Buying the house we're renting

Faloola_Chong

Just found that LLs paid £365000 in January for their new house, which was marketed at £410000 - so I shan't be worrying any more that putting in a low offer might cause offence!

Hooray for the new Rightmove Price Comparison Reports!

Faloola_Chong

So...got a RICS valuation...£275K

Offered £265K

Agents come back and say landlords will accept £275K and that's very generous of them considering the EA's valuation was £295K :rotfl:

Hey ho

Yorkie1

Only you know whether you are prepared to pay the full valuation figure.

If not, then keep saving madly for your own place and if the timing works out, move when your 12 months are up next September (or earlier if there's a break clause).

Faloola_Chong

So now had the mortgage valuation done, and this surveyor agrees with my original thought that the property was way overvalued compared with similar ones nearby and valued it at £250000

As far as the mortgage goes this is still within the same LTV so maybe won't be a problem

So now we have

EA valuation £295K
Independent RICS valuation £275K
Offer £275K
Mortgage valuation £250K

What now? (looks like I'm going to be renting a while longer I guess as I can't see the landlords accepting a reduced offer). Bye-bye survey fees, thank goodness I didn't pay any arrangement fees...

duchy

I'd send them the mortgage valuation -if you can't get a mortgage for their higher figure-neither can anyone else. Might give them food for thought.
They may rethink-or they may decide to sit it out . You won't know til you try.

Wobblydeb

Faloola_Chong wrote: »

So...got a RICS valuation...£275K

Offered £265K

Agents come back and say landlords will accept £275K and that's very generous of them considering the EA's valuation was £295K :rotfl:

Hey ho

Faloola_Chong wrote: »

So now had the mortgage valuation done, and this surveyor agrees with my original thought that the property was way overvalued compared with similar ones nearby and valued it at £250000

Just wanted to say thanks for coming back and giving an update. It's food for thought as we're in a similar situation ..... except we prompted our LL to put our (rented) house on the market! I think it is overpriced but it's a scary waiting game to see if every other buyer agrees! :eek:

somethingcorporate

Do they have any motivation to sell?

Otherwise since they a) have a good tenant and b) getting rental income unless you make an offer they will accept they will just sit tight until the house market turns around.

Faloola_Chong

Thanks everyone

I think that the landlords are motivated to an extent to sell as they bought themselves a new place at the beginning of the year

Presumably they're thinking prices may well fall and they may not get as much for the place I'm in in the future, so they may as well sell it now and pay off as much as they can on their new place

But yes, equally they could just carry on collecting the rent...

Faloola_Chong

Landlords accepted reduced offer of £265000

I realise that's still quite generous of me, but hey! I'm a generous guy!

bristol_pilot

Given the stamp duty threshold at £250k, many properties in the £250k-£275k range are being beaten down to £250k so I'm not surprised the LL accepted your offer. You are clearly happy to pay the extra £15k plus the extra tax as you won't have to move and you know the property. A win-win situation, well done.