Buying direct from landlord??

leemuddywaters

Hi. Our loandlord has asked both my and my fiancee if you would be interested in buying the house we currently rent. We are interested in doing this are a little unsure about the benefits if any there would be in dealing with him direct. Would he require a deposit for instance?

Any advice on this would be great

Thanks

~Beanie~

It would be exactly the same as buying any other house except you won't be going through an estate agent. If you need to get a mortgage then yes, you will need to have a deposit available.

leemuddywaters

Thanks Beanie. What about a direct deal between ourselves and the landlord though? Is that a possibility?

Voyager2002

leemuddywaters wrote: »

Thanks Beanie. What about a direct deal between ourselves and the landlord though? Is that a possibility?

Yes if you are paying cash, or if he is lending you the money to buy it. Most people need to get a mortgage from a lender though.

If you are dealing direct then there is no Estate Agent involved. The main benefit is to the landlord, since normally an EA charges thousands of pounds to the seller for finding a buyer. So make sure that you are getting a good deal to reflect that landlord's saving. And be aware that when there are difficulties with a house sale (and there always are) the estate agent is the person who finds solutions.

leemuddywaters

Thanks Voyager. How would it work if he was to lend us the money? Before we sit down with him we want to gain as much knowledge as possible. Could we not just set up an agreement personally to pay him so much a month? He offered to sell us the house.

Thanks

DawnW

remember you will need a solicitor whoever puts up the money.

hearts

leemuddywaters wrote: »

Thanks Voyager. How would it work if he was to lend us the money? Before we sit down with him we want to gain as much knowledge as possible. Could we not just set up an agreement personally to pay him so much a month? He offered to sell us the house.

Thanks

If he is offering to sell you the house, I'm assuming he is just allowing you fisrt refusal. Not actually lending you the money to buy it.
If he owns the house outright, then theoretically he could arrange to sell it to you, with you paying him monthly instalments but I'd say this is very unlikely.

leemuddywaters

We currently pay £800 a month so roughly what we would be paying on a mortgage. He doesn't have plans to sell but because we are settled there he said he would be willing to. The monthly installment route was the one I was thinking of, I have never heard of anyone doing this so was interested to know if it is a possibility? We really want to get on the ladder but with lenders not offering a lot of mortgages at the minute I was going to ask him if we could come to another arrangement.

Pee

It is possible. It is a private mortgage and both you and he would need your own solicitors.

It's the sort of arrangement I would be willing to come to with my sister who is 100% trustworthy but not anyone else... and why would he sell you the house for the amount you currently pay in rent, unless he is your fairy godmother?

leemuddywaters

Dont expect him to be offering the same amount we currently pay in rent. Just trying to see what the options may be.

Lost_Again

I would say he wants to sell the house to release the capital he holds in it. This would mean a normal sale with you getting a mortgage to buy it. You will need about 20% of its value in order to get a mortgage.