Landlord wanting to sell to us

olaf2014

So me and my husband have been in our house with the kids for 6 years now and have a rolling contact with the landlord we are quite lucky rent has never gone up. We had a leak before Xmas and had to ring the landlord he came over got it fixed and mentioned selling the house to us but would talk about it after Xmas

Moving on he came over to talk and said he wanted to sell to he house as he's paying out more than he's getting in and wanted to sell us the house we explained we had no deposit so he said the house is worth 200 would sell us it as a discount of 160 and rest can be used as a deposit me and my husband have basically snapped his hand off I am worried now tho we won't get it

The reasons are

We don't have very good cred rating
We have bought a few takeaways(looks like it can go against u)
Iv missed a few payments since Oct as iv been on maternity leave and since missing 1 months payments it's all got on top of me

Other than that we where fine before that never missed any payments 

What's the chances we can get one we are going though a mortgage Brooker as we tried though a channel with the police and they recommend this company as the mortgage would be classed as a special one due to what the landlord wants to do.

I really want to buy it as I feel it's the only chance we would get and if we can't have it the landlord will sell anyway but we can't afford the rent to go.

Think I may be panicking now.

Thanks in advance 

diystarter7

Hi OP
Has the LL put the property on the market?
"Wanting to sell to you," I'd be a bit weary of that as they could get a cash buyer etc ie ready to go etc.

You buying it will depend on several factors and an inportant one is how big is your deposit the bigger it is easier to get, your income the bigger the better and then cred rating.

Others thaat work in this area will be better guided to answer your lending question in detail IMO

Thnaks

olaf2014

No it's not on the market he's waiting to see if we can get the mortgage for it. In the conversation we had he said with the rent we pay he has to payout more for other things as he had to set up a business as he use to but houses cheap do them up sell on or rent we r his last house to get rid off as he want to now enjoy his retirement. 

Just don't no if I feel bit overwhelmed with it iv not spoke to the parents about it as I don't want them to no we have money troubles especially when I no my mum compares me with my younger sister who fell very very lucky her husband family gave them 40k as a wedding present. Me and hubby are having to do it on r own 

Sea_Shell

I think all you can do is see how much you can raise via mortgage and take it from there.

What's your joint income?   What other savings do you have?


How can his "discount" also be "a deposit"?

SadieO

olaf2014 said:

we had no deposit so he said the house is worth 200 would sell us it as a discount of 160 and rest can be used as a deposit

What does this mean? I'm also don't understand what you mean about the police being involved in recommending a mortgage?

What multiple of your income would the mortgage be?

"A few takeaways" - a mortgage lender won't care if you have a pizza on a Friday night! They care about fixed outgoings that you are committed to such as loan repayments. As long as you aren't spending so much that you are clearly unable to manage your money, they don't care about discretionary things like hobbies and food shopping, as you could stop/ cut down on those any time you needed the money; you can't do that with a loan repayment.

What are the payments you have missed? 

propertyrental

Whether you can get the funding to buy is not something anyone here can tell you. You should

a) speak to an independent mortgage broker
b) get 2 or 3 valuations from local estate agents.

user1977

Take aways don't matter, but recent missed payments (whether or not those are because you're spending your cash on take aways...) are going to be more of a problem.

SadieO said:

olaf2014 said:

we had no deposit so he said the house is worth 200 would sell us it as a discount of 160 and rest can be used as a deposit

I'm also don't understand what you mean about the police being involved in recommending a mortgage?

I presume they're an employer of the OP (or husband).

strawb_shortcake

Do you mean you went through Police Mutual (tenet mortgage solutions)? If so these have been very good and I've used these a couple of times with no issues 

pinkshoes

olaf2014 said:

he said the house is worth 200 would sell us it as a discount of 160 and rest can be used as a deposit 

I don't understand this. 

How would lowering the price by £40k give you a deposit? Is he planning on giving you £40k cash???

1. Work out what the house is ACTUALLY worth. Look at www.zoopla.co.uk to look what similar houses have SOLD for. You might find it is not even worth £160k.

2. Speak to a broker. As a rule of thumb you can borrow perhaps 4 times your joint income and then you'll need a 10% deposit plus extra for buying costs. Do you have a spare £20k?? A lender will want to know where your deposit comes from.

If you cannot afford to buy it, then either do nothing and wait for an eviction notice, or start looking for somewhere else to rent.

eddddy

olaf2014 said:

Moving on he came over to talk and said he wanted to sell to he house as he's paying out more than he's getting in and wanted to sell us the house we explained we had no deposit so he said the house is worth 200 would sell us it as a discount of 160 and rest can be used as a deposit me and my husband have basically snapped his hand off I am worried now tho we won't get it

So you're saying that you think the market value of the property is £200k, but it's being offered to you for £160k - and it sounds like you have no deposit.


So I guess you're looking for a 'Concessionary Purchase' (or 'Genuine Bargain Price') Mortgage - as described on this Nationwide page:

 Concessionary Purchase/Genuine Bargain Price

Concessionary Purchase/Genuine Bargain Price is where the property is knowingly being purchased by your client below the market value. The purchase can't be part of a recognised scheme such as Right to Buy or Shared Ownership.

...

Acceptable scenarios

• Private tenant buying from their landlord

Lending terms

• The discount must be a gift, not a loan, and there must be no conditions attached to it.
• A deposit is not required unless the loan exceeds our maximum LTV.
• LTV is calculated using the open market value with a maximum of 90%

Link: https://www.nationwide-intermediary.co.uk/lending-criteria/purchase-types

 The mortgage lender would want to value the property to make sure they agree it's worth £200k (They might not agree.)

You probably need to find a mortgage broker who is experienced in 'Concessionary Purchase' mortgages, so maybe ask about that first, when you're contacting brokers.

And also mention your credit history early on.

theoretica

Sounds great!  Talk to the broker, and of course make very sure you stay on top of payments from now on.

It would be worth getting hold of what is actually on your credit report - not the number, but the details - so you can show the broker.