Renting then buying!

readerk

Me and my boyfriend recently found a house we liked to buy but could not get the mortgage to do so. Since then the owner has said he would rent the house to us and then we could buy it once we could get a mortgage.

The estate agents had said on the phone about using a 5% vendor gifted deposit so we would only have to save the other 5% to get the 10% deposit.

My boyfriend has gone into the estate agents to check a few things this morning and they have said that the 5% is really a verbal agreement and could not be guaranteed. We really want the house and to buy it but if this is only verbal and he could go back on this we do not want to go ahead.

Is this normal or would we have to get a clause in the tenancy agreement to say this??



answers much appriciated!! x

maninthestreet

It's unlikely any rental tenancy agreement would include clauses that would commit the landlord/owner to selling the house to you with a guarantee of a 5% gifted deposit from him.

Mutton_Geoff

The problem is to commit to a gifted deposit (nasty thing anyway in my opinion), you'd probably have to commit to a purchase price. Why not move in on a one year AST agreement then make a normal offer later down the line? Don't try to wrap it all up in one go before you move in, you might not even like living there after a while, then you've got the advantage of a low cost "try before you buy" scheme. In a years time it's likely the price will be further depressed by at least 10% so there's your money back already!

Soot2006

Now is not the time to buy with a small deposit.

readerk

Surely if the price depreciates and we offer to buy it he would simply turn it down in the hope that the price would then go up again.

Would it be an idea to get an independant solicitor to draw up a contract regarding a discounted purchase price/gifted deposit??

Mutton_Geoff

Surely if the price depreciates and we offer to buy it he would simply turn it down in the hope that the price would then go up again

You need to put yourself in the position of a person trying to sell/let property in this current market not a prospective buyer who has fallen in love. Property prices aren't going up anytime soon and hopefully your vendor/landlord will realise this.

A strategy is required and one with commitment like yours wouldn't be my choice. Don't forget that he won't be able to sell with you as tenants (property needs vacant possession for completion) so technically you have to move out and back in again if you do buy.

I'd be more patient, the house won't be going anywhere at the moment.

Incisor

readerk wrote: »

Surely if the price depreciates and we offer to buy it he would simply turn it down in the hope that the price would then go up again.

Would it be an idea to get an independant solicitor to draw up a contract regarding a discounted purchase price/gifted deposit??

No, not a good idea.

His solicitor will advise him not to do such a deal with you for an unspecified date in the future, because he will no longer have the right to sell to anyone else. Your solicitor will not let you sign such a deal for a specific date in the future because you have no mortgage, nor is there any certainty that you will meet the criteria to get one beyond the immediate future - given that the criteria will most likely change.

poppysarah

Think about it again when you have saved 10k and not a minute before.