Buying a property from a close friend. Where will save money?

Heisenberg87_2

Long story short a friend who is very close to the family is thinking of selling his place and to help myself and my partner he is willing to sell under the market value.

It has been valued at £210,000 and he is willing to let us have it at £185,000. What I was wondering how much we will save from all the legal fee's etc... he has been renting it out so we know that it currently has no issues etc...

G_M

1) are you sure the tenants will leave? When?

2) if you totally trust him, and know the property backwards, forget the searches, forget the legal Title enquiries, forget the solicitor - do the basic conveyancing yourself.

3) unless of course you are getting a mortgage in which case the lender will insist!

4) Oh - and forget the survey too. After all, you know what condition the property is in don't you....?

EverGreen_2

Business is business. Rights are rights. If disputes come from the doors friendship runs away from the windows.


Get the property evaluated and inspected (survey). If that is not fair in your friend's eyes then toughhhhhhhh !!!

I_have_spoken

Wait until the day before exchange, then gazunder him by £30k

kinger101

Heisenberg87 wrote: »

he has been renting it out so we know that it currently has no issues etc...

I'm not sure this follows. Aside from G_M's point regarding when the tenants may actually leave, the current owner may not be aware of problems as they are no longer resident.

Of course, the advice usually given is to incur no legal expenses until the property is vacant. Don't know if this puts a spanner in the works.

Heisenberg87_2

G_M wrote: »

1) are you sure the tenants will leave? When?

2) if you totally trust him, and know the property backwards, forget the searches, forget the legal Title enquiries, forget the solicitor - do the basic conveyancing yourself.

3) unless of course you are getting a mortgage in which case the lender will insist!

4) Oh - and forget the survey too. After all, you know what condition the property is in don't you....?

1) 100%

2) This guy is like a brother and has helped the family out on many occasions.

3) We would be getting a mortgage

4) We do know the exact state of it..

Thanks for your help...

Heisenberg87_2

kinger101 wrote: »

I'm not sure this follows. Aside from G_M's point regarding when the tenants may actually leave, the current owner may not be aware of problems as they are no longer resident.

Of course, the advice usually given is to incur no legal expenses until the property is vacant. Don't know if this puts a spanner in the works.

I know they spent a bit of money in checks etc... when the tents were away on a 2 week holiday. The state of the property won't be in any question.

I was just hoping we could a £1000 or 2!

rosie383

In a private sale such as this it is the vendor who saves on EA fees, not the buyer. If you weren't getting a mortgage then you could save on some searches but as you are, forget that. From what you say you will be saving many thousands compared to if you bought a different house in the same location. Be grateful for that. That's where your big saving is already.

wiseguy80

Even if he is like a brother, I would say you should do all necessary searches, title deed checks, environment searches, etc. There might be things which even he is not aware of. At the end of the day it is your money.

You could both arrange to use the same solicitor. This way the process would be quicker. He would save money in estate agents not sure what you will get in that.

I would also advise to check the fair value of the property. He must have evaluated it but check it for yourself as well. Also be frank and ask the reason why he is selling?

davidmcn

wiseguy80 wrote: »

You could both arrange to use the same solicitor.

Not with a mortgage (or at least, the lender would need a separate solicitor from the seller).

rosie383

davidmcn wrote: »

Not with a mortgage (or at least, the lender would need a separate solicitor from the seller).

You can both use the same conveyancing firm but different solicitors.