To overpay for the house or for the rent?

Fly_Baby

We have been looking for the house for 6 months and found something that we quite like. The problem is that it is on sale for more than similar houses in the immediate area have recently sold (I know because I viewed most of them).

Say, there was a house with an identical layout but slightly bigger and with a huge conservatory which actually works as a third reception room, and with a garage for 295K. It was sold in October.

And this house has not been extended in any way (has a utility area and an outbuilding though) but is nicely presented - and the vendors "might consider" 295K but actually want close to 300K.

Other similar houses (maybe very slightly bigger) were recently sold for 280-285 if they have not been extended.

Now, I am very reluctant to overpay for THIS house (we like it but we will definitely lose money if we want to sell, and we were initially seeing it as our first house, not the last one) - but another problem is that if we don't buy a house now we will have to sign a 6-month rent contract with our current landlord, which is not convenient to us because we are looking to buy a house sooner than that and because they have increased the rent substantially.

So what's more economically viable? To pay over the odds for this house and get house searching over with - or sign up for another rental contract and hope that either this house's vendor will consider a lower price or that something else comes up?

Thanks in advance!

PS. If we go for this house at this price we will not achieve a 75% LTV which we were really hoping to achieve. But then, I feel outraged at being forced into a fixed-term rental now that we've been so close to buying a house.

poppysarah

Don't sign the contract with your current landlord. Your existing tenancy will roll over into a periodic one and then if they really want you to leave they'll evict you. Chances are they will do nothing.

This forced continuing tenancy presssure is revolting and needs to be stopped.

BitterAndTwisted

When does you current rental agreement expire? The process from putting in an offer to completion could take months and months. Have you investigated whether your landlord would agree to you going onto a periodic tenancy which allows you to give one months notice rather than signing another six month contract?

BadgerFace_2

poppysarah wrote: »

Don't sign the contract with your current landlord. Your existing tenancy will roll over into a periodic one and then if they really want you to leave they'll evict you. Chances are they will do nothing.

That there is sound advice, don't be pushed into a new minimum term. Hopefully it won't be long before the vendor lowers their expectations and you can make an offer.

Fly_Baby

poppysarah wrote: »

Don't sign the contract with your current landlord. Your existing tenancy will roll over into a periodic one and then if they really want you to leave they'll evict you. Chances are they will do nothing.

This forced continuing tenancy presssure is revolting and needs to be stopped.

We are on periodic. They want a new fixed one now, to ensure the house occupancy until summer (when they are more likely to find a new tenant).

casper_g

Fly_Baby wrote: »

We are on periodic. They want a new fixed one now, to ensure the house occupancy until summer (when they are more likely to find a new tenant).

Tell them, very politely, that you don't want to. They can either accept you continuing on periodic or sling you out and ensure they have the house empty in winter when they know they are less likely to find a tenant quickly, especially if you are not inclined to be co-operative over viewings while serving your 2 months' notice....

Fly_Baby

BitterAndTwisted wrote: »

When does you current rental agreement expire? The process from putting in an offer to completion could take months and months. Have you investigated whether your landlord would agree to you going onto a periodic tenancy which allows you to give one months notice rather than signing another six month contract?

How long does it usually take to purchase a house from the time your offer is accepted?

They don't want a periodic tenancy. I feel completely trapped and either solution is going to cost me a lot of money - either by overpaying for this house or by risking to pay both mortgage and the rent for a few months (both are likely to be slightly over 1K per month).

BitterAndTwisted

Going from a periodic to a fixed-term tenancy sounds like the LL wants their cake and eat it. I would advise you not to sign. However you must be aware that should the LL be the immovable object on this issue they might consider issuing you with a Section 21 giving you two months notice. That doesn't mean you actually have to leave in two months but with all the stress of buying etcetera you might not want to contend with that as well.

As with most things in life, it's always better to attempt a bit of friendly negotiation if you can.

BitterAndTwisted

Fly_Baby wrote: »

How long does it usually take to purchase a house from the time your offer is accepted?

How long is a piece of string? Every situation is different.

Fly_Baby

BitterAndTwisted wrote: »

Going from a periodic to a fixed-term tenancy sounds like the LL wants their cake and eat it. I would advise you not to sign. However you must be aware that should the LL be the immovable object on this issue they might consider issuing you with a Section 21 giving you two months notice. That doesn't mean you actually have to leave in two months but with all the stress of buying etcetera you might not want to contend with that as well.

As with most things in life, it's always better to attempt a bit of friendly negotiation if you can.

We kind of tried.

Fly_Baby

BitterAndTwisted wrote: »

How long is a piece of string? Every situation is different.

With this house, the EA says that they don't anticipate any delays in the house purchase.

I just hate to be pushed into anything - and right now I feel that I am being pushed where a lot of money is involved.