DO YOU WANT TO SELL YOUR RENTAL PROPERTY TO PAY OFF DEBT?

Are you a landlord looking to sell your rental property? Over the past few years, the housing market has presented significant economic challenges for landlords. From legislation changes to high buy-to-let mortgage rates, there’s also been a recent rise in Stamp Duty for additional properties. Rather than expanding their property portfolios, many landlords are focusing on optimising their existing holdings.

If you’re thinking of selling one or more rental properties, however, there might be options you have not yet considered. At RJJ Developments, we regularly support landlords with their property portfolios. Depending on the situation, we might be able to help you sell your buy-to-let, although it could also be worth considering our rent-to-rent proposition.

SHOULD YOU KEEP OR SELL YOUR RENTAL PROPERTY?

First, let’s look at the advantages and disadvantages of selling a rental property. If you need capital fast to pay off a substantial debt, then selling your rental property can be a viable option. You can then use the lump sum to pay off your debts. However, if the sale is likely to be considered as a large capital gain, there could be big tax implications.

When you sell a rental property for more than you originally paid for it, you will have to pay capital gains tax (CGT). You have 60 days to pay this tax from the completion date of the sale. Similar to the income tax allowance, there is an annual CGT personal allowance of £3,000. This allowance can be combined if you’re a married couple or you’re in a civil partnership and you jointly own a rental property.

Also, if you have lived in the property at any point as your main residence, you might be able to reduce your buy-to-let CGT bill. You don’t usually pay CGT when selling your home, due to private residence relief (PRR) rules. So, you might be able to claim tax relief on the years you’ve lived there, which can lower your CGT tax bill.

SELL OR RENT A RENTAL PROPERTY TO US

There can be extra costs and fees involved when it comes to selling a property. You can sometimes sell a property without involving an estate agent, so it’s always worth speaking to us about purchasing your buy-to-let. We provide a fully confidential, discrete service for landlords who need a fast, hassle-free way to sell their rental properties.

We can also manage your rental property on your behalf using a rent-to-rent business model. Rent-to-rent can be highly lucrative for landlords, as you can optimise your cash flow with a stress-free, guaranteed rental income. You would rent your property to us, and we will manage the tenants. For more information on rent-to-rent property models, read our blog How Does Rent to Rent Property Work?

To conclude, before you decide to sell your rental property, talk to us about your options. At RJJ Developments, we regularly help landlords find profitable ways to both maintain and optimise their buy-to-let or property portfolio.

If you have any questions about this article or you would like a chat about selling your rental property, please get in touch.

Thank you for reading our latest blog, Sell Rental Property.

RJJ Development