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Buying our rented house

2

Comments

  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Cakeguts wrote: »
    How do you know it has risen about £100k in value. I assume that you don't know what he paid for it?
    Easy.

    1) OP knows from the Land Registry website (or a commercial one) what the price paid was

    2) OP knows how much he will pay to buy it.

    3) OP has presumably subtracted 1) above from 2) above and the answer was £100K.
  • Cakeguts
    Cakeguts Posts: 7,627 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    G_M wrote: »
    Easy.

    1) OP knows from the Land Registry website (or a commercial one) what the price paid was

    2) OP knows how much he will pay to buy it.

    3) OP has presumably subtracted 1) above from 2) above and the answer was £100K.

    I hope the estimation of the value now is correct. If someone tried to estimate the value of a house that we own and let they would probably get it very wrong because there haven't been any recent sales in that road.
  • Fireflyaway
    Fireflyaway Posts: 2,766 Forumite
    Fifth Anniversary 1,000 Posts
    There are 2 identically laid out houses on the estate up for sale now for the same price as each other so I'm going by that estimate. I checked the previous purchase price on zoopla. I'm not necessarily trying to get a bargain, just like it here. I'd definitely be fair in our dealings and offer.

    The cash in advance idea was like a rent to buy idea if he didn't want to sell straight away. However I'd rather keep it simple!
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    edited 11 December 2017 at 1:57PM
    Was just thinking the rise in value would see him make 100k plus

    There may be some CGT to come off that.
    Rent is £1150 a month

    What are the gross yields on his purchase costs and what he could release after costs and tax.

    [STRIKE]If they sell can they find another property giving at least the same yield[/STRIKE]

    if they sell can they find another property providing the same net income, would need to be much higher yield.
  • DaftyDuck
    DaftyDuck Posts: 4,609 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    If he wants to sell, he might consider the advantages of selling to a tenant, at the right price. However, at a guess, he would expect to get MORE for selling you the house you are in than the two up for sale, as he will see that you want that house rather than either of the other two.

    Sure, he'll save on fees and you will save moving costs. But, you actively want to buy that house.

    Second point. Why not one of the other two, if they are identical? With two on sale, you might get a good reduction in one. You will have minimal moving costs, the move will be easy as pie, and you have the choice of two. In any overlap, you can redecorate etc.

    If either has any advantage over yours, why buy a tired rents that's going to be overlriced, rather than one of two, where both may have to reduce price to sell.

    After all, each month you stay, landlord is better off. At least look and offer on one of the others, if it's suitable.
  • DaftyDuck
    DaftyDuck Posts: 4,609 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Getmore... If they sell, landlord can buy one of the other two available on the estate - so long as he can get that for, say £15,000 less than the one he sells.

    Oh, also factor in the increased stamp duty he will pay, and the inconvenience of setting up a new rental.

    £20,000 less, then :D:D
  • just approach your landlord to see if they are interested in a sale.

    with CGT (and sounds like could be quite high) might not be interested in selling.

    Just approach then you'll know and you could view the other properties in the street and buy them.
  • Cakeguts
    Cakeguts Posts: 7,627 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    There are 2 identically laid out houses on the estate up for sale now for the same price as each other so I'm going by that estimate. I checked the previous purchase price on zoopla. I'm not necessarily trying to get a bargain, just like it here. I'd definitely be fair in our dealings and offer.

    The cash in advance idea was like a rent to buy idea if he didn't want to sell straight away. However I'd rather keep it simple!

    If you really want to keep it simple then the two identical houses that are already up for sale are the simplest way forward.

    Those houses on the same estate are already on the market for sale. The simplest thing to do would be to buy one of those. It could easily take several months for a sale to get to completion so there won't be much left of the 2nd year of your tenancy.

    The chances are that as they are owner occupied (?) they will be in much better condition inside and you might even get carpets included that are not stained and don't need changing straight away.

    Wanting to buy the house that you are renting doesn't make sense if there are two houses on the same estate that are already up for sale. Buying one of those does make sense.

    Your landlord isn't going to sell you the house you are living in for less than the market value. So as you know what the house would be marketed at on the open market it makes no sense to limit yourself to that one house.

    The point is that you won't get a discount because you would be doing the landlord a favour. The landlord can let this house really easily so they don't need to sell it.
  • Cakeguts
    Cakeguts Posts: 7,627 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper

    That is people who are letting a property they had previously tried to sell. The landlord in this case has other rental properties so it sounds like a real landlord running a rental business with nice properties.
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