One option of course is to not have an exit plan. In other words, keep hold of the properties for the long term and make use of the income before passing them on to loved ones. This is a particularly attractive strategy if the properties have no mortgages. However, even if they do, it can still be an effective plan. Lenders are becoming much more amiable towards older borrowers at the moment. Furthermore of course, if you own the properties through a company which has another director, they can continue to manage the mortgages.
The downside of this if you do have mortgages, of course, is that the investment is not as hands-off as you may like it to be since you’ll still have to be concerned with interest rates and product changes.
Another option for an exit strategy would be to sell off some of the properties you own and use the money you make to pay off the balance of the mortgages on the remainder of your portfolio. This means you can benefit from the income from your remaining properties without worrying about mortgage repayments. And if you bought your properties some time ago, or in an area with significant growth, you may not have to sell more than one or two to clear your remaining debt.
You will, of course, need to factor in Capital Gains Tax however.
Finally of course there’s the option of selling everything. Liquidate all of the properties, clear any remaining debt and use the profits to diversify your investments. You’ll get to look at new markets and you won’t have to consider what to do with bricks and mortar.
Whatever your thoughts on the future, it’s always worth chatting to an expert to consider your options. A good exit strategy is the last smart step in your investment journey.
