Decleration of Trust Between Me And My Landlord - Help!

Danjames90

slyracoon wrote: »

Offer him £250k. That way you don't need to raise the 28k and you avoid the stamp duty. If he declines then he is obviously not that desperate to sell so just sit tight. He will never sell at £286k if it failed to sell in 12 months at £270k.

He is losing money every month, don't let him shift that burden onto you just so he can clear his mortgage. Offer what you can afford and what the property is worth.

slyracoon wrote: »

That dosen't make much sense.

At £286k you need to raise £28k.

At £250k (£36k less) you still need to raise £25k?

10% for a deposit as I would only be able to get a 90% mortgage.

G_M

Why would you want to pay so much above the market rate? The property is overpriced. So a) don't buy a property you can't afford and b) don't pay more for a property than it's worth!

However, be aware also of the risk of your current position. Your LL is losing money. The rent apparantly does not cover his mortgage (and that's before the cost of the central heating breaking down etc). And he can't sell because he's in negative equity.

Eventually, maybe next week maybe in 6 months, he's going to default on the mortgage and the lender will repossess the property - leaving you homeless.

So a) keep an eye on the post for letters to 'The Occupier' or letters to the LL from a bank and b) start looking for a new place to live.

satchmeister

G_M wrote: »

Why would you want to pay so much above the market rate? The property is overpriced. So a) don't buy a property you can't afford and b) don't pay more for a property than it's worth!

However, be aware also of the risk of your current position. Your LL is losing money. The rent apparantly does not cover his mortgage (and that's before the cost of the central heating breaking down etc). And he can't sell because he's in negative equity.

Eventually, maybe next week maybe in 6 months, he's going to default on the mortgage and the lender will repossess the property - leaving you homeless.

So a) keep an eye on the post for letters to 'The Occupier' or letters to the LL from a bank and b) start looking for a new place to live.

I would agree with this assessment. The LL could not sell last year at 270k, needs 286k. Is now in a worse financial position than last year unless he earns enough to meet all the obligations, but with NE seems v unlikely. No mug will buy it at 286k or 270k and last resort is the T.

poppysarah

Danjames90 wrote: »

10% for a deposit as I would only be able to get a 90% mortgage.

My advice would be to not get a mortgage.

You rent whilst you rent out your own property - does this make financial sense still.

TonyMMM

You won't get the mortgage you need to but at that price anyway , because the valuation is not going to come back above the market price ... and could be a lot less.

He is trying to get you to take on his negative equity, which would be crazy. You are in a potentially strong position here - don't throw it away.

Danjames90

G_M wrote: »

Why would you want to pay so much above the market rate? The property is overpriced. So a) don't buy a property you can't afford and b) don't pay more for a property than it's worth!

However, be aware also of the risk of your current position. Your LL is losing money. The rent apparantly does not cover his mortgage (and that's before the cost of the central heating breaking down etc). And he can't sell because he's in negative equity.

Eventually, maybe next week maybe in 6 months, he's going to default on the mortgage and the lender will repossess the property - leaving you homeless.

So a) keep an eye on the post for letters to 'The Occupier' or letters to the LL from a bank and b) start looking for a new place to live.

I am willing to pay more to stay there as its a great house with a lot of potential and my family are really happy there, that's worth the extra for me.

If the LL defaults will the bank kick me out? Will they not offer it to me at a knocked down rate?

poppysarah

Danjames90 wrote: »

I am willing to pay more to stay there as its a great house with a lot of potential and my family are really happy there, that's worth the extra for me.

If the LL defaults will the bank kick me out? Will they not offer it to me at a knocked down rate?

I suggest you put your postcode into rightmove. search 1/4 mile around and see what pops up and at what price.

get property bee installed and see what's not been selling.

If he doesn't pay his mortgage you would need to speak to CAB about your rights to stay in the property./.. but they'd want to sell it and chances are you'd get it for less than he wants for it. (by a long way)

I seriously think you are fixating on this property and that you think 50k you don't have is worth it to stay there.

If you peed money then maybe. But you won't get a mortgage for it without a deposit and you'd need to make sure your rental meets it's BTL mortgage details.

Danjames90

TonyMMM wrote: »

You won't get the mortgage you need to but at that price anyway , because the valuation is not going to come back above the market price ... and could be a lot less.

He is trying to get you to take on his negative equity, which would be crazy. You are in a potentially strong position here - don't throw it away.

Thanks for the advice. It all makes sense and I know what your saying is right, I am following my heart and not my head.

BadgerFace_2

At the end of the day, it isn't going to happen, because, whilst you are able to be stupid with money you DO have...The bank isn't going to let you be stupid with their money.

Danjames90

BadgerFace wrote: »

At the end of the day, it isn't going to happen, because, whilst you are able to be stupid with money you DO have...The bank isn't going to let you be stupid with their money.

You are right....