Buying my rental property

penguin10

Having rented the same property for about 5 years, I am contemplating trying to buy it.
I would prefer to know for sure that I can get a mortgage for it before approaching the landlord (as I suspect he might decide to sell it anyway and I would then have to leave if I couldn't buy it!)
I am 99% sure he will sell and the price will probably be affordable to me.
I have a DIP already.
Can I start the mortgage process to get an actual offer without incurring any costs and without involving the landlord?  
Ideally, I would love to get an actual offer and then approach the landlord and take it from there.  All subject to survey I guess.
I am planning on using a broker - London Country.
Advice would be appreciated.
Thanks

AdrianC

penguin10 said:

I have a DIP already.
Can I start the mortgage process to get an actual offer without incurring any costs and without involving the landlord?

You already have the AiP, so you have the theoretical "Yep, we're happy with lending you this amount".
The next step is for them to be happy with the actual property - and for that, you'll need them to liase with the solicitor (for the draft contract and searches) and surveyor (for the valuation).

So you're already as far as you'll get without the sale being underway.

penguin10

Thanks
So I can't apply for the actual mortgage yet, get the valuation done, appoint a solicitor if need be but tell them not to carry out any work yet.

Then I get a firm mortgage offer on THIS house and can then talk to landlord and proceed with getting a survey done at that stage?

Sorry for all the possibly silly questions but I would like to know for 100% (or as close to that as possible) that I CAN get a mortgage before I ask if landlord will sell 

greatcrested

You would need to give your chosen mortgage lender the purchase price when applying, both for them to pass to their solicitorand for their Valuer/surveyor to value the property against.

[Deleted User]

You are really wasting your time until you know IF your landlord is selling and for how much.
if so - you are in a great position 

davidmcn

There's really no point in progressing further if you don't even know whether your landlord is interested in selling. It's certainly not a money-saving approach to start spending money on surveys, solicitors etc.

kasqueak

I bought the flat I rented years ago. I approached the landlord with a price which he agreed to. Saved him money on estate agent fees if he’d put it on open market. Also saved me money as no moving costs. I’d already got a mortgage in principle. Once he’d agreed to sell I instructed a solicitor, applied for the full mortgage and had the surveys done. Ended up living there another 5 yrs before I sold. Helped me take my first step on the ladder back in 2010. 

penguin10

Thanks - time for more thinking then!
I am scared of being in the position to approach landlord and then for me not being able to get the mortgage but the seed is sown with him and he decides to sell to someone else

Thanks for the help - much appreciated.

AdrianC

penguin10 said:

Thanks - time for more thinking then!
I am scared of being in the position to approach landlord and then for me not being able to get the mortgage but the seed is sown with him and he decides to sell to someone else

Assuming you've done your basic research as to the fair market value, and aren't being wildly optimistic, then you've got the AiP. You know that they're happy to lend YOU that much.

So if the actual property fails your lender's test, why would anybody else's lender be happy to lend? And why would you want to buy the place - or even live there - if it's unmortgageable because of some defect...?