Selling to tenant

Ojb

If a tenant was to look into buying the property from the landlord with the proper worth 200k how much deposit would they need? They just rent and don't own anything else and have an ok job.
Then what would the mortgage payments be roughly compared to the rent?
Tenant has said they can't afford to buy but maybe they aren't aware of all the schemes available ?

Caz3121

Ojb wrote: »

Tenant has said they can't afford to buy but maybe they aren't aware of all the schemes available ?

maybe they don't want to buy....ball park, £20k deposit and £40k income to get mortgage

Ojb

They said they would love to buy but can't afford. Is there help to buy scheme still going ?

AdrianC

Ojb wrote: »

If a tenant was to look into buying the property from the landlord with the proper worth 200k how much deposit would they need? They just rent and don't own anything else and have an ok job.
Then what would the mortgage payments be roughly compared to the rent?
Tenant has said they can't afford to buy but maybe they aren't aware of all the schemes available ?

Just the same as buying any other £200k property.

95% LtV mortgage - £190k borrowed, but high rates and need extremely good credit record.
90% LtV mortgage - £180k borrowed, rates start to improve from here down.
Mortgage repayment calculator - https://www.moneysavingexpert.com/mortgages/mortgage-rate-calculator/
Mortgage rate best-buy - https://www.moneysavingexpert.com/mortgages/best-buys/
Work on 4x salary, and you're in the right ball-park.

"Schemes available" are minimal for a non-new-build property.

middleclassbutpoor

Only on new builds.

tlc678910

If the landlord were willing to let them buy the property for cheaper than it's market value they could look into a purchase with gifted equity (as the deposit). The lenders that would allow this would be limited and so a mortgage broker would be best.
Tlc

BrassicWoman

The landlord could give them the 1.5% they won't be paying an estate agent for starters.... and the grand they won't be spending on redecorating.. and the three months rent they won't have void if the tenant buys


4k for avoiding hassle / risk/ eviction proceedings sounds fair.

saajan_12

Of course the tenant will also increase their offer by the savings from not paying
* moving costs
* 3 mths overlapping rent / mortgage
* 3 mths overlapping utilities & council tax
* deeper survey beyond those needed by mortgage co, since tenant knows the pitfalls of the property

So all in they settle on market value

lookstraightahead

saajan_12 wrote: »

Of course the tenant will also increase their offer by the savings from not paying
* moving costs
* 3 mths overlapping rent / mortgage
* 3 mths overlapping utilities & council tax
* deeper survey beyond those needed by mortgage co, since tenant knows the pitfalls of the property

So all in they settle on market value

Except that as a tenant you could just decide not to move, of course. I would want a discount as a tenant.