sitting tenant wanting to buy off landlord

SouthCoast

Information on the different types of tenancy can be found here:


http://www.adviceguide.org.uk/index/family_parent/housing/private_sector_tenancies.htm

clutton_2

just ask estate agents to come and value it - dont tell them you are the tenant. at least then you will have some idea of the market value. when you have that, - then you can find out how much a Lender would lend and therefore how much your mortgage interest payments might be. Also find out what local letting agents would assess the market rent at - then come back with soem figures and we may be able to help.

bw

Somerset

noseymum wrote: »

I took legal advice years ago and I am in the category you mentioned,defaulted to rent act -assured tenacy.
.

Ok lets accept you're an assured tenant - no reason to think the legal advice was wrong. If you read the link South Coast kindly posted, there are some grounds on which your tenancy can be terminated but I'm assuming they don't apply here ie rent arrears etc, so effectively you are a ''sitting tenant''.

Ok, first question, do the landlord's family know this ? Are they expecting negotiation to be on this basis ( if not they could be in for a nasty shock ! )

It's a bit strange that the family have asked you to get the valuations - I would have thought they'd make an effort ( to maximise price ) but so be it. In your position, this is what I'd personally do :
- Go to three local estate agents.
- Say the owner is thinking about selling, and ask for a written valuation on the basis you are a sitting tenant. Don't mention you have first refusal. You are just doing the owner a favour and he might or might not proceed with a sale. All true.
- I'd personally be asking the agents what the open market value was, without the 'sitting tenant' issue, just in passing conversation, not to be passed on to the owners. I'd want to know what % discount they were applying to the 'sitting tenant' issue. As I said earlier, I'd be expecting rheir 'sale price' to be between 50% - 70% of OMV.
_ Get the valuations sent to you - not to the relatives. You pass them on. Estate agents have friends.
- Then it's up to you and the relatives to negotiate on the price, based on the valuations you've obtained for them.

Selling this type of property has a smaller market. It can still be sold obviously, usually via auction. An auction sale would involve fees for the relatives which they could avoid if they sold to you.

Take it one step at a time. Go through the above process and see if it's a goer that you could buy yourself. If not, let us know anyway. You''ll still have the same protection with a new landlord that you had with the old ( if you can't buy ) but obviously some are more scrupulous than others :eek: . It does sound like the relatives are looking for the easiest, quickest and fairest way to get rid of the property - so you might get a very good deal. Best of Luck :rotfl:

pickledpink

I'm a bit confused................some of you here have posted on other threads saying it's CRAZY to buy property now; that the market is going to crash big time; that property is bound to fall and we'll all be out of pocket..........our homes will be worth peanuts in 10/20 years time.............and that renting is far better than paying a mortgage...........

and here you are advising her on how to get a good deal and wishing her luck!!!:rotfl:

Ooooops!!!!!:T

chriz1000

What’s stopping the new Landlord upping the rent to make the house unaffordable for noseymum to live in as a way of getting rid of them? Or is she somehow protected against this?

epz_2

i may be missing something here but given but the rent is effectivly fixed at inflation and there is little prospect of captital growth (unless the op moves/dies) doesnt this mean the value of the property is basicly what their rent is.

i would use one of the mortgage calculators to work out what the rent would equate to in terms of an interest only mortgage.

aqueoushumour01

pickledpink wrote: »

I'm a bit confused................some of you here have posted on other threads saying it's CRAZY to buy property now; that the market is going to crash big time; that property is bound to fall and we'll all be out of pocket..........our homes will be worth peanuts in 10/20 years time.............and that renting is far better than paying a mortgage...........

and here you are advising her on how to get a good deal and wishing her luck!!!:rotfl:

Ooooops!!!!!:T

yes, but the point is that the OP could purchase the house at a price significantly below market value so a fall in house prices is not so much of a concern here. (prices are unlikely to fall by 40-50%!)

noseymum

Thanks Somerset,( and eveyone else replying to this thread)
yes I have spoken to the family on the phone and they are aware that I am a sitting tenant.
I was surprised that they have asked me to get valuations but they live about 200 miles away so it maybe inconvenient for them to do so.

To "chris1000" the property has a "fair rent" fixed on it and I think a new landlord would have to substancially renovate the property before it would make much of a difference to the amount that fixed rent would be.

Somerset

While I was cutting back the dogwood i had another thought ( I really should switch off )

Yes, your comment about being 47 - makes a big difference in the price to any other buyer. Means you're going to be there for donkey's years plus succession rights. Use it to negotiate the price down.

Trollfever

A post of mine last month:

Allsops were selling AST's at auction this week for an average yield of 6.01%

This should be your starting point for negotiations.

Average Yields
Regulated Tenancies
4.35%
Assured Tenancies
5.45%
Assured Shorthold Tenancies
6.01%

From:


http://forums.moneysavingexpert.com/...ghlight=allsop