If you were a tenant would you do this

ChirpyChicken

itsthelittlethings said:

I think it would be legally a bit dodgy if they were responsible for the repairs as you could still be the landlord with landlord responsibilities. A lot could go wrong.

This is true. But I think that bit could be resolved with the right agreement 

I want him to have something but not in such a way its handed on a plate. The question is how..!

Jemma01

I didn't read the comments. Even if the seller is my sister, I wouldn't do anything without a solicitor doing it all and agreeing everything in writing and protecting me, the valuation will have to be an independent person deciding the value, not a finger in the air nor a wish list.

Grumpy_chap

ChirpyChicken said:

I think what i am after is the Tennant making a commitment to future home ownership by putting something in rather then just being handed something on a plate

What connection is this Tenant to you?
Why do you have any concern as to whether the Tenant is on the path to being a homeowner or not?

It could make a difference to people's answers if there is some relationship whereby you have a close interest in the Tenant's success (or otherwise) in life, i.e. the Tenant is not really just a Tenant.

Though, of course, the values suggested don't really support the idea of the Tenant being somehow special to you:

ChirpyChicken said:

i want 80k for the house  

ChirpyChicken said:

The open market of the property is currently around 72k

ChirpyChicken said:

the rent is slightly above market rate 

Whatever the background to you buying the house to "support" the Tenant, there is a risk that this would all be perceived that the Tenant is vulnerable and being exploited.

If you truly want to do this with the Tenant's best interests at heart, then keep it all very simple, don't go down the route of explanations or rationalising your decisions to the Tenant, but simply write to the Tenant in a factual and professional, purely business-like manner along the lines of:
"I plan to sell the house at which you are currently residing.  The value of the house is £72k.  I am willing to sell to you for £65k to reflect the avoidance of EA fees and the need to follow an eviction process.  If you wish to purchase the house at £65k, please confirm your intention by the end of January and I would seek to achieve completion by the end of June.  If I don't hear that you wish to purchase the house by the end of January I will serve notice to terminate the tenancy and commence marketing the property with a view to realising the full open market value of £72k.  The offer to sell at £65k will terminate at that point, i.e. 31st January 2026."

Albermarle

Tabieth said:

I think it sounds like a recipe for total disaster. At the bare minimum you’d both need individual legal advice. What jumps out as me is - what happens if one party changes their mind? You might think that will never happen but life has a habit of throwing up surprises. If I were your tenant I’d be very wary of this proposal. 

I think with the unusual nature of the proposal and all the possible pitfalls, disagreements etc, we are in danger of forgetting that the OP's offer is a distinct improvement on the status quo, from the tenants point of view .

Currently they pay £600 a month rent, and after 10 years they will still be paying rent.

Under the proposal they will pay the same rent for 10 years, but at the end will own the house.

I think if I was the tenant I might not be looking a gift horse in the mouth that closely.

ChirpyChicken

Basically I have known the Tenants mum before he was born
Got him court bail then when he had served a prison sentence. He came to live with us paid a basic wage with free board and lodging to labour on another house we had brought 
Then I got him a job and as we were selling a house he lived in and was near a job 150 miles away from family got him a house. He met someone as a result and now has a son

So I guess i want to him have a chance

ChirpyChicken

Albermarle said:

Tabieth said:

I think it sounds like a recipe for total disaster. At the bare minimum you’d both need individual legal advice. What jumps out as me is - what happens if one party changes their mind? You might think that will never happen but life has a habit of throwing up surprises. If I were your tenant I’d be very wary of this proposal. 

I think with the unusual nature of the proposal and all the possible pitfalls, disagreements etc, we are in danger of forgetting that the OP's offer is a distinct improvement on the status quo, from the tenants point of view .

Currently they pay £600 a month rent, and after 10 years they will still be paying rent.

Under the proposal they will pay the same rent for 10 years, but at the end will own the house.

I think if I was the tenant I might not be looking a gift horse in the mouth that closely.

Thanks i realise there are issues but it is a genuine proposal which just needs ignoring out

Isthisforreal99

So if the tenant apparently can't do the things the OP claims ( or lacks the common sense to do so - still think there may be some learning issue at play here) then how do they know what they are signing up for. Any decent solicitor will want to know that their client understands what they are signing up for and if they say 'no clue tbh', then what? 

theartfullodger

Many landlords think never rent to friends or family. 

No, just rent at market rent, no special deals.  See the place with them in it if you want shot. 

Do any training as a landlord??

Myci85

Could you not just continue to rent the house to him for the next 10 years, and then offer it to him as a gift at that point if he wants to own it? Would seem a more simple way round it with the same end goal. 

Do you know whether he is in a stable enough position to want to be a homeowner and responsible for maintenance etc?

ChirpyChicken

Myci85 said:

Could you not just continue to rent the house to him for the next 10 years, and then offer it to him as a gift at that point if he wants to own it? Would seem a more simple way round it with the same end goal. 

Do you know whether he is in a stable enough position to want to be a homeowner and responsible for maintenance etc?

That is possible and yes I think if it can be drummed into him that he needs to do x y z