Potential buyer wants to rent until he can sell

Aeia

My mum's house has been on the market since April and only had 2 viewings and I think 1 was just nosey neighbours. It needs quite a bit of work doing to it to bring it up to a modern standard (she thinks it's fine!). It's currently vacant as she is now living elsewhere.

The last viewing has thrown up an odd offer. The guy has a house to sell, he has an interested buyer but they need a buyer to move so he's obviously currently stuck in a chain.

He wants to rent my mums house at a low rent and do some minor improvements while renting until his house sells then he will buy it. He wants to clean, redecorate main rooms, cosmetically tidy kitchen and widen drive entrance (an only get a small car in at the moment but just needs a pillar taking out).

He's rightly said that these improvements would obviously improve the house if the purchase fell through, hence the low rent. I think we'd need to spend at least 2k on it to rent it out commercially.

If I can get him to up his offer a bit, it sounds tempting. The house would be occupied which is better than empty (I live 200 miles away so can't visit often).

My main worries are could there be any legal problems? Can we get a binding offer? He could rent for 6 months then say he won't pay what he's offered.

Estate agent has a solicitors and a rental arm so they are going to run it past the legal team.

Anyone else had expereince of this?

Cannon_Fodder

Concerns for the legal team;

How do you get him out if his house never sells?
How do you get him out if his house sells, but he decided he wants to buy something else?
How long does the low rent apply for?
What if his credit is damaged, preventing him from obtaining the mortgage when he needs it? (assuming one is needed)

I can see the benefit of having it occupied, but the same concerns must apply to him over having his place empty...so what is the benefit he is getting out of it? I'm guessing he won't actually live in it 100% of the time, more likely its to have access to perform the improvements. Saves him living in a building site, when the purchase goes through.

Insurance ?
What if he runs out of money, the work is so incomplete as to be worse than it is now, and he scarpers...?

Minefield.

Will need funds of some sort, like an extra large deposit, lodged to protect your Mum's interests, I'd guess.

Doozergirl

No. Do not do it. It's a total minefield if the plan is to actually sell. (Some "what if" scenarios above but there are many more!)

Choosing to be a landlord for the sake of being a landlord is different but still it is not something that you take lightly (if you fancy reading the thread about the woman "forced" to live in a tent by "squatters" you'll find some evidence of the responsibilities and risks that being a LL entails and what happens when you don't take them seriously). Being 200 miles away does not help that situation.

If he wants it badly enough then he can drop his price to one that will see his property sell. And perhaps you should do the same. It says something about the price if a renovation project for someone isn't getting viewings...

If you wanted to post us a link of the house we could tell you why it's not getting viewings? As you're new you'd have to put some spaces in the web address so that the forum doesn't pick it up as a link as you need a certain number of posts before you can properly link.

Aeia

Here's the property...

www . rightmove . co.uk/property-for-sale/property-29682869.html

Next door is also on the market ( www . rightmove . co.uk/property-for-sale/property-16537626.html )and has been done up and has been on for 18 months at least. They're def asking too much. The guy who's offering has seen next door in the past.

I know the property probably has a limited market, pretty much retirement as its only 2 bed, has a small garden but the views are amazing (if you can get over the train line at the bottom of the garden). Quite a few people are put off by the road/trainline.

So really looking for retired train or birdspotters!!

Cannon_Fodder

Find out who the developer is next door, and ask if he wants another doer-upper...?

Disgraceful picture 7, on the other one. Hiding the railway line, like people won't notice when they call round...?!

Bellalolo

Have a look into rent to buy (also known as Lease option) no experience but may give you some financial gain if he decides not to buy. You could also charge going rate rent as you would not be able to pull out of sale and his investment would be safe.

Doozergirl

http://www.rightmove.co.uk/property-for-sale/property-29682869.html

Crikey, you're right about the train line. I wonder whether it would be a better idea to remove that pic as it doesn't even give the house a chance. In all honesty I wouldn't consider viewing it when that pic looks like it was taken from the trackside

What kind of train is it?

You know the pictures are dire. When I click on streetview it looks like a lovely vibrant street with this house being the one that kind of lets the street down.

You really need pics taken on a lovely sunny day.

Doozergirl

Next door, the other side of your semi is on for £225k. That is a complete red herring so I'd ignore them in terms of your own pricing. They bought it, presumably needing the work doing, at the peak of the market for £151,000!

Number 32 sold last year for £180,500. It doesn't look in bad nick on streetview and it's detached which automatically places it at a higher value than the one you are trying to sell.

I think you're quite heftily overpriced Even in a slow market you'd expect plenty of viewings on something that needed work if the price was right. It might be a bit of a generalisation but bungalows are in quite short supply and the people that buy them not so affect by the recession so demand is still quite strong.

I'd consider dropping the price at least to this man that wants it - see if that will allow him to drop his own price to get his sold and allow you to move on.

Not a chance I'd let him move in though.

rrf494g

original offer sounds like extreme danger

Has the individual any DIY skills?, He could
wreck the place
live at low rent forever
effectively stop it ever being sold
sub-let for more money
split into flats and get double sub-rent
burn the place down

It's tempting?

Good Luck
regards

tbs624

Aeia wrote: »

Estate agent has a solicitors and a rental arm so they are going to run it past the legal team.
?

And I bet they come back and say "we'll act as your letting agent , here's a list of our management costs". They'd probably try to fleece you twice over, once for a tenant finder fee and then again for finding you the seller if things did progress to a sale.

I wouldn't entertain this guy: Doozer is giving you some good suggestions

Contessa

The house seems to have uninterrupted views across Morecombe Bay-surely a real selling feature. Can you get photos of beautiful sunsets for the RM brochure?