Selling a property to the tenant

Herzlos

Yeah it's hard to put a number on it but selling a house is an absolute pain in the rear, and what's a few % or £k to avoid that hassle. I know it's a money saving site, but there's no sanitysavingexpert.com

I guess it also depends on how much you need the money, how much the house owes you, and how long the tenant has been in place.
For instance, you might give a much better deal to a tenant who's been there for 20 years and pretty much paid the complete mortgage for you vs one that's been in a year and you're still underwater.

user1977

Also bear in mind the tenant is thoroughly familiar with the property, so you don't have the risk of a buyer flouncing off because they've found out something they don't like.

Flo87

I would make an average of the nearby properties sold in the last year and knock 5% or 10% if the place require some more work to be done

FlorayG

https://forums.moneysavingexpert.com/discussion/comment/82137332#Comment_82137332

Thats avery valid point because it's a very old house, at least she knows its quirks

@Flo87 there aren't any similar nearby that have been sold in the last few years

horsewithnoname

https://forums.moneysavingexpert.com/discussion/comment/82137249#Comment_82137249

This sounds fair, and not greeedy and grasping like some of the suggestions.

whaleroad

https://forums.moneysavingexpert.com/discussion/comment/82136965#Comment_82136965

The tenant might just be looking for an easier route to home ownership and may well love the home they're renting, so yes that's a benefit. But the cost saving to them is pretty small. The overlap in rent/mortgage potentially eliminated and no removal firm costs. A couple of grand? The landlord is looking at savings many times that. The tenant can easily find another property to buy. The landlord would find it much harder to find a buyer. This isn't an equal benefit situation. The tenant should walk away if there's no financial incentive to buy the home they're renting, on principle.

Myci85

There are obviously cost and hassle savings on both sides here, but if you were planning to sell soon anyway, I'd be trying to make it an attractive prospect to your tenant.

With the law changes, you now have to give 4 months notice to end the tenancy, and of course we all know there is no guarantee they'll leave willingly. Most people won't consider offering on a currently tenanted property for that reason, so you would probably have to wait for the tenant to leave before even marketing. No knowing how quick it would sell, especially if old and quirky, could go either way. Sales process usually a minimum of 6 months, but again no guarantees an unknown buyer wouldn't find something in the survey and pull out if old property.

Only you know what cost the reduced hassle in selling to your tenant is worth, but I'd be inclined to offer much more of a discount than the EA fees that some are suggesting.

Yorkie1

https://forums.moneysavingexpert.com/discussion/comment/82137892#Comment_82137892

I was thinking along similar lines. Obviously it depends on the state of the market in the OP's particular area, but just expecting the buyer to pay what an EA has suggested as an initial marketing value is probably unrealistic in many areas at present. Properties are commonly taking months to sell, and often only after reducing the price once or more.

We are also coming up to a quieter time of year - although I realise that the OP doesn't have a deadline and is only thinking about this now because the tenant has made an approach.

HampshireH

I've been the buying tenant.

Our landlord arranged 3 valuations. Then we settled on an agreeable price in the middle which factored in that they would be paying estate agent fees.

Lived there 5 or 6 years prior and knew the house and what needed doing (windows/door/boiler/kitchen replacements) didn't bother with a survey and they knew we wouldn't try and haggle.

6 weeks start to finish. Was great.

stripling

https://forums.moneysavingexpert.com/discussion/comment/82137011#Comment_82137011

Give thanks my kids don't have to rent off people who think like you.

If a tenant has been renting long term and wants to buy the property they're renting, you've benefitted from their tenancy and if they buy, you are not only saving money but a huge amount of stress. Good, long term, stable and reliable tenants are your bread and butter.

They deserve a discount because other than you needing to find a conveyancing solicitor they've done you a massive favour.

My son's landlady, who has been a very good landlady for many years, told them that if they ever wanted to buy they should let her know and she would offer them a discount on the value.