Landlord selling house

areia

hi sorry if this has been done. But not doing well emotionally at this.  Partner and I are yet again in a position of landlord selling the house we are renting. Weve only been in here 3 years. Decorated it lovely etc as from landlords mouth we could do as we please weve got about 8 years. Of course last week just less than 3 years in agent is round for measuring etc. Weve been given first refusal. Value 210k landlord has agreed a 5 k reduction. Agent said with right deal could get it down to 200k.  Now weve been given just a week in this current climate to say yes and provide proof. Before it goes on market.  ( We will be given 3 months notice under covid rules but there isnt a rental within our price range )  we strongly suspect a high st branch will give a flat no.   Ive tried online calculations and so far not found one that would depend on deposit. Im part time and on furlough till Sept and oh while a key worker earns around 20k .  We are ringimg around for family to help though im not sure they can. Is there any hope for a mortgage if we could get a half decent deposit.  Is it fair to give us only a week under current circumstances to be able to just go yes weve got x amount stashed somewhere for a deposit well buy the house. ( we clearly haven't) 

greatcrested

If you want to buy, go to an independant mortgage brker.

If you don't buy, you do not have toleave after the 3 months notice as

a) S21 Notices are often invalid. See S21 checklist (Is a S21 valid?)

b) S21 does not end the tenancy, only a court can - and that adds another 2? 3? 4? months on top of the 3

If you have a fixed term tenancy, the S21 3 months cannot end before the fixed term ends

Marketting and selling while you are theremay be difficult for the LL. It depends how cooperative you choose to be in allowing access to estate agents, potential buyers, surveyor etc etc......

Meanwhile you tenancy is unaffected unless/until proper notce is followed through, whether the property is owned by the current owner/landlord or a new owner/landlord.

areia

But does not a s21 effect how we rent elsewhere like credit score etc

areia

Also pending on how co operative we are. Im guessing agent will just allow themselves in for viewing. As often the case when it comes to dates set for boiler checks etc. They usually set a date with a foot note saying we give permission to enter the property if we can't be in 

AskAsk

they can offer any time limit they want to give you first offer to buy.  however to get you out as tenants is another matter.  it sounds like they are selling with tenants in place, but with the view of giving you notice to leave or even selling the house with tenants.  have you asked if they are selling the house with tenants?

if you are interested in buying, then get an estate agent to come round and value the property for you.  you will have to pay him as it isn't your house.  then speak to a mortgage broker or a bank to see how much mortgage you can raise.  do you have the 10% deposit?

areia

I've managed to talk to a broker. My landlord doesn't live in this country. But agent has tried to offer sell as buy to let. Landlord wants a quick sale and apparently a buy to let would be a selling at a reduced rate. Our broker said 15% ideally for minimum if we can. Just trying to get an idea of how much we would need. Can someone explain why monthly rents are higher than mortgage payments. We pay 850 a month at mo. But apparently how we pay our isnt taken into account

getmore4less

EA will value anything you let them, many  don't check who the owners are so won't know unless they already know or you tell them. 

AskAsk

selling as a BLT is not any cheaper.  it is only cheaper if they are selling with tenants in situ, in which case you stay on and have a new landlord.  rents can be higher than mortgage payments, but not necessarily so.  it all depends on how much the property cost and interest rates.  current interest rates are low, so mortgage payments are low.  if your landlord wants a fast sale, then you may be able to negotiate a decent discount 

greatcrested

areia said:

But does not a s21 effect how we rent elsewhere like credit score etc

No.

Also pending on how co operative we are. Im guessing agent will just allow themselves in for viewing. As often the case when it comes to dates set for boiler checks etc.

If you are not happy about them letting themselves in you should do two things:

1) put your decision regarding access in writing eg 'access only after agreement over date/time has been agreed', or 'only at weekends (or whenever) between 10 am and 1 pm (or whatever), or Never'. Use the address for the landlord for "serving notices" and copy the agent.

2) change the lock (keeping the old one to replace later) to protect your privacy and enforce your rights.

Can someone explain why monthly rents are higher than mortgage payments. We pay 850 a month at mo.

Rents are based primarily on supply and demand and local market rental prices.

Mortgage costs are based on lenders' interest rates (which in turn are dependant on BofE interest rates) and the amount borrowed.

AdrianC

areia said:

Value 210k landlord has agreed a 5 k reduction. Agent said with right deal could get it down to 200k.  Now weve been given just a week in this current climate to say yes and provide proof. Before it goes on market.  ( We will be given 3 months notice under covid rules but there isnt a rental within our price range )  we strongly suspect a high st branch will give a flat no.   Ive tried online calculations and so far not found one that would depend on deposit. Im part time and on furlough till Sept and oh while a key worker earns around 20k

Most lenders are offering maximum 85% LtV, so you would need £30k+ equity.
£170k mortgage is, what, about 6x joint income? That seems very unlikely, especially at max LtV and with borrowed equity.

Is it fair to give us only a week under current circumstances to be able to just go yes weve got x amount stashed somewhere for a deposit well buy the house. ( we clearly haven't) 

They do not even have to give you a single minute. There is no requirement to offer it to you at all before putting it on the market.

Disjoint

From a landlord's perspective here:
I always offer tenants the right to buy the property first to avoid the hassle of marketing before selling. Here your landlord seemed to have hired an agent to do this (likely the agent managing the letting?), he should have talked to you direct. Based on this: your landlord is an idiot, the estate agent is driving the whole process.

I would show him that you can make his life a living hell (the agent), in a nice way. You are legally allowed to change the locks to the property, without giving them a spare. This is your right as a tenant. Get an agent from another agency, telling them you are looking to sell and need a valuation - don't pay. Agents are a dime a dozen and worst than lawyers, make them work for free and don't feel bad for it. Get even two agents. Look at house prices in your area that have sold on rightmove/zoopla and build a database of prices to know what the flat is worth. Once you know what it's worth you can make an offer.

Agent just wants a sale - so he won't care about the price he sells it at. Landlord might have some anchoring point in his mind, but he also wants a sale. Take market price and subtract 5 to 10%, this is your offer for the house - disregard what they are listing it for (unless it's cheaper than market!).

For the mortgage scrap some money, get a deposit, and buy the place as you seem to like it. Tell the agent you will be taking independent valuation and you need more time, there is a power play here to do. I am a bit tired so take some of my advice with a pinch of salt - but if you are indeed interested in the house, they likely would prefer to sell to you so you have some leverage - ESPECIALLY if you make them understand that you can really make this process more painful than it has to be if they don't play nice.

That's also why I've always been nice to my tenants, happy tenants, happy life. Except for a few exceptions...