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Landlord wishing to help tenant!!!!

111KAB
111KAB Posts: 3,645 Forumite
1,000 Posts Combo Breaker
in House buying, renting & selling
I own a house (not mortgaged) valued at c £158,000 where I have a responsible tenant who would love to buy the property however she just cannot raise the necessary deposit that the various building societies are demanding (i.e. £16,000) - they have all said that on her salary she is ok to meet the monthly payments. With suitable guarantees I may be prepared to short term loan her the deposit but then this would, say, only add to the asking price and effectivelly over value the house. Is there a way around this as I don't mind helping her out and moving on with the money to buy another investment property? PM me if you wish and TIA.

Comments

  • beecher2
    beecher2 Posts: 3,677 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    If she can afford a mortgage of £142,000 then she must have a wage of at least £40k so should be able to save. If you feel she could pay £16k back in the short term, why can't she save it in the short term?
  • 111KAB
    111KAB Posts: 3,645 Forumite
    1,000 Posts Combo Breaker
    beecher2 wrote: »
    If she can afford a mortgage of £142,000 then she must have a wage of at least £40k so should be able to save. If you feel she could pay £16k back in the short term, why can't she save it in the short term?

    Rent I charge her!.....plus other outgoings.
  • Alioth
    Alioth Posts: 207 Forumite
    If the house is valued at £158k, that's what the lenders will lend up to. They will not take the inflated asking price into account. Also, lenders require a saved or gifted deposit, and don't normally accept a loaned deposit.
  • poppysarah
    poppysarah Posts: 11,522 Forumite
    111KAB wrote: »
    Rent I charge her!.....plus other outgoings.


    So the rent is a lot dearer than the mortgage?

    Begs the question why you're selling I think.
  • sonastin
    sonastin Posts: 3,210 Forumite
    You could help her by reducing the rent so that she can save a deposit...
  • System
    System Posts: 178,354 Community Admin
    10,000 Posts Photogenic Name Dropper
    poppysarah wrote: »
    So the rent is a lot dearer than the mortgage?

    First words of the original post
    I own a house (not mortgaged)
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • nobblyned
    nobblyned Posts: 705 Forumite
    !!!!!! wrote: »
    First words of the original post

    More expensive than the tenants prospective mortgage, not more than the landlords mortgage.

    i.e. what makes the landlord think the tenant will be able to repay his loan if they can't save up for a deposit currently.
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