When a property sale falls through, landlords often face difficult decisions about their next steps. This situation recently arose for a London flat owner whose sale did not complete, prompting consideration of alternative rental options such as short-term lets.

Sale Falls Through After Limited Offers

Adrian shared a situation involving his daughter’s flat in London, which was on the market but failed to sell. Despite several viewings, the property attracted only one offer, which was significantly below the asking price. Consequently, the sale did not proceed.

With the tenants having given notice to vacate, the flat is now empty. However, the owner is hesitant to relist the property for sale immediately, given the previous lack of interest and the low offer received.

Considering Airbnb as a Short-Term Solution

In light of these circumstances, the owner is contemplating running the flat as an Airbnb for a few months. This approach could provide a temporary income stream while avoiding the challenges of putting the property back on the market straight away.

Adrian notes the importance of informing the lender and insurance provider about this change in use, recognising the need to comply with any relevant terms and conditions attached to the mortgage and insurance policies.

Key Considerations for Landlords

Switching from a long-term tenancy to short-term holiday lets involves several practical and legal considerations. Landlords must ensure their mortgage lender permits short-term lets, as some agreements restrict or prohibit this use. Similarly, insurance policies may need updating to cover the different risks associated with Airbnb-style rentals.

Additionally, landlords should be aware of local regulations governing short-term lets, which can vary significantly across London boroughs. Compliance with licensing requirements and planning permissions is essential to avoid penalties.

What this means for landlords

This case highlights the importance of flexibility and due diligence when a property sale fails to complete. Exploring short-term letting can be a viable interim strategy, but landlords must carefully navigate lender agreements, insurance coverage, and local regulations.

Engaging with professional advice and thoroughly assessing the implications can help landlords make informed decisions that protect their investment and income streams.

Source: Based on reporting from Property118

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