Landlord wants to sell

diddly74

Hi Everyone. I haven't posted here in quite a while but now need some advice and thoughts from people who know.

We have been in our home for 11.5 years, renting from 2 great landlords who informed me on a facetime call on Friday that they wish to simplify their lives and want to sell the house.....offering my husband and I first refusal. There is no rush apparently but it could be anytime next year.

House hasn't been valued in a few years,but there are a few homes sold recently in the area, I will look into that.  

The biggest hurdle I think will be getting a deposit together. We have small savings but no where near the sort of thousands I think we will need for deposit and the other fripperies. So I suppose I need to see what we could pull together, or what chances there are to finance this.

Has anyone been through this situation - buying a house from a landlord you have been with for over a decade? We have paid almost £92,500 in rent and asked for very little from them in that time.

What pitfalls should I look out for?, what positives and/or bargaining tools do I hold?

Thanks in advance - my mind just keep whirling around and I'm struggling to see things clearly.

Diddly

sammyjammy

You've paid that rent for a roof over your head, I don't see the relevance.  I guess it would save them evicting you and estate agent fees so you may be able to cut a deal.  Have a look around the rental market as well and see what you can get in your price range if you didn't buy the house.

diddly74

@sammyjammy thanks for your quick opinion. No what we have already paid in rent doesnt really play a large part in this situation, that said we have never been late! However, you have made one good point, a private sale between us would certainly reduce the estate agent fees therefore a saving for them.

dimbo61

use rightmove, on the market, Zoopla and any other websites ( primelocation ) that sell houses to find out within say a mile of your home how much any other 2/3/4 bed houses have sold for ( depending if your renting a 2/3/4 bed house ? )
The Landlord may save £3/5,000 by selling to the current tenants but at the end of the day they are running a business.
What condition is the property ? 
Needs a new kitchen ? Bathroom ? Roof ? Old boiler ? 
What is the EPC rating as you pay the bills ( needs to be E or better to rent )
EICR ? GSC ? General condition

canaldumidi

There are some advantages for both of you: * You don't have the inconvenience of packing and moving * You will own a house you are very familar with * You save yourself the hassle of endless viewings.

LL saves EA fees (probably) * and does not have to evict you prior to marketing/selling so * receives rent right up to date of sale.

Having said that, LL is unikely to be willing to sell much below market value, and market value is best determined by... offering the property on the open market

But your initial steps are to get a good idea of what market value might be, and making sure you can afford it.

Worried_fool

I have been in this situation. Yes: if you buy the property you save the landlord an enormous amount of bother and anxiety as well as a fair amount of money. Estate Agent fees are just the beginning of it. Plus, since the landlord knows that you have paid rent regularly they know that you are reliable and so the transaction would be less fraught than a house sale usually proves to be. So it would be smart for them to offer you a good deal.

GDB2222

You would need at least a 5% deposit. Unless you can get that together, or at least get close, I don’t think you can get very far.  The sellers might sell slightly under market value, as that would make the transaction easier for them. 

diggingdude

Why do people always point out what they have paid in rent? The rent is to have somewhere to live, it isn't a deposit on a property 

HampshireH

Get a couple of valuations and find out what your landlord is actually wanting price wise.

Our place was valued at 265-275. 265 was reasonable price to go on the market with at the time based on like for like sales in the area.

We had 255. They wanted no less than 260 (though obviously would have loved 265). We agreed on 258.

They didn't want to hassle and we're moving away themselves. The saving they made on fees they passed on to us.

We knew it needed new boiler, kitchen, windows & doors. Benefit of buying somewhere you've lived for years is you know the quirks, and you know what you can live with repair wise, while you save to do it.

You also know the neighbours if there are any and know your happy in the area which can be a daunting part of the buying process if moving to a new place

But you will need that deposit and to be able to pay your conveyancing fees

diddly74

diggingdude said:

Why do people always point out what they have paid in rent? The rent is to have somewhere to live, it isn't a deposit on a property 

I mentioned it only because I wish that we could've used that money to buy the house years ago. But unfortunately my husband and I haven't been in such a position.  The act of typing these sentences out and asking questions is part of my process to working through this nightmare and unsettling situation we find ourselves in.

Getting that phone call Friday, out of the blue, has upset my balance and plans I had for next year on. I am having to reevaluate as well possibly enter into the mortgage market legal arena that I haven't had to navigate in over a decade. Things have changed, and I was looking for, and have received, some advice, support and things I haven't thought of in my panic.

Belleofthebooks

First and foremost your best bet is to speak to the Landlord and find out what sort of price range he is wanting. Tell him to get a RICS valuation as this will give a somewhat good idea of the price it's worth and what other similar properties have gone for. If he's just going to go off estate agents valuation then they may price it higher. If you will be able to afford the price is something you'll have to work out for yourself. But there are big benefits of a private sale for the landlord, although really it depends how much you can afford to pay. If the difference is a few thousand the Landlord might not care as he is saving on fees etc but if its more like tens of thousands the Landlord might decide to put it on the open market. 
Once you know the ball park of the price he is wanting then you find out if you can afford to mortgage it. 

If it's unaffordable to you then begin to look at other rental properties sooner rather than later. Yes, you could refuse to leave to buy time and then the landlord could take you to court to evict you but do you really want the stress of that? 

A very difficult decision and I'm sorry you have been put in this position. Unfortunately renting is never secure long term. 

EDIT: Just read your previous thread from 2017. Looks like it's not the first time they have told you they were planning on selling. Why didn't they decide to sell in 2017? 
Maybe they won't sell this time either.