Need to buy renter house and can’t get a big enough mortgage. Gutted

Whywontthiswork

theoretica said:

Whywontthiswork said:

Thanks all for your lovely comments, they made me feel a bit emotional. I should state that our lovely landlord has already knocked £20k off the price of the house as valued by 2 estate agents. Our estate has become very desirable and there are no houses for sale here so huge demand which is why I think the price has gone up so significantly. 2 other houses if they same size etc sold last year for £300 and 305 and they took a while to sell. He’s had ours valued at £365k and is offering it to us for £345k so a really good offer.

This raises questions - if the only two houses sold recently sold for so much less what evidence is there for the present higher price?  Some estate agents do value properties optimistically high.  It might be worth discussing with the LL getting a proper valuation from a RICS qualified surveyor - not an estate agent sales person!  You would likely need to pay for this, and would want agreement from the LL that they would believe it...  Possibly two valuations - one with sitting tenant.

This is interesting, I didn’t know this was a possibility. I will look and see how much it is. I couldn’t believe how much they valued it at, but they said they couod sell it for the price in 24hours and I am starting to believe them! 

Whywontthiswork

Slithery said:

The amount of deposit you have is only part of the equation, the rest is down to income multipliers.
What mortgage amount are you looking for as a multiple of your income?

We need to borrow 4.75 times our salary for this house. And it appears the limit for 5% deposits is 4.49. Has no idea these little .05’s could have such a big impact! 

Whywontthiswork

Thrugelmir said:

Whywontthiswork said:

 2 other houses if they same size etc sold last year for £300 and 305 and they took a while to sell. He’s had ours valued at £365k and is offering it to us for £345k so a really good offer. We could pay £325-330 easily but anything over that is proving problematic. 

Why is your property worth so much more than those that took time to sell?  Keep on saving and see what develops. You never know what the future might hold. 

Because of the demand I’m told and apparently house prices have increased 11% since last year 😭 I walk passed these houses now and think of I had been able to buy them 12 month ago then this would have been easy, would have been paying less than our rent. BUT husband was made redundant due to covid so we couldn’t buy when they were for sale and I had my heart setting on buying ours for this price as soon as he had a job again, I had no idea it would be £45k more 12 months later 😩

waribai

Estate Agents will often talk up how much prices have risen and talk down how much they have fallen. You may well live on a popular estate but generally estate agents also exaggerate how easily it will be to sell a property. I very much doubt whether he could sell that in 24 hours with a sitting tenant.  If your landlord hasn't had much exposure to the market recently, he may well be taken in by the estate agents drivel. 
Often they will say anything to get a property on their books and then look at doing the price adjustments. Easy for me to say but I would give a time limit to your offer then take a step back and see what happens..........

MEM62

Slithery said:

MEM62 said:

... but he also pays if a tenant buys...  

I posted this in another thread recently to be informed that such charges had been illegal for a while now.

When I arranged my first management contract, the estate agent slipped this clause in.  should I sell to a tenant that they introduced I would be liable for a fee.  When I asked for it to be removed there was no resistance in doing so.  However, it would be prudent for any landlord to check this point.  I have not heard that this is now unlawful but, in my opinion, it is far from fair.      

Getting_greyer

If it would sell in 24 hrs at 365 why he offering you 345?  

I'd still put your 325/330 offer in.  Then it definitely will be sold in 24 hrs.  

Also have you put the max mortgage length possible in? You could always drop it down later on. Might scrape you a few more k.

lookstraightahead

Op, ignore the estate agent hype. Completely 😌

Indigo_and_Violet

I agree with others that I'd be tempted to make a lower offer to the landlord in the first instance. If not, is there anyway you could accommodate a lodger? I don't know where in the country you are but colleagues used to host young international students and got paid well for it. It would make the jump in cost between the rent and the mortgage more manageable. 

Belleofthebooks

Getting_greyer said:

If it would sell in 24 hrs at 365 why he offering you 345?  

Because it would be easier to sell to them and not pay estate agents fees etc??

Because he knows he isn't in a good position right now to sell with tenants in. They could potentialy not vacate the property and it would be unsellable until he went to court and got them evicted which could take years??

Getting_greyer

Belleofthebooks said:

Getting_greyer said:

If it would sell in 24 hrs at 365 why he offering you 345?  

Because it would be easier to sell to them and not pay estate agents fees etc??

Because he knows he isn't in a good position right now to sell with tenants in. They could potentialy not vacate the property and it would be unsellable until he went to court and got them evicted which could take years??

330 sounds like a good offer then.