Landlord wanting to sell to us

ProDave

pinkshoes said:

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.

I thought the issue was loan to value, not deposit amount per se?

So if the LL is willing to sell a house valued at £200K to the tenant for £160K it would have a lower LTV without a deposit being paid.

While that makes sense to most people, it remains to be seen if lenders would see it that way or would still insist on a physical deposit?

EDIT: already been answered with the concesionary purchase.

welly_59

ProDave said:

pinkshoes said:

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.

I thought the issue was loan to value, not deposit amount per se?

So if the LL is willing to sell a house valued at £200K to the tenant for £160K it would have a lower LTV without a deposit being paid.

While that makes sense to most people, it remains to be seen if lenders would see it that way or would still insist on a physical deposit?

EDIT: already been answered with the concesionary purchase.

The problem here is the concessionary purchase and the recent missed payments. If you have to go to an adverse lender then a lot of them do not allow concessionary/purchase under value