Landlord selling, any possibility of us buying?

learningaboutmoney3

Our landlord has just told us he is looking to sell the property we have rented for the past 4 years.

We've got an appointment with a mortgage advisor this week but wondering if anyone has any ideas on whether it might be an outright 'no' or if we may have a chance?

Here is our history:

Hubby
- 3 defaults due to come off Dec, Jan & Feb
- CCJ for £900 registered sept 2012 now settled

1x credit builder card limit £500
1x catalogue account limit £150

Me
- 6 defaults due to come off nov, jan, june 15, august 15, april 16, aug 17 all settled bar the last one but parents will lend me the money to pay it off if it makes a difference.
- CCJ (joint with hubby) for £900 sept 12 satisfied

2x credit builder cards limits £200 and £250

We were able to pay off our previous debts due to a pay out. We thought it best to pay off our debts rather than use that money toward a deposit.

The problems are from when I gave up full time work to go back to university and retrain.

Since I started regular paid employment we have had a good income and paid bills on time. We have also paid rent in full and on time for the past 6 years.

My parents are looking to give us the deposit.

LL is asking for £149000 (we've had it valued lower but don't know if we dare offer lower if we could even get a mortgage)

Deposit would be around 25-30%

I've had a look at precise mortgages and think we meet their criteria but am I just giving myself false hope?

Thank you in advance for any advice.

ACG

Precise are one of 2 lenders who would probably consider this, theyre also probably the cheapest.

Rates arnt going to be great but they get you what you want.

learningaboutmoney3

Thank you. I guess the other is GE Money?

ACG

Oh god no! I dont even consider them to be a lender. I dont think they actually have money to lend judging by what they ask for.

But im not sure you would fit criteria with them anyway as the recent default/ccj are too recent... unless their criteria has changed since I last looked at them (which could be the case as its been a while).

mjm3346

learningaboutmoney3 wrote: »

LL is asking for £149000 (we've had it valued lower but don't know if we dare offer lower if we could even get a mortgage)

You should get a lower price than anyone else - your buying gives the landlord rental income without a break all the way to completition and avoids any possible problems with getting you out prior to sale (unless selling with you as sitting tenants but that would normally limit the potential market considerably).

learningaboutmoney3

Glad I asked!

If only this had happened in a year or two! Our plan was not to apply for a mortgage until we had saved our own deposit and our credit files were clean

If we were able to wait another 6 weeks until the CCJ was 2 years old would that make a difference? Is there anything else we could do to improve our chances of being considered at least?

Thank you so much for your help.

learningaboutmoney3

mjm3346 wrote: »

You should get a lower price than anyone else - your buying gives the landlord rental income without a break all the way to completition and avoids any possible problems with getting you out prior to sale.

I was hoping to put this to him. He is the partner of a relative and said we could rent this house until we could afford to buy. Stupidly I thought that as we were family he would honour this but I realise people's situations change.

We have done some improvements to the property ie, decorated, new carpets, put up a fence and improved the garden. However there are other improvements that need to be made which would cost him.

Also he will make £49000 on this property so will be liable for capital gains tax I think.

Overall I think the amount he would save by a) selling to us and b). lowering his asking price may help us persuade him.
I have no idea what to offer though! The estate agent I had round valued it at around £144K but said the lowest to accept would be £135K.

Oh and the guy that valued it for him is his friend....

Any advice on this?

ViolaLass

learningaboutmoney3 wrote: »

I was hoping to put this to him. He is the partner of a relative and said we could rent this house until we could afford to buy. Stupidly I thought that as we were family he would honour this but I realise people's situations change.

We have done some improvements to the property ie, decorated, new carpets, put up a fence and improved the garden. However there are other improvements that need to be made which would cost him.

Also he will make £49000 on this property so will be liable for capital gains tax I think.

Overall I think the amount he would save by a) selling to us and b). lowering his asking price may help us persuade him.
I have no idea what to offer though! The estate agent I had round valued it at around £144K but said the lowest to accept would be £135K.

Oh and the guy that valued it for him is his friend....

Any advice on this?

Point a is valid but point b doesn't add up. Yes, selling it for less would reduce his tax bill but it would also reduce his profit by far more.

learningaboutmoney3

ViolaLass wrote: »

Point a is valid but point b doesn't add up. Yes, selling it for less would reduce his tax bill but it would also reduce his profit by far more.

Ahhh yes I see what you mean! I hadn't gone on to do the end of the calculation.

learningaboutmoney3

Update on our situation:

We have been to see the broker, she thinks she will be able to help us but has advised us to wait a few more weeks until the CCJ is over 2 years old.

Have chased up some of the defaults and it turns out I have 4 rather than 6 (not that it makes that much difference!)
1 will come off in nov but the other 2 not until june & august next year and the final one aug 2017.

Looks as if m&d can't get as much money as originally thought so deposit would be 15%, 20% at max.

ACG

Your broker sounds like they know what they are doing - by waiting it probably opens you up to more and possibly better deals.

It also shows they are looking at the options, it would have been easy for them to take the business and try and place it asap to get their commission sooner.