Buying our rented house

Fireflyaway

We moved into our rented house 1 year ago on a 2 year tenancy. Always planned to buy a house nearby after the 2 years finishes. However we really like it here. The house is homely, has all we need and we like the location.
Had the idea of writing to the landlord to ask if he would consider selling to us. He may say no and that's that, but I'm wondering what we could do to make the deal attractive? Offer to pay his legal fees? Offer a lump sum in advance if he agrees to sell once the rental agreement ends? Sort of like a rent to buy agreement.
I like the idea of not having to house hunt, move again etc!

davidmcn

Just keep it simple and agree a price. He'll be saving on estate agency fees anyway.

dimbo61

He will also get paid Rent right up to the day you exchange so WIN WIN for him.
You save on moving costs and know what you are getting and location,neighbours etc.
He saves a couple of thousands ££££ in estate agents fee.
Does the property need any work? New kitchen or bathroom ?

Fireflyaway

Thanks guys. Its pretty good condition but I'd maybe change the carpets which are a bit stained and the bathroom tiles need re grouting but that's it.
I'm wondering how to word the proposal. If he didn't want to sell immediately we would wait a bit and just save to put a bigger deposit down.
I know he has a few properties and it might not be his plan to sell. I do know the approximate price now is 100k more than what he paid.

Cakeguts

If he says no. Then nothing will make the deal attractive. How much he has made on it is nothing to do with anything. What is important to him is how easily it rents and his return.

If he sells he will have to pay CGT and an extra 3% stamp duty if he wants to buy another house to replace it. There isn't anything that you can offer to help him with these.

G_M

Either he'll be interested in selling, or he'll want to keep the property.

If the former, then it's a question of agreeing a fair price (and he'll probably save on estate agent fees - if he uses a leting agent, his contract might include a payment for 'introducing' you as a buyer...,)

If th latter, notthing you can do is likely to change his mind.

Fireflyaway

Yes I suppose its all down to his own personal long term plans. It rents well. The previous people were here 5 years. Rent is £1150 a month. Was just thinking the rise in value would see him make 100k plus which might mean our offer is more attractive than if the property was worth the same or less. However he might own it outright or might not. I'm not going to know his position till I ask I guess!

AdrianC

"offer a lump sum in advance"?

Umm, yes. That's how buying a house works. You pay the entire value of the house when you buy it. You might need to borrow the money, but that's not the vendor's problem...

I assume you're planning on offering the fair open-market value of the place?

Cakeguts

Fireflyaway wrote: »

Yes I suppose its all down to his own personal long term plans. It rents well. The previous people were here 5 years. Rent is £1150 a month. Was just thinking the rise in value would see him make 100k plus which might mean our offer is more attractive than if the property was worth the same or less. However he might own it outright or might not. I'm not going to know his position till I ask I guess!

How do you know it has risen about £100k in value. I assume that you don't know what he paid for it?

Loanranger

Very easy to find out what he paid for it. Rightmove display sold prices going back almost twenty years.

Cakeguts

Loanranger wrote: »

Very easy to find out what he paid for it. Rightmove display sold prices going back almost twenty years.

True but how do you know that it has increased in value by £100k while he has owned it? Bearing in mind that we all know that a house is only worth what someone will pay for it and the landlord has owned this house for at least 6 years.