Buying options for tenants?

HarriettPotter

I still own a house with my ex and we have recently put it on the market. We have had tenants for 3 1/2 years and quite honestly, they have been brilliant - very clean, no problems etc.

They are russian and the guy is hoping to get a visa at the end of this year which will allow them to stay here permanently (I believe).

Anyway, he is a little distressed at us selling the house - he really wants to buy it. He did try to buy it when we tried to sell it a couple of years ago but could not get a deposit together.

This week, he sent me and my ex an email explaining how much he and his family want to stay in the house. We truly appreciate this and of course we would love to find a way for him to stay.

He has sent us some links about tenants buying. They are nothing I have ever heard of before and a quick skim read (looks like a lot of sales fodder to me) suggests they are not quick easy options and would likely mean a lot of hoop jumping for me and my ex - and him buying the house still isn't guaranteed.

Have you heard of any such options? I have enclosed the links he sent me in case you are familiar with them. I would be grateful for any views/opinions.

H

https://www.capitalfortuneloans.com/index.php/landlord-deposit-mortgages.html

https://www.renttosell.co.uk and https://www.renttobuy.co.uk

DVardysShadow

I have only taken the quick skim too. I hate web pages with some ghastly person talking to you. Ugh.

The 1st is basically a gifted deposit from yourself

The 2nd and 3rd are not too good - basically the same outfit doing ''sell your house for cash' and rent a house with an option to buy - although for your tenant the option to buy may be interesting.

As you say, potentially a lot of hoop jumping. In your position, I think I would not do any hoop jumping, but would make the tenant do any running around. In particular, I would not do gifted deposit if it required money to be put up front. I would give the tenant say 6 weeks to come up with an offer either from himself or from one of these companies which meets a price and serve a S21 notice at the end of the 6 weeks [obviously let him know what you plan].

And you need to be clear what will happen in the event of an offer being made and games being played such as dropping the price - that the section 21 will stand. One funny thing you may have to deal with is the issue of vacant possession - obviously houses are normally sold with vacant possession and attract a lower price if there is a tenant in place. In this case, you obviously will not be able to give vacant possession, but you would be handing the property on with the tenant in place, which is the essence of the deal in this case.

PasturesNew

It's a tough call, but I think you have to be business-like in this and firm..... they either buy it or they don't. Going down the route of any odd schemes, with a foreigner who doesn't even have a visa to live here, is likely to lose you time, sleep and money.

HarriettPotter

Thank you both you have confirmed what I thought.

I think as we want to sell quickly we will stick with things with the agent and let the tenant know thats what we are doing. If he can find anything in the meantime its a bonus but I don't really think we are in the position to do him favours or hang around for him.

Thanks again for your replies.

neverdespairgirl

He's unlikely to be able to get a mortgage unless he has permanent status here, and even then, he'd need a hefty deposit.

G_M

You'll now have to consider what to do about the tenant if you put the property on the market.

Buyers dislike looking round houses with tenants - they worry whether the tenant will leave.
Tenants have a right to refuse viewings.
Solicitors will (normally) not exchange contracts until the tenants have left.

So asking the tenants to leave has to be faced, and implemented, unless you plan to sell to a landlord with the tenants in situ - but at a reduced price.