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  • FIRST POST
    • Lvl_chg
    • By Lvl_chg 5th Mar 18, 10:08 PM
    • 17Posts
    • 5Thanks
    Lvl_chg
    Landlord is selling - offered 1st refusal
    • #1
    • 5th Mar 18, 10:08 PM
    Landlord is selling - offered 1st refusal 5th Mar 18 at 10:08 PM
    I received notice from my lettings agent that the landlord intends to sell the property I am currently renting. They've said that the landlord would offer me first refusal if I wanted to buy the property.

    I would be a first time buyer. I was not intending to buy right now but my wife and myself are really happy here and actually perhaps buying the property is a good idea. We should be able to cobble together enough for a minimum deposit. I have booked an appointment with a local mortgage broker to discuss my options and of course determine if I can even get a mortgage, full stop!

    I'll run through a few numbers.

    The landlady purchased the property in 2014 for 154,000 leasehold with 76 years remaining on the lease.

    The agent has said the landlord has recently purchased the freehold and they would be looking for 199,950 IF the property were to go into the open market. No formal valuation has obviously taken place and she said this was a value based on similar properties for sale in the area.

    I have done a couple of quick valuation (Zoopla) etc and they have suggested its value to be between 186,000-194,000.

    Would you suggest I get a proper estate agents valuation for myself?
    Can I do this as just a tenant in a property? If so what's a ball park figure cost for this?
    Do I have a good bargaining chip being the current tenant? Can I use this to my advantage in terms of an offer? I guess I would be saving the landlord certain fees etc right?

    I'm hoping I'll know more after seeing the broker later in the week but I thought I would put this out to the good people of MSE forums who might be able to shed a bit of light on this situation for this unsuspecting tenant!

    Many thanks in advance!
Page 2
    • Mahsroh
    • By Mahsroh 6th Mar 18, 4:09 PM
    • 339 Posts
    • 330 Thanks
    Mahsroh
    You might be not saving the landlord any fees as his letting agent may very well have a sales commission clause in his contract with the letting agent.
    It might even be a higher rate than he would be normally paying an estate agent.
    Originally posted by Quizzical Squirrel
    Edddys post above suggests this practice is now unenforceable?

    I know with my previous letting agent, it was written into my contract that any sale between myself and tenant and they would be entitled to a 1% fee, but with my new letting agents such clause does not exist, which I thought was strange, until I read Edddy's post above.
    • Smodlet
    • By Smodlet 6th Mar 18, 5:17 PM
    • 3,004 Posts
    • 6,045 Thanks
    Smodlet
    #9.............
    What is this life if, sweet wordsmith, we have no time to take the pith?
    Every stew starts with the first onion.
    I took it upon myself to investigate a trifle; it had custard, jelly, soggy sponge things...
    • Lvl_chg
    • By Lvl_chg 6th Mar 18, 8:07 PM
    • 17 Posts
    • 5 Thanks
    Lvl_chg
    Thank you to everyone for your information!
    • Crashy Time
    • By Crashy Time 6th Mar 18, 10:18 PM
    • 6,061 Posts
    • 2,345 Thanks
    Crashy Time
    Is there not some law which says LLs have to give the tenant of a property they want to sell first refusal?
    Originally posted by Smodlet

    Yes, it is called the law of "Who the Fluck can I shift this Money pit of a BTL on to".


    http://www.dailymail.co.uk/money/buytolet/article-5468699/Private-renting-needs-solution-housing-crisis.html#comments
    • AdrianC
    • By AdrianC 6th Mar 18, 10:25 PM
    • 17,374 Posts
    • 15,705 Thanks
    AdrianC
    Did Crashy really just link to a Daily Heil comments section?
    • ThePants999
    • By ThePants999 6th Mar 18, 10:42 PM
    • 1,119 Posts
    • 1,375 Thanks
    ThePants999
    Well, although that's a bizarre thing to do if you're trying to make an actual point, it was good for a laugh. I loved this one:

    We can easily solve the housing shortage by confiscating the homes of atheists. Why can't they all go and live with Richard Dawkins since they're so 'clever'?
    • AdrianC
    • By AdrianC 6th Mar 18, 10:47 PM
    • 17,374 Posts
    • 15,705 Thanks
    AdrianC
    You have to admit, that's fairly sane and rational by Daily Brownshirt comment standards.

    Maybe Crashy's trying to show that he's actually not quite as fruitloop as he seems, because there's plenty of worse out there?
    • ThePants999
    • By ThePants999 7th Mar 18, 5:23 PM
    • 1,119 Posts
    • 1,375 Thanks
    ThePants999
    I'm not particularly ashamed to admit that I have very little experience with their website, let alone the comments!
    • AdrianC
    • By AdrianC 7th Mar 18, 5:33 PM
    • 17,374 Posts
    • 15,705 Thanks
    AdrianC
    I'm not particularly ashamed to admit that I have very little experience with their website, let alone the comments!
    Originally posted by ThePants999
    Keep it that way if you don't want to become an absolute misanthrope.
    • Crashy Time
    • By Crashy Time 8th Mar 18, 8:25 PM
    • 6,061 Posts
    • 2,345 Thanks
    Crashy Time
    You have to admit, that's fairly sane and rational by Daily Brownshirt comment standards.

    Maybe Crashy's trying to show that he's actually not quite as fruitloop as he seems, because there's plenty of worse out there?
    Originally posted by AdrianC

    This from the person who thought that interest rate rises were a "conspiracy theory" I will think of Mel Gibson every time you post now
    • Lvl_chg
    • By Lvl_chg 8th Mar 18, 8:43 PM
    • 17 Posts
    • 5 Thanks
    Lvl_chg
    **UPDATE**

    Having met a local broker he has listed a few mortgages that MAY be available to me.

    Initial affordability checks suggest I could get above and beyond what I would be willing to spend on the property.

    I currently bank with NatWest and they have confused me slightly. I called them and they have suggested I would be able to get up to a similar value as the broker at a similar rate. The agent said I would then need a longer call with a mortgage advisor. However this advisor said they could not proceed any further as I have not had my offer on the property accepted.

    But I thought I would need to secure a mortgage before making an offer?? Not the other way round? !!!55357;!!!56870;
    • AdrianC
    • By AdrianC 9th Mar 18, 7:54 AM
    • 17,374 Posts
    • 15,705 Thanks
    AdrianC
    However this advisor said they could not proceed any further as I have not had my offer on the property accepted.

    But I thought I would need to secure a mortgage before making an offer?? Not the other way round? !!!55357;!!!56870;
    Originally posted by Lvl_chg
    There's a "decision in principle" - this is basically the lender looking at you, and saying "If this person finds a property that we have no issue with, would we lend them money?"

    Then there's the actual mortgage offer, which is them looking at the property, and saying "Are we happy with THIS house being security for that person to borrow that amount?"
    • Crashy Time
    • By Crashy Time 10th Mar 18, 11:25 AM
    • 6,061 Posts
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    Crashy Time
    Did Crashy really just link to a Daily Heil comments section?
    Originally posted by AdrianC

    The housing market lives or dies on sentiment now (and rates) it is really that simple
    • buggy_boy
    • By buggy_boy 10th Mar 18, 1:30 PM
    • 410 Posts
    • 271 Thanks
    buggy_boy
    The housing market lives or dies on sentiment now (and rates) it is really that simple
    Originally posted by Crashy Time

    Yep totally agree, has nothing to do with supply and demand, all we need is one house for the entire country, its all about sentiment.
    • Crashy Time
    • By Crashy Time 10th Mar 18, 10:20 PM
    • 6,061 Posts
    • 2,345 Thanks
    Crashy Time
    Yep totally agree, has nothing to do with supply and demand, all we need is one house for the entire country, its all about sentiment.
    Originally posted by buggy_boy

    You are seriously deluding yourself if you think there is a shortage of property, why do you think government after government talks about "mass building programs", but never actually does it My answer - THEY know prices are credit/interest rate driven, but they hope (or hoped) the public wouldn`t catch on If there really was a shortage of places to live the country would be awash with civil disorder every night, just look how the London riots spread, and I bet 99.9% of the people taking part had a roof over their heads, what do you think would happen if there really were hundreds of thousands without the option of shelter? Lets see what happens to "Supply and demand" when bond rates start shooting up
    • buggy_boy
    • By buggy_boy 11th Mar 18, 8:56 AM
    • 410 Posts
    • 271 Thanks
    buggy_boy
    You are seriously deluding yourself if you think there is a shortage of property, why do you think government after government talks about "mass building programs", but never actually does it My answer - THEY know prices are credit/interest rate driven, but they hope (or hoped) the public wouldn`t catch on If there really was a shortage of places to live the country would be awash with civil disorder every night, just look how the London riots spread, and I bet 99.9% of the people taking part had a roof over their heads, what do you think would happen if there really were hundreds of thousands without the option of shelter? Lets see what happens to "Supply and demand" when bond rates start shooting up
    Originally posted by Crashy Time

    No your right, there are plenty of properties available, its all due to interest rates and credit... Im looking for another BTL property, have been waiting for a suitable property in the right area to come up for over 6 months now. I mean its not like people are still living at home with parents because there are not enough houses or squeezing themselves into HMO's or those big houses turned into tiny flats.. No apparently thats not due to a lack of houses its ummm how does that fit into your thinking exactly? People still have shelter, if you built an extra million houses in the right areas they would not be empty because there is huge demand.

    Come on fess up Crashy, you have been on here over 4 years spouting off about a crash, how much rent have you spent in that time and how much have houses increased? You probably need what a 40% decrease in properties to break even?
    • Crashy Time
    • By Crashy Time 11th Mar 18, 8:30 PM
    • 6,061 Posts
    • 2,345 Thanks
    Crashy Time
    No your right, there are plenty of properties available, its all due to interest rates and credit... Im looking for another BTL property, have been waiting for a suitable property in the right area to come up for over 6 months now. I mean its not like people are still living at home with parents because there are not enough houses or squeezing themselves into HMO's or those big houses turned into tiny flats.. No apparently thats not due to a lack of houses its ummm how does that fit into your thinking exactly? People still have shelter, if you built an extra million houses in the right areas they would not be empty because there is huge demand.

    Come on fess up Crashy, you have been on here over 4 years spouting off about a crash, how much rent have you spent in that time and how much have houses increased? You probably need what a 40% decrease in properties to break even?
    Originally posted by buggy_boy

    Was it around `95, or`96 you started trawling property forums you said? How many people lived at home back then beyond their teens? ...Lets think now, why are more and more people staying at home longer and longer.... (Light bulb clicks on) Maybe there are plenty of houses, but those houses cost too much! I wonder what needs to happen to house prices??
    • buggy_boy
    • By buggy_boy 11th Mar 18, 8:40 PM
    • 410 Posts
    • 271 Thanks
    buggy_boy
    Was it around `95, or`96 you started trawling property forums you said? How many people lived at home back then beyond their teens? ...Lets think now, why are more and more people staying at home longer and longer.... (Light bulb clicks on) Maybe there are plenty of houses, but those houses cost too much! I wonder what needs to happen to house prices??
    Originally posted by Crashy Time

    Yeah, I was "trawling property forums" at the age of 12.. I dont know how many people lived at home back then, I was 12, it was not something I thought about. Are there loads of empty houses everywhere then? I dont know about your area but in mine, there are so few houses coming on the market and so much pent up demand houses sell in days. In my town last year prices rose 13%. Yes house prices could do with a bit of correction, ill totally agree with you on that one, is an apocalyptic crash coming... I dont see it...

    So im guessing you are of the age you could have bought in 95/96, and you didnt, how much do you regret that... Wow with the rent you have paid and the amount you could have made it makes sense why you are so bitter and troll sites like this trying to make up a crash.
    • jungle jane
    • By jungle jane 11th Mar 18, 10:11 PM
    • 609 Posts
    • 1,773 Thanks
    jungle jane
    i don't understand how this flat is being sold though - has the landlord bought the freehold of the entire block? Or just his his own share of freehold? In which case there would still be a lease that needs extending - has this been done? I wouldn't buy a place with a 76 year lease - i'd ask him to get it extended as part of the sale.
    • Lvl_chg
    • By Lvl_chg 11th Mar 18, 10:14 PM
    • 17 Posts
    • 5 Thanks
    Lvl_chg
    I did an update on page 2 I think.

    It's a house and the landlord does have the freehold.
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