buying house from our landlord

Captain_Mainwaring_2

clutton wrote: »

why would you want to buy and pay a mortgage when you have security for life as tenants ?

do you have a hefty deposit saved up ? how much rent do you pay at present and how much money would you have to borrow to buy the house ?

Something to pass on to the kids, rather than a rent book perhaps?

Some people actually have a bit of ambition Clutton.

Free_Conveyancing_Advice

If you don't have a deposit to offer then I doubt you will be able to get a mortgage (100% mortgages are a thing of the past) so you should look into this before proceeding as it may be a moot point. If you do go to auction then, even though you would be risking losing the valuation fee if you didn't win at the auction, I would a formal mortgage offer (not just an agreement in principle) first. If you exchange contracts at an auction an then cannot come up with the finance because of a problem with the valuaiton then you stand to lose a lot more than the valuation fee. Also, I'm not fully conversant with the law surrounding secure tenancies but presumably, even though you would be both landlord and tenant, you would still need to surrender your tenancy so that in the event that the mortgage company had to repossess their interest would not be subject to your tenancy (otherwise they are not going to lend you as much). You should therefore check what is involved in surrending the tenancy and ensure there is time to do this between exchange and completion (obvoiusly you must not surrender your tenancy before exchange). Don't assume that just because a formal mortgage offer has been issued no further steps need to be taken - the offer may include a "special condition" which states that the tenancy must be surrendered before release of the loan.

bookduck

think your had better look on rightmove.com and mouseprice.com first and see if the houses in your street approach any ware near that price.

have a look here http://www.thinkproperty.com/property/13632117

poppysarah

Captain_Mainwaring wrote: »

Something to pass on to the kids, rather than a rent book perhaps?

Some people actually have a bit of ambition Clutton.

Can they not pass on the rent book?

clutton_2

Maybe you could get another family member to buy this house as a BTL with you as tenants. The amount of money that you will be able to borrow to buy this house, will depend ENTIRELY on the value of the rent you can get for it - because the tenancy is assured - the achieveable rental will be £600 pcm as that is what you are paying now -

based on that rental and the current high interest rates, this property will be worth a huge amount less than £179k - let alone £250k!!!

your LL is trying it on - as he knows there will only be a tiny tiny amount of investors who will be willing to take you on as tenants - you have a low controlled rent, and a tenancy which can be inherited by family members - investors nightmare !! - hence VERY low price payable

you hold all the cards here -

BUT - how you finance a purchase - thats another matter - especially if you have no deposit

neverdespairgirl

clutton wrote: »

your LL is trying it on - as he knows there will only be a tiny tiny amount of investors who will be willing to take you on as tenants - you have a low controlled rent, and a tenancy which can be inherited by family members - investors nightmare !! - hence VERY low price payable

I agree. The LL is trying to sell at a terrible time.

OH and his brother inherited, between them, half a rent-controlled house in North London. They sold it last year to a company which bought such places, at 75% of the market value without sitting tenants. They completed in August 2007 :rotfl:

Walletwatch

absyandtigger wrote: »

Hi all,
We're in the unusual position of being offered the oppurtunitity to purcahse our house from our landlord.
We are Rent Act Tenants (sitting tenants) having live here since 1984, and pay a registared rent. The tenancy can be passed once on the death of my husband, which hopefully will be in the distant future as we are only in our forties!!
The landlord says the house is valued at £325.000 on the open market, but worth only £179.000 on the open market with us in residence. He wants us to pay a marriage value which would bring the price to £250.000.
This seems like a bargain, but with falling prices and mortgages difficult to get is this a as good a deal as it sounds?
Also whats to stop us buying it at auction for the lower price?
Many thnks for any advice we're new to all this and don't really know where to go for advice.

Here's my take on this. I am in a similar position with the very important difference that I am not a sitting tenant, am on a typical one year lease with a six month break clause. However, the figures more or less tally, as my landlord is looking to sell my flat, and the flat has been valued at 325000 as of three months back. The asking price has since come down albeit by a measly 5000 pounds. I am hoping to put in an offer at some stage for 250,000 which might be foolhardy, but that just may be an indication of the extent to which I see this market going down.

You are better off than me on two counts - firstly your tenancy status from a legal perspective and secondly the fact that I stay in Canary Wharf, which is at best sluggish in its house price drops. Now we all have different risk appetites and different outlooks on what the market is going to be like a year and a half down the road, so I can only say what I would do if I were in your place. However, what I still don't understand is the motivation behind you wanting to buy the place. Can you explain that pls?

Cheers
WW

absyandtigger

Our reasons for wanting to buy.....



I guess the main reasons are, not wanting to pay rent as we get older, at least a mortgage would end.

Having the choice to sell and down size at some point in the future.

The house is an old farm cottage and quite remote, no bus route etc, which may become a problem again in the future.

It only has a wood burner to run the central heating and one day we will be to old and doddery to chop wood!!!!

Choices later on I suppose it comes down to.

bookduck

neverdespairgirl wrote: »

OH and his brother inherited, between them, half a rent-controlled house in North London. They sold it last year to a company which bought such places, at 75% of the market value without sitting tenants. They completed in August 2007 :rotfl:

Mmmmmm! How would the new tenants that move in get to know of it being rent controlled? Could the new owner not keep quiet and just advertise it as normal?

girleight@

If you could afford £1600 a month then couldn't you save £1000 a month and use that as rent when you are older?