Valuation of property with tenants

Sunrise_Sunset · 04-02-2019 1:58pm #1

Hi, we are in the process of a mortgage application. The underwriters have said we need to get a valuation report. We didn't want to let the tenants know about us potentially selling the property until we definitely had mortgage approval, in case we don't get it. But now they have requested it before they give their final answer. Can I just tell the tenant that we need access to the property for a valuation? Do I have to give any further information? If we get the approval, we will of course be giving them at least 3 months notice at that point.

04-02-2019 2:02pm

Tell them it’s for home insurance

Askthe EA · 07-02-2019 2:12pm

BrownFinger wrote: »

Tell them it’s for home insurance

Exactly, or taxation reasons, we're well used to that cover story.

Sunrise_Sunset · 07-02-2019 8:21pm

Thanks. Yes we went with the line that it was for insurance purposes.
However, if we proceed to put the property up for sale, does it look bad that we lied to the tenants?

Caranica · 07-02-2019 9:19pm

lililanny wrote: »

Thanks. Yes we went with the line that it was for insurance purposes.
However, if we proceed to put the property up for sale, does it look bad that we lied to the tenants?

"the valuation was higher than we expected so we decided it would be a good time to sell"?

the_syco · 08-02-2019 1:58am

lililanny wrote: »

However, if we proceed to put the property up for sale, does it look bad that we lied to the tenants?

This comes to mind :pac:

https://www.youtube.com/watch?v=FUh3TZpMCY4

Old Perry · 08-02-2019 12:37pm

lililanny wrote: »

Thanks. Yes we went with the line that it was for insurance purposes.
However, if we proceed to put the property up for sale, does it look bad that we lied to the tenants?

IMHO Yes it does look bad. What's the harm in being honest, let your tenants know about the potential sale and allow them to be as prepared as possible.

Lux23 · 08-02-2019 1:52pm

lililanny wrote: »

Thanks. Yes we went with the line that it was for insurance purposes.
However, if we proceed to put the property up for sale, does it look bad that we lied to the tenants?

Why don't you just tell them? It would give them a chance to start saving for a deposit.

the_syco · 08-02-2019 4:52pm

Lux23 wrote: »

Why don't you just tell them?

The tenants could refuse entry by the valuation person, to stop the house being sold.

mp3guy · 08-02-2019 5:29pm

Lying to them about the reason could backfire whenever the person doing the valuation lets it slip in person why they're there.

Sunrise_Sunset · 08-02-2019 10:57pm

We didn't want to tell them because we are not definitely selling. We've applied for a mortgage, if we don't get it, we're obviously not selling.

If we do decide to sell, I think 3 months notice as per the RTB rules is plenty. When our previous landlord decided to sell, we were given 3 months notice and managed to get another lease elsewhere within that time frame.

Del2005 · 09-02-2019 12:31am

mp3guy wrote: »

Lying to them about the reason could backfire whenever the person doing the valuation lets it slip in person why they're there.

They'll be there to value the house as the OP already informed the tenants. The OP doesn't have to tell the valuer why they want the property valued. So what can they let slip?

Valuation of property with tenants

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