sitting tenant wanting to buy off landlord

Benefits_Blagger

noseymum wrote: »

in reply to trollfever,
the valuations were for the market price of the house with vacant possesion.
I told the 3 different estate agents the truth in that I am the sitting tenant getting the 3 quotes on behalf of my landlords family and that they had given me first refusal to buy the house.
The last man who came said to me that he felt that I would have to pay the landlords family the full market value as I am the sitting tenant and that only someone else buying would have the right to buy it cheaper as to them it would lose value as it is occupied by me.

absolute !!!!!!!!, there is no such thing as "right to buy it cheaper", it's not not a council house discount !!!!!!!!

everyone has the right to buy it at the same price, but a price which is substantially less than similiar properties which dont have sitting tenants.

regarding the deposit problem, remember when you buy the property you are going to have instant equity. i would suggest seeing a mortgage broker who should be able to source a mortgage for your particular set of circumstances.

as for the landlady's son, tell him its not your problem either as it doesnt matter who owns the property, you will still have your rights and a nice cheap rent :T

Trollfever

The last man who came said to me that he felt that I would have to pay the landlords family the full market value as I am the sitting tenant and that only someone else buying would have the right to buy it cheaper as to them it would lose value as it is occupied by me.

And this was from a professional?

Tell the owners to put it up for auction, I will buy it and pay you say £50k cash to give me vacant possession!

PasturesNew

noseymum wrote: »

The last man who came said to me that he felt that I would have to pay the landlords family the full market value as I am the sitting tenant and that only someone else buying would have the right to buy it cheaper as to them it would lose value as it is occupied by me.

Rubbish really. Having you there makes the property worth a whole lot less and a lot harder to shift. Therefore it has to be the same price whether you buy it or not imho.

Frugaldom

I have to agree here, if there is no compulsory landlord registration in England and no way of finding out where to make an offer in the first place, then the whole thing sounds rather suspicious. As stated previously, we were put in a similar situation (pre-landlord registration) when our landlord died, but we didn't know we could sit tight and pay the next landlord. Regardless of that, the family wanted all the properties sold (there were several). Problem was that they were in such a state of disrepair that they were unmortgageable. We managed to get a bank loan and purchased for slightly below market value, only then finding out the properties were leasehold! If I had to be put into the same, or similar, situation again, I would seek independent legal advice to ensure proof that I was a sitting tenant with a fixed rent and, assuming I had a way of paying that rent when I retired, I would sit tight for now and use the time to weigh up all the options.
Are you in a position to raise the kind of cash that's being talked about for the purchase, including fees, stamp duty, repairs and on-going maintenance etc, etc, etc?
Do you have family who could benefit from continuing with the tenancy?
Who will benefit, how, when and why by whichever option you choose?

noseymum

Hi there all,
your input as been invaluable for me and my frayed nerves.
The main thing to have come out if this is that I should just stay put, pay my rent and not to panic.
I am not sure how easy it is to find an independent surveyor to value the house, I thought they all worked in partnership with the estate agents.
Im not sure how or through whom it is best to get independent legal advice so any pointers would be much appreciated.

chappers

Noseymum don't get fretting about this maybe make some tentative enquiries into how much mortgage you can get.

Let the owners put the house on the market and see that they can only actually get about half the valuations, then put in an offer based upon that when they can't sell it for the valuations you gave them.

You have nothing to lose your tenancy is protected, if it goes on the market just keep aclose eye on the property.
If you bought it for say £80K you wouldn't need a deposit just your legal fees as you would have an LTv of 50%ish, as once you owned the house you could sell it with vacant possesion for the higher value.

Frugaldom

Citizens Advice Beareau may be able to offer you some advice about your lease and, usually, the first visit to a lawyer/solicitor is free. Don't be scared to call around to make sure, but I'm almost certain that they'll offer you the advice free knowing that there's the possibility of a follow up.

Speak to your existing bank about the possibility of a mortgage as they are best placed to know what's going through your account each month. Even if you don't choose to use them, it'll give you a rough idea of what to expect and then you can shop around for best rates etc. Good luck

EdInvestor

I'd suggest you consult your solicitor (who gave you the good original advice about your protected tenancy)about how to handle the offer and ask him to suggest an independent surveyor to do the valuation ( especially focussing on the amount of work needing to be done and how much this lowers the market value)..

As mentioned you would not need a deposit, because that's covered by the 40% (say) gap between the value of the property if you bought it (say 160k) and the value now - say 96k (160k - 40% discount for protected tenancy)

You would probably need to borrow a bit more than that (or get a bigger discount) in order to do the renovations.

devils_advocate

noseymum wrote: »

The last man who came said to me that he felt that I would have to pay the landlords family the full market value as I am the sitting tenant and that only someone else buying would have the right to buy it cheaper as to them it would lose value as it is occupied by me.

So you have to pay more for it than anyone else??? What a load of rubbish this estate agent is saying. There is no reason, either in law or otherwise, as to why this would be true,

pulliptears

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