Private landlord wants to sell part of the house to us

herbie72

Hi there,

Our private landlord wants to sell the 4-bed Victorian terraced house we're renting. And he's given us first dibs on it. Unfortunately, he wants way more than we think it's worth, and a lot more than we can afford. We're having a meeting with him about it tonight.

He's mentioned some sort of part-buy scheme in the past, though no further details have ever been discussed. So I'm intrigued about tonight's meeting: will he want to sell half or two-thirds of the property to us? And if so, what will happen with the remainder? It does sound like it's fraught with potential problems.

Has anyone on here ever done a part-buy / part rent, or a percentage purchase, with a private landlord before? As far as I was aware, these were usually only done on new-builds or housing association properties etc.

Will post developments tomorrow. Thanks

kunekune

Sounds like he is in financial trouble!

G_M

If it's more than you think it's worth, don't get involved, whatever the 'arrangement'.

Part sale/part rent? Fraught with problems especially on a private basis. There are schemes like this run by Housing Associations, but I'd avoid a private deal like this.

Offer to buy outright, but at market rate. Each of you arrange for 2 estate agents to come and vale the house. Take the average of the 4 valuations.

Middlers

If he sells privately to you he is already saving around 1.5% EA fees so you could possibly use this to negotiate.

herbie72

Thanks for the comments. The upshot of the meeting is that he basically wants us to buy two thirds of the property, paying a 'second charge' on the remainder of the property. But even at our 'valuation', it would be prohibitive, financially. So we've ruled ourselves out of that.

He did admit, Kunekune, that he needs to refinance, interesting you said that. He says that unless we decide to move out, and he sticks it on the market, he will probably now refinance, put the rent up and ask us to fix to a new, lengthier tenancy agreement. All a bit scary, really, as the six-month rolling contract we're on at the moment is perfect for us.

We sold at the end of 2008 for £40K under the asking price and have been renting ever since, and we're now finding it really tough to get back onto the market because we're now classed as first-time buyers and only have a 10% deposit. Today's stamp duty news will really help, but I still think we'll have trouble getting back on the ladder. Bit of a 'mare, really!

Pee

I think to be discussing this sort of scheme with his tenants he is on pretty shaky financial ground and I would be looking to move if I was you.

Dr.Shoe_2

Or offer him a rock bottom "take it or leave it" deal.