Buying from private landlord with no deposit

Cakeguts

Simonr66 wrote: »

Because it would basically be the same as a Vendor gifted deposit, I did this a few years ago. I agreed a purchase price then added added 5% and said the vendor is gifting the deposit. Hence me saying AGREE a purchase price and then add 10% making sure the value is in line with similar properties in the area. Its called negotiation and anyway the landlord may not want to sell in the first place


Seems really simple to me

It doesn't to me. If I were to sell one of our houses for £198,000 instead of £180,000 which is the going rate I think a bank would notice that it was out of line with anything else selling in that area. It gets more out of line the more expensive the property is. It might only work if the 10% was something like £7000 so a cheap house. Many landlords do not own houses this cheap and it could also be argued that many tenants would not want to buy a cheap house from their landlord when they could probably get something better on the open market.


My suspicion is that this idea may be something to do with the old rent act tenants rather than modern AST landlords.

agrinnall

gingercordial wrote: »

But then as soon as the landlord sees that valuation they will know that they could get 10% more on the open market so why sell to OP at what they now know to be a discount?

But they can't sell on the open market because the property is tenanted, they can only sell to someone else who wishes to be a LL unless they are prepared to evict the OP before marketing (and they'll then have a void period). This is why rental properties are usually cheaper than owner occupied ones.