Approaching landlord to buy rented property

timeism0ney

Cakeguts wrote: »

if he sells he has to buy something else which will cost him more money.

Why more though? He'd probably have no trouble buying another property in a derelict state to do it up again to earn more money. It sort of depends which business he's in - rental or renovation, or both. I don't know the answer to this question but I'd expect someone in property development to be involved in both (i.e. renovate in order to rent some and sell some). But that's just my thinking.

Cakeguts wrote: »

It may also now be worth more than £180k so if he did decide to sell it he might want more than £180k for it. The one down the street may be £180k because that is the price of them without the upgrades.

It may be worth more but I'd be surprised if any lender would value it at more than 180k because of what similar houses in the area are valued at.

timeism0ney

deannatrois wrote: »

Hmm, if houses sell within hours, why are you waiting til next week to see the alternative house you are viewing next week? If houses sell so quickly I'd be pulling out all stops to get as early a viewing as possible.

I meant rentals go within hours. Sale is a longer process in so many ways so I don't think selling a house within hours is possible (what would that even mean).

markin

A house can go to a bidding war and then SSTC within hours and often would in boom times.




I would bet he would want 190K, and in 3 years time he likely would get it or more.

need_an_answer

You've nothing to lose by asking to be considered should the LL ever decide to sell and you are in the position to buy...but please don't take it personally if the LL thanks you for your letter but says it not for sale.


Some LL's are happy to consider selling but they tend to fall in the category of those who don't see it as a business venture,by the sounds of it your LL operates his property as a business and may not even be in the market to consider selling at market value.

steampowered

There is nothing to lose by asking your landlord whether he might be interested in selling to you.

Worst case scenario is the landlord says "no thanks, I'd like to continue renting it".

As others have said, it sounds like he bought this house to rent out, which would mean he is unlikely to want to sell unless you made an offer at above market value. But you won't unless you ask.

Bossypants

timeism0ney wrote: »

Why more though? He'd probably have no trouble buying another property in a derelict state to do it up again to earn more money. It sort of depends which business he's in - rental or renovation, or both. I don't know the answer to this question but I'd expect someone in property development to be involved in both (i.e. renovate in order to rent some and sell some). But that's just my thinking.

Bear in mind that he'd get hit by the additional stamp duty as well. Between that, legal fees and renovation costs, he'd do well to break even when all is said and done. Bargain properties are usually bargains for a reason: The bigger the discount, the more labour and materials it will take to correct whatever is wrong with it to any kind of decent standard.