Buying out my landlord - how to approach it

res-w08

I'm living in a lovely two bed flat in London, at a very reasonable rent. I've recently inherited some money, and I think it puts me at the very outer edges of being able to afford to buy. What I would really like to do is buy the flat I'm living in. My landlord was originally trying to sell it, he only rented it to me and my housemate when he struggled to get the price he wanted. I think I could afford it at the price he tried to sell at last year (spring 2014) but the value will certainly have gone up since then, possibly quite substantially.

I want to broach the subject with my landlord, but I don't know what to do first. Should I speak to mortgage lenders to check that I'm not living in fantasy land thinking I could get a mortgage? Or should I speak to the landlord first, to see if he actually does still want to sell?

Any advice very much appreciated!
Thanks!

theartfullodger

Get a quick check that a lender will probably loan you enough to buy then approach landlord - direct, not through agent - and say is he interested in selling without having to pay estate agent fees.

i.e. dangle a carrot...

pmlindyloo

theartfullodger wrote: »

Get a quick check that a lender will probably loan you enough to buy then approach landlord - direct, not through agent - and say is he interested in selling without having to pay estate agent fees.

i.e. dangle a carrot...

Agree, check that you can get a mortgage first, then approach the landlord.

Just a 'heads up' - if your LL is using a letting agent then there is usually a clause in the contract that the landlord will pay the letting agent a fee if he/she sells to a tenant (ours was 1%)

Hoploz

You could always just send him a letter with an offer?
Definitely look into your finances first though. He'd be really annoyed if you led him up the garden path I'd think. And you never know you might even be able to borrow a bit more than you thought before?

pmlindyloo

Hoploz wrote: »

You could always just send him a letter with an offer?
Definitely look into your finances first though. He'd be really annoyed if you led him up the garden path I'd think. And you never know you might even be able to borrow a bit more than you thought before?

Personally I wouldn't send a letter with an offer.

Once your finances are sorted then telephone and/or write and say that if he wanted to sell then you might be interested in buying. Then if he says 'yes' then ask if he had a price in mind.

After that it is down to negotiation just like any other house sale. So do your homework and look and see if there are any comparable flats that have sold recently in your area.

We bought from our landlord and didn't get a bargain but were happy to pay that little bit more knowing that it was pretty much our perfect house.

theartfullodger

pmlindyloo wrote: »

A...

Just a 'heads up' - if your LL is using a letting agent then there is usually a clause in the contract that the landlord will pay the letting agent a fee if he/she sells to a tenant (ours was 1%)

Which is probably/possibly unenforceable...

res-w08

Thanks! Wow, didn't expect answers so quickly! Ok, I'll get the finances in place first. Luckily there's no letting agent, we rent directly from the LL - so that cuts out one hurdle! Thanks!

stator

You can get an Agreement in Principle from a mortgage lender to prove you are serious

kinger101

res-w08 wrote: »

My landlord was originally trying to sell it, he only rented it to me and my housemate when he struggled to get the price he wanted. I think I could afford it at the price he tried to sell at last year (spring 2014) but the value will certainly have gone up since then, possibly quite substantially!

Bear in mind that this is likely an indication that what he originally wanted for it may have been unrealistic. Also, do you know how long the remaining lease on the property is?

DREKLY

theartfullodger wrote: »

Which is probably/possibly unenforceable...

TAD - what makes you say this, you have had experience of agents trying to enforce their percentage fee ?

Moomum

I believe this was made unenforceable in Aug 2014 after a case with Foxtons, we are renting our house out now and the letting agent removed this clause at request.