House for sale with leased boiler

sal_III

When does the lease expires? And is there a final lump payment expected? If it only runs for 1-2 more years and there is no final lump sum payment, maybe you can negotiate with the Vendor to take on the lease if they knock down the total outstanding payments, so you are not out of pocket. If it ends up better for both of you than them paying £5k

There is also a question what happens with the boiler at the end of the lease. It's a mine field but if you really like the property and the Vendor can't afford the £5k (because for example they are overstretched buying their new property) it might be an option.

SSW83

To update, the final settlement fee is actually £2k. Also, the £38 per month does include servicing, but I get my boiler servicing from Homeserve for just £4.99 per month. I am trying to find out the length left on the lease, and whether there is a lump sum to pay at the end, as we are trying to negotiate this into the sale price of the house. I'm kindly attempting to inform the seller that nobody in their right mind would pay full asking price and take over a boiler lease. Hopefully they will see it that way too!

Thanks all for your advice.

Smodlet

SSW83 wrote: »

To update, the final settlement fee is actually £2k. Also, the £38 per month does include servicing, but I get my boiler servicing from Homeserve for just £4.99 per month. I am trying to find out the length left on the lease, and whether there is a lump sum to pay at the end, as we are trying to negotiate this into the sale price of the house. I'm kindly attempting to inform the seller that nobody in their right mind would pay full asking price and take over a boiler lease. Hopefully they will see it that way too!

Thanks all for your advice.

Yes, please do not be swayed. I obviously don't know the terms of this lease but do know of one company who do this boiler for life thingy. Under the terms of their agreement, you get a "free" upgrade in 10 years' time, about the time combi boilers die anyway. Then they've got you for another 10 years.

Keep_pedalling

Why do you even need negotiate? The sellers either have to stump up the £2k or keep paying £38pm. The problem is 100% the sellers.

eddddy

Keep_pedalling wrote: »

Why do you even need negotiate? The sellers either have to stump up the £2k or keep paying £38pm. The problem is 100% the sellers.

Not really.

If the OP really likes the house and really wants to buy it, but...

...the seller says they will only sell to somebody who takes over the boiler lease...

Then tactful negotiation is often the best way forward.

Confrontation, ultimatums, etc often just result result in retaliation.

AdrianC

Smodlet wrote: »

Yes, please do not be swayed. I obviously don't know the terms of this lease but do know of one company who do this boiler for life thingy. Under the terms of their agreement, you get a "free" upgrade in 10 years' time, about the time combi boilers die anyway. Then they've got you for another 10 years.

£4,500 for a new boiler every decade, with servicing and breakdown cover for the entirety of the period.

It's not ruinously unreasonable.

Mind you, a decent combi will last a heck of a lot longer than a decade.

Smodlet

AdrianC wrote: »

£4,500 for a new boiler every decade, with servicing and breakdown cover for the entirety of the period.

It's not ruinously unreasonable.

Mind you, a decent combi will last a heck of a lot longer than a decade.

It is also incredibly beatable, AdrianC. Why would you need to pay for servicing on top when any half-way decent new boiler comes with at least a 5 year warranty? If you jump through sufficient hoops, you can get the full 10 years.

No, it is a lousy deal but one I actually considered when I was desperate and did not think I could obtain sufficient "decent" credit to just buy a boiler. It turned out I was wrong and, thanks to this site, I managed to get a 0% credit card for over 2 years with a sufficient limit to pay for the lot. Not one penny paid in interest. MSE rocks.

AdrianC

Oh, sure - I wouldn't be paying an all-inclusive deal like that. But, f'rinstance, to smooth cashflow on a leveraged BtL...?

Smodlet

AdrianC wrote: »

Oh, sure - I wouldn't be paying an all-inclusive deal like that. But, f'rinstance, to smooth cashflow on a leveraged BtL...?

Sorry, whoosh. Don't understand. A few years ago I thought I might be in a position where it was either freeze or succumb to this sshh but, thank goodness, I was wrong. It turns out, however crap your income is, if you are careful with money, people will lend (some money) to you because they think (correctly, in my case) you will pay it back; I did. I always do. I hate debt with a passion; it's my generation's mentality, I think and I am glad I feel that way.