Landlord wants to sell. Given us first option

diddly74

As the title explains our landlord dropped the bomb 3 days before Christmas that he want to sell the property we currently live in.

Our situation: We have been tennants for 6 years (since May 2010) after losing our home due to bankruptcy. Both my husband and I went bankcrupt in March 2010 and have been Discharged since early 2011. Bankruptcy is now off our credit reports - although some of the creditors are still on there because they don't seem to understand the rules and I need to send letters asking for our credit report to be cleaned. I understand this.
Credit reports checked monthly on Creditexpert, Noddle and Clearscore.
Hubby is employed full time and I am employed part time as a nurse and our total annual gross is around £37,750 and rent is currently £670 pm

Anyhoo - Needless to say it was a bit of a bombshell just before Christmas and I am worried about getting a mortgage. Oh and we haven't got a deposit saved.

House valued by 1 agent in town(between 140-150) and one on line (141) and I know landlord had 140-150 in mind having had a conversation with him. House is link detached.
Land reg sale prices for last 5 houses in our road over last 4 years give average of £128, and house in next road along (semi detached) has sold at £122.

What I am looking for is any advice your guys can give me about getting a mortgage. We have lived here 6years so know the house and know what jobs need doing, but I haven't bought a house in nearly 20 years, whats the best negotiation tatics (oh where are Phil and Kirstie when you need em!! lol)

So guys - where do I start?

Sorry such a long post it is a particularly tricky position.

tom9980

diddly74 wrote: »

As the title explains our landlord dropped the bomb 3 days before Christmas that he want to sell the property we currently live in.

Our situation: We have been tennants for 6 years (since May 2010) after losing our home due to bankruptcy. Both my husband and I went bankcrupt in March 2010 and have been Discharged since early 2011. Bankruptcy is now off our credit reports - although some of the creditors are still on there because they don't seem to understand the rules and I need to send letters asking for our credit report to be cleaned. I understand this.
Credit reports checked monthly on Creditexpert, Noddle and Clearscore.
Hubby is employed full time and I am employed part time as a nurse and our total annual gross is around £37,750 and rent is currently £670 pm

Anyhoo - Needless to say it was a bit of a bombshell just before Christmas and I am worried about getting a mortgage. Oh and we haven't got a deposit saved.

House valued by 1 agent in town(between 140-150) and one on line (141) and I know landlord had 140-150 in mind having had a conversation with him. House is link detached.
Land reg sale prices for last 5 houses in our road over last 4 years give average of £128, and house in next road along (semi detached) has sold at £122.

What I am looking for is any advice your guys can give me about getting a mortgage. We have lived here 6years so know the house and know what jobs need doing, but I haven't bought a house in nearly 20 years, whats the best negotiation tatics (oh where are Phil and Kirstie when you need em!! lol)

So guys - where do I start?

Sorry such a long post it is a particularly tricky position.

No Deposit? no mortgage it really is that simple.

JP1978

tom9980 wrote: »

No Deposit? no mortgage it really is that simple.

Yep, you will need a deposit and funds for legal fee's (hey, at least you dont need to pay any moving expenses).

However, there are some 100% mortgages on the market again, although one would imagine that you need a perfect of very good credit history for these.

Why not speak to a broker (one that earns their fee from the mortgage supplier and not you) and can cover whole of market to see what they say.

AnotherJoe

How can you afford a mortgage and the costs of running a house if you haven't been able to put any money aside for 5+ years despite, presumably, having a clean start with do debt?

dlmcr

No deposit and bankruptcy = no mortgage so no need to worry about buying anywhere. Wait a few years, save up and then look at buying a place.

mrginge

diddly74 wrote: »

So guys - where do I start?

You start by looking for a different rental and then saving a deposit.

The idea that you can buy this property is a pipe dream.

Silvertabby

How can you afford a mortgage and the costs of running a house if you haven't been able to put any money aside for 5+ years despite, presumably, having a clean start with do debt? Posted by AnotherJoe

100% mortgage (if you are able to get it) for £150,000 at 2% is much the same as the rent you are currently paying. You'd have nothing left for essential repairs, any increase in interest rates, etc. I know this isn't the answer you are looking for but, realistically, I can't see how you can afford this house now.

As the landlord has given you first refusal, he obviously doesn't want the property for a family member to live in. Fingers crossed for you that you will be lucky and he will sell to another BTL who will continue your tenancy. Then save like mad. Any chance you could increase your hours?

diddly74

Thanks for your opinions so far. One thing I did forget to put in my original spiel is that I could have up to 12 months to save up/sort this out. Landlord has stated he is not in a rush but .......

Oh and we have some savings just not a huge amount.

Cakeguts

You need to find a cheaper house to rent and then start saving for a deposit. If a semi detached in your areas sold for 122k you should be able to find a house with a lower rent than £670 which will allow you to save for a deposit. It will also leave your landlord free to sell the house you are living in now.

pinkshoes

With your income, you would be having a joint take home pay of around £2500 a month i think?

As rent is only a small proportion of this, what is the rest being spent on??

I would say as you have no deposit saved, then this is not the time for you to buy.

You would need £14000 deposit, then enough for legal fees etc... how long would this take you to save?

AdrianC

diddly74 wrote: »

Thanks for your opinions so far. One thing I did forget to put in my original spiel is that I could have up to 12 months to save up/sort this out. Landlord has stated he is not in a rush but .......

Oh and we have some savings just not a huge amount.

Realistically, you want at LEAST 5% deposit - £7k - plus a few grand for fees and expenses. Call it £10k in round numbers.

In the six years since your bankruptcy, you've not saved much. Now you're looking to save a quarter of your joint gross income, in just one year. You'd need to be saving £150/mo MORE than your current rent...