Prospect Tree Mortgages have advised many clients how they can buy their rental property from their landlord. With times changing and landlords reassessing their options, now could be the perfect time to see if you are able to buy direct from your landlord.
Can private rental tenants ask to buy the house from their landlord?
Absolutely! If you’re in a position to buy property and you’re eager to stay in your current home, buying from your landlord can be convenient and can also save you money given that you won’t have removal fees and may also be able to complete the sale without an estate agent.
Your landlord has no legal obligation to agree to sell to you, after all, it’s their house. However, your enquiry about buying the house might make them consider, especially if you’re able to pay a fair asking price.
What are the advantages of buying your rental property?
- No competition, just you and the seller.
- Can be completed with or without an estate agent, thus saving your landlord selling fees.
- You may have already improved your rental home to your liking.
- You avoid having to move all your possessions to another property.
- You may be able to negotiate the asking price if you’ve been a long-term tenant.
Is your landlord interested in selling?
Landlords are reevaluating their investments right now, high interest rates, taxation and rental calculations will push many landlords to sell up. Get in touch with your landlord to see if they have any interest in selling to you, it may be something they haven’t considered or thought about yet!
Find out how much the property is worth?
Your landlord might have an idea of what price they want to achieve for the property but, you need to be the driver behind establishing a fair price you are willing and able to pay.
A good starting point is checking the price history of your home on a property portal such as Zoopla or Rightmove. You can also use these tools to see what other properties like yours are on the market for and how they compare to your home.
It will be a good idea to have experts value the property. An estate agent is not ‘qualified’ to value a property but can provide a market appraisal. If you want an actual valuation a surveyor will be able to do this for a fee.
Find a good Mortgage Broker!
You already have!
Buying your first home can be an overwhelming and confusing process. At Prospect Tree Mortgages, we understand that the journey to homeownership can be full of challenges and uncertainties, especially when it comes to securing a mortgage.
That’s why we’re here to guide you through the process, offer expert advice, and provide tailored solutions to help you achieve you dream of owning a home.
We have access to the whole intermediary market including exclusive products and have vast experience dealing with clients buying from their landlord like you!
Formally contact your landlord
Bring an offer in writing to your landlord and present to them a fair market price for what you think the home is worth. It’s important to document your correspondences in writing so that both parties have a paper trail and are clear on the terms of the agreement, if they decide to proceed.
I want to buy the property I rent but don’t have a deposit?
There are lenders who will consider 100% mortgages based on your history as a tenant. The amount you can borrow is limited by the rent you have been paying, but it is something to look at if your income allows you to borrow the amount you need.
By speaking to one of our team you will find out quickly if this option will work for you or not.
What if your landlord says ‘No’?
Not all landlords will need to or want to sell their properties, If your landlord doesn’t want to sell right now you can let them know you may be interested in the future, they may give you first refusal when they are ready to sell or even have a plan to sell in x number of years, which may or may not fit in with your own plans, but at least this way you know where you stand.
If you’d like to learn more about mortgage products and how we can help you, please don’t hesitate to get in touch with our team. We’re here to help you navigate the ever-evolving world of mortgages and guide you toward a brighter, greener home.