Rent to buy. Looking for advice

leelee77

Hi all,

I am hoping someone can help me. We went to view a house today and it is pretty much perfect. Unfortunately the timing isn't great for us. We have sold a property in the UK and it is going through mid-September. That will give us the 10% deposit required. We have also been saving money for only a couple of months so it will be the end of November before we have the required 6 months savings in our bank account.

The house that we looked at today was sold a few months ago but the sale fell though. The sellers have since moved to America so the house is vacant and obviously they want it sold asap. I was going to approach the estate agent to see if the seller would accept a rent to buy agreement until our mortgage went through but I am unsure how to approach this.

We would like to bargain down the price a bit as well so would I go in with that suggestion and then try to bargain down or how would I work it? Also - I would be suggesting that whatever we paid on rent would come off the purchase price.

Does this sound crazy and how would should I approach this?

Thanks in advance.

Grandpa Hassan

I don't see why the seller would knock the rent paid off the purchase price. You'd effectively be asking them to hold off selling until December, and in the meantime they might have a mortgage to pay, which they wouldn't have to pay if a buyer came in next month and took it off their hands. The rent would just balance out the extra mortgage payments they'd have to make by waiting for you.

The idea is fine, but knocking down the purchase price by the rent paid will be a non-runner I suspect.

MouseTail

What's in it for the vendor?

leelee77

Grandpa Hassan wrote: »

I don't see why the seller would knock the rent paid off the purchase price. You'd effectively be asking them to hold off selling until December, and in the meantime they might have a mortgage to pay, which they wouldn't have to pay if a buyer came in next month and took it off their hands. The rent would just balance out the extra mortgage payments they'd have to make by waiting for you.

The idea is fine, but knocking down the purchase price by the rent paid will be a non-runner I suspect.

I was reading up on rent to buy schemes and taking off the rent seems to be the norm.

leelee77

MouseTail wrote: »

What's in it for the vendor?

Well the property has been vacant since May, they are living abroad presumably paying rent and mortgage and there isn't a whole lot of interest in the house so I guess they would be getting income straight away and then in a few months the sale would go through.

leelee77

monflat wrote: »

[you sold) te="leelee77;91756347"]Hi all,

I am hoping someone can help me. We went to view a house today and it is pretty much perfect. Unfortunately the timing isn't great for us. We have sold a property in the UK and it is going through mid-September. That will give us the 10% deposit required. We have also been saving money for only a couple of months so it will be the end of November before we have the required 6 months savings in our bank account.

The house that we looked at today was sold a few months ago but the sale fell though. The sellers have since moved to America so the house is vacant and obviously they want it sold asap. I was going to approach the estate agent to see if the seller would accept a rent to buy agreement until our mortgage went through but I am unsure how to approach this.

We would like to bargain down the price a bit as well so would I go in with that suggestion and then try to bargain down or how would I work it? Also - I would be suggesting that whatever we paid on rent would come off the purchase price.

Does this sound crazy and how would should I approach this?

Thanks in advance.

Would you do it if your property( thatypu fell through on sale once then do what you are asking for the next "potential " buyers???[/QUOTE]

Sorry - don't understand what you are asking?

leelee77

I guess it really depends how desperate the vendors are. The estate agent was lovely and gave the impression that they needed to get it sold asap but it has been on the market for 3 months now. They reduced the price last month as well.

monflat

Sorry about that
With a sale already fallen through would they be willing to take that risk.

The question would be there.
If ye were to pull out too?


It would be worth asking anyway

chris85

So if the estate agent said they need it sold asap why would they come to some sort of rent to buy arrangement. Nothing in it for them. Ultimately if they wanted it rented they would rent it out but they want to sell and your offer would not guarantee this would happen.

leelee77

monflat wrote: »

Sorry about that
With a sale already fallen through would they be willing to take that risk.

The question would be there.
If ye were to pull out too?


It would be worth asking anyway

I'd say they are very cautious now. I might leave it a week or two and see what happens

leelee77

chris85 wrote: »

So if the estate agent said they need it sold asap why would they come to some sort of rent to buy arrangement. Nothing in it for them. Ultimately if they wanted it rented they would rent it out but they want to sell and your offer would not guarantee this would happen.

True that they would already have rented it out if they wanted to rent.

I don't agree that there is nothing in it for them though. They would be getting an income on a house that has laid empty for 3 months and has had little interest. I know their preference would be to sell but no-one (including me) knows their circumstances and they might be willing to be a bit more flexible.

I am going to leave it for the time being though.

MouseTail

Its too risky for the vendor, they acquire tenants, that they never intended, who are in a chain, and who may or may not complete the purchase.

The_Conductor

So- its been on the market since the middle of June- they went sale agreed, and it fell through.

Its the summer time- nothing is happening at the moment. The fact that they went sale agreed- means there is demand in the area- and once the property market opens again in September- they will have no issue whatsoever in selling it.

If they do agree to a rent-to-buy scheme (which they'd be barmy to, imho)- property prices are rising nationally- there is no reason they should be tied into a price agreed now, for payment in 6 months time- its entirely possibly they may have an asset worth 12-20k more, than its current open market value.

There really is damn all up-side here for a potential seller.

So what- the sale fell through- almost 70% of sales fall through for various reasons- this is not a stick you can hit the seller over the head with- esp. given its summer time- and property sales won't really start again until September.

leelee77

The_Conductor wrote: »

So- its been on the market since the middle of June- they went sale agreed, and it fell through.

Its the summer time- nothing is happening at the moment. The fact that they went sale agreed- means there is demand in the area- and once the property market opens again in September- they will have no issue whatsoever in selling it.

If they do agree to a rent-to-buy scheme (which they'd be barmy to, imho)- property prices are rising nationally- there is no reason they should be tied into a price agreed now, for payment in 6 months time- its entirely possibly they may have an asset worth 12-20k more, than its current open market value.

There really is damn all up-side here for a potential seller.

So what- the sale fell through- almost 70% of sales fall through for various reasons- this is not a stick you can hit the seller over the head with- esp. given its summer time- and property sales won't really start again until September.

No, it was for sale for about 6 months, went sale agreed, then the sale fell through. It then came back on the market in May and still no offers.

At the end of the day, nobody knows whether they would go for it or not unless I ask them, which I have decided not to now, as it would be too messy.

A similar thing happened to close friends of mine recently, sale agreed on their house, then the sale fell through. Luckily family have decided to rent off them for the time being. We discussed the rent to buy scheme and they would have accepted a deal like this if it had been put to them as there isn't a lot of demand in their area. So some people are in a more desperate situation and need to think outside the box.

Anyway - what will be will be. Unfortunately this one seems to have come onto the market a few months ahead of when we are ready. Hopefully another one will turn up.......

hickory

There is a tax implication for the sellers. Rental income is taxed same as salary, sale of principal residence has no tax, so if you deduct the rent paid off the sale price it would not end up as the same amount of money as if bought outright. Therefore asking to deduct the rent is a large ask given both the tax and fact they have to pay interest on mortgage during these months. From your post I am guessing you do not have mortgage approval, which may be the biggest stumbling block.

Eldarion

You'd be taking the seller for a mug if he agreed to what you're asking. And then worse yet you plan on low balling him after he agrees to your severely lopsided terms.

By all means attempt the approach but don't be surprised to get a less than cordial response if he knows anything about property and the current market.

leelee77

Eldarion wrote: »

You'd be taking the seller for a mug if he agreed to what you're asking. And then worse yet you plan on low balling him after he agrees to your severely lopsided terms.

By all means attempt the approach but don't be surprised to get a less than cordial response if he knows anything about property and the current market.

If you read previous posts you would see that I have decided against this approach. And I was not attempting to 'low ball' anyone.

Please take your frustration out on someone else, and please read the rest of the thread before jumping in.

The_Morrigan

leelee77 wrote: »

If you read previous posts you would see that I have decided against this approach. And I was not attempting to 'low ball' anyone.

Please take your frustration out on someone else, and please read the rest of the thread before jumping in.

leelee77 if you have a problem with a post report it and let the moderators deal with it, do not take matters into your own hands as you've done here as you could be the one facing an infraction.