Are there alternatives to selling to property investors?

If you’re looking to boost your income, selling your home to property investors will provide you with a quick, substantial cash injection. MPG Investments, for example, will give you cash for your home in just 7 days. However, as a proud homeowner who may have invested ample time and money in your property, you may not be willing to part with this valuable asset. Moreover, it may be possible for you to remedy your current financial crisis with an increase in your monthly income, rather than actually selling your home.

Rent out your property and increase your monthly income

A viable alternative to selling to property investors is renting out your home, or a part of it that is not being used. Now more than ever, opportunities to rent out UK houses abound, due to higher property prices and an influx of foreign workers to British shores. Renting out your home could provide you with the cash you need to settle debt, pay tuition fees or get that new business off the ground. However, a haphazard tenancy agreement that is entered into without legal advice could have nasty consequences if disagreements arise between owner and tenant.

Consider the advice below before you rent out your home, in order to avoid messy disputes and unnecessary complications. Alternatively, contact MPG Investments today to find out more about selling your home to property investors.

Fact and advice to consider before renting out your home

UK homeowners opt to rent out their homes for a variety of reasons. Some may have second homes that stand empty for most of the year, whilst others may have inherited a home that is not being used. In certain instances, homeowners have granny flats on their properties, or additional bedrooms, which serve as a great source of extra income. No matter the reason for renting, or the type of property you wish to rent out, it is vital to get legal advice before entering into any lease agreements with tenants.

If you plan on renting out a part of your home while still living in it, you become a resident landlord. The tenancy options available to you are an Excluded Tenancy, and an Unprotected Tenancy. The type of tenancy agreement entered into will depend on whether or not you will be sharing certain facilities with your tenant.

Excluded Tenancies exist when you share a home, and the use of essential facilities, with your tenant. This type of agreement, created by the Housing Act in 1988, is designed to protect the rights of smaller homeowners who share their dwellings with a tenant. Unprotected tenancies apply when you rent out a portion of your property while still living in it, but do not share any essential facilities with your tenant. Find out more about these types of tenancies here.

If you live in England or Wales, you are not compelled to furnish your tenant with a written lease agreement – a verbal agreement will suffice. However, the Law Society recommends that a written agreement be drawn up anyway, as this document will detail your responsibilities and rights as a landlord in a manner that can be enforced by the law. A written contract will also help to reduce the risk of disputes, as both parties will be aware of their rights.

If you intend to rent out a separate property, you’ll enter into one of several tenancy agreements – the two most common of which are an Assured Shorthold Tenancy and an Assured Tenancy. In the case of an Assured Shorthold Tenancy, tenants enter into a lease agreement for at least six months, and once this period has expired, they have little right to stay in the rented property.

An Assured Tenancy agreement, while usually used by registered social landlords and housing associations, can be utilised by private landlords too. It documents the circumstances under which the landlord may terminate the agreement, and it also affords the tenant far more rights to remain in the property once the contract expires.

Whichever type of tenancy agreement applies to your property, it is essential to obtain legal advice before drawing up a contract or entering into a verbal agreement with a tenant. Consult a solicitor right from the start to avoid disputes – or, worse, legal wrangles.

I’d prefer to sell my house than rent it out. What are my options?

If renting out your property does not appeal to you and you’d prefer to sell your home, there are a number of options available to you. You could auction your home, sell it through estate agents or turn to established property investors like MPG.

Homeowners with little time in which to sell could auction their homes – but they face losing up to 75 percent of their home’s value by selling in this manner – especially if they’re facing repossession. On the other hand, homeowners with some time on their hands could choose to sell their houses via the traditional route of an estate agent. However, be warned that this type of method is often riddled with complications, least of which is the fact that it could take up to a year to sell your house on the open market.

Estate agents are also notorious for charging exorbitant fees, and employing underhanded tactics to ensure that their commissions are as large as possible (for example, they may inflate the asking price of your property, calculate their commission based on this amount, and then demand the same commission even when you are forced to sell your home for less). There is also the very real risk of chain-breaking, which could disrupt – or even destroy – the entire sale.

For a completely safe, reliable and convenient sale, rather turn to property investors such as MPG. As an established firm with years of experience in buying and selling homes, we are able to purchase your property, for cash, in just one week. Although our guaranteed cash offer will amount to between 75 and 85 percent of your home’s market value, we won’t charge you a penny in agents’ fees, commissions or hidden costs – in fact, it’s a completely fee-free sale. We’ll even cover the cost of your legal expenses!

Contact the UK’s leading property investors today on 0800 634 9231, and discuss your options with MPG’s qualified consultants. If you wish, we’ll send a valuator around to your home within 24 hours to conduct a free property value assessment. Thanks to MPG, it’s easy to sell your home for cash in just one week.