Buying flat

coolaltaf

Hello guys
Please help me as I require some basic questions in buying a flat in London by cash. I am leaving in the same flat for the last 7 years and now willing to buy the same one bed flat. Property price £120000.00.
My landlord told me that there is £110,000 mortgage is still remaining on the property. As am a first of buyer and have some questions about this, hope you guys will help me.
I would like to pay £90,000 cash and rest I will take 6 months time to pay the rest, my question is as am paying 80% of the money will the monthly mortgage price will reduce? (As I will not be paying any rent towards the property and will only pay whatever the difference in the mortgage amount)If yes, how will i sort this issue and is there anyone who has gone through the same situation? Is there any recommend solicitor or conveyancer who can assist in the situation.
Thank you in advance
Aijaz.

Bantex_2

Landlord will have to pay off his mortgage before or at point of sale.

beecher2

You'll need to either raise a mortgage for the remaining £30,000, or wait six months to buy the house. As Bantex says, the existing mortgage will have to be paid off when you buy the property.

Snakey

You sound confused.

If he sells to you, you need to find £120k to give to him.

You: You have £90k in your pocket, and so you will need to take out a mortgage for the remaining £30k unless you have friends or family who will lend to you informally. You will pay this back, with interest, over whatever timescale you agree with the lender. You should be able to get a low interest rate as your "loan to value" ratio will be just 25%.

Him: He takes £120k from you, £110k goes to pay off his mortgage and the other £10k is his to keep. He no longer owns the property, he no longer has a mortgage, and you no longer pay him anything (rent or otherwise).

You will both need (separate) solicitors, you will each have to pay legal fees to your own solicitor, and you will have to pay a survey fee to make sure the property is worth what you are paying for it (the lender will want this even if you are happy to take the chance).

Hope this helps!

Pixie5740

Your landlord has a mortgage (how he has a BTL mortgage of £110,000 on a property valued at £120,000 I'm not sure), the mortgage won't be transferred to you. You will need to pay the vendor (your landlord) £120,000 at the point of sale, either by waiting and saving until you have the full £120,000 or by using the £90,000 you already have and borrowing the remaining £30,000.

Out of interest, how do you know the property is worth £120,000?