Offering to buy landlords house

mea_k

I'm jot sure has this asked before, at least I couldn't find it..
My landlady is amazing, have very good relationship, me and my partner will be buying property this summer - family home for us and our 4 year old.
We love home we live at right now. And would like to propose to landlord a sale.
Has anyone asked this and have been successful. Also her house is still on mortgage I reckon another 20 odd years left on it. Would that be something any landlord even consider?
Also is there any way how I should propose this, request meeting or write letter!

Thanks

Wabbit Ears

mea_k wrote: »

I'm jot sure has this asked before, at least I couldn't find it..
My landlady is amazing, have very good relationship, me and my partner will be buying property this summer - family home for us and our 4 year old.
We love home we live at right now. And would like to propose to landlord a sale.
Has anyone asked this and have been successful. Also her house is still on mortgage I reckon another 20 odd years left on it. Would that be something any landlord even consider?
Also is there any way how I should propose this, request meeting or write letter!

Thanks

No harm at all in asking but expect them to decline.
I just ring them TBH, there isn't a formal way of asking such a thing.

jrosen

I would just call and ask tbh. We have been on both sides of the coin. Its just a casual conversation.

Samuel T. Cogley

There's a lot of reasons why you may get a no - a tracker rate is just one. However you're not going to know until you ask are you?

Go for it. Keep it as casual as possible.

3DataModem

mea_k wrote: »

I'm jot sure has this asked before, at least I couldn't find it..
My landlady is amazing, have very good relationship, me and my partner will be buying property this summer - family home for us and our 4 year old.
We love home we live at right now. And would like to propose to landlord a sale.
Has anyone asked this and have been successful. Also her house is still on mortgage I reckon another 20 odd years left on it. Would that be something any landlord even consider?
Also is there any way how I should propose this, request meeting or write letter!

Thanks

I know two people who have done this.

Why this is attractive to a landlord:
- They know the buyers are serious (they are less likely to pull out)
- They know the buyers are credible (they can probably afford the mortgage)
- They know the likelyhood of a survey being a problem is lower
- No EA cost (1% + VAT)
- No chain

Just give the LL a call. Don't discuss price.

Billythekid19

It might eventually all boil down to how much tax the landlord is paying.
A landlord that is paying tax on rental income would probably be a lot more likely to sell up.
If its a cash in hand rental arrangement then they may be more reluctant to sell up.

Fol20

Neither of the last two posters are correct as much of what they said will have very little impact the decision

-there are loads of serious buyers out there so just because you live in it does make any more or less serious.
-yes the fees that was charge are a good bit but by you selling off market. You could be loosinggn a serious amount of cash. Money talks and I actually bought one place that the owner was originally sale agreed on with the people that were renting but I came in with a much better offer than the tenants and he accepted me. Mine was still under market value but you get the idea
-if you are renting in cash or paying tax is irrelevant and has no bearing at all on whether they would sell, I still can’t phantom why this is brought up for such a situation.

-All you can do is have an honest chat with your ll to see if he has any interest in it.

His decision will be mainly linked to where this person is at in life
- maybe he is sick of the rental game and you suggested a way out
- maybe he is closer to retirement and now is or is not a time to cash out
-financial issues, maybe they might be short in cash due to other ventures they are on and this might be a sweet reminder of a way to settle other debts.
- he sees better alternatives to investing his money

The above 4 are the most likely reasons a ll would sell. Your ll is unique to his own stage in life so none of these might be applicable or by you reaching out might be a good reminder for the ll to reevaluate if he still wants to be in the rental game. As long as you have a decent relationship with the ll, the worst they can say is no or the best they can say is yes.similar to dating. Put yourself out there and see what they can say. I would say expect the worst. Hope for the best and who knows you could get lucky.

ted1

3DataModem wrote: »

I know two people who have done this.

Why this is attractive to a landlord:
- They know the buyers are serious (they are less likely to pull out)
- They know the buyers are credible (they can probably afford the mortgage)
- They know the likelyhood of a survey being a problem is lower
- No EA cost (1% + VAT)
- No chain

Just give the LL a call. Don't discuss price.

If i was the LL and was willing to a sell it. I would stick it on the open market to get the market value. I’d then let the tenant have it for what the highest offer is.

JimmyVik

ted1 wrote: »

If i was the LL and was willing to a sell it. I would stick it on the open market to get the market value. I’d then let the tenant have it for what the highest offer is.

That would be the smart way to do it alright.

arctictree

I know someone who this happened to. They offered to buy the house off the landlord. He agreed but said he needed to get it valued. Of course the EA who valued it persuaded him to put it on the open market. My friend said he would match any offer. The EA then persuaded the landlord to take the offer of the buyer they found (so the EA would get the commission of course). House was sold to the EAs buyer.

arctictree

arctictree wrote: »

I know someone who this happened to. They offered to buy the house off the landlord. He agreed but said he needed to get it valued. Of course the EA who valued it persuaded him to put it on the open market. My friend said he would match any offer. The EA then persuaded the landlord to take the offer of the buyer they found (so the EA would get the commission of course). House was sold to the EAs buyer.

Surely if it was marketed through the EA, the EA would have got paid no matter who bought it? Perhaps the buyer was cash buyer.

Effects

arctictree wrote: »

They offered to buy the house off the landlord. He agreed but said he needed to get it valued. Of course the EA who valued it persuaded him to put it on the open market. My friend said he would match any offer. The EA then persuaded the landlord to take the offer of the buyer they found (so the EA would get the commission of course). House was sold to the EAs buyer.

That doesn't really make sense though, does it. Why would he sell it to someone else if the tenant was going to match the offer?
It would still have had to go through the estate agent. You can't just use an estate agent to value your house, and drum up sales interest and potential buyers, to just walk away and sell it to someone else privately.

arctictree

Dav010 wrote: »

Surely if it was marketed through the EA, the EA would have got paid no matter who bought it? Perhaps the buyer was cash buyer.

In fact the original tenant was the cash buyer. My friend rang the EA after it went sale agreed and the EA said "..well the owner thought that the buyer that I found was more interested in the property".

arctictree

arctictree wrote: »

In fact the original tenant was the cash buyer. My friend rang the EA after it went sale agreed and the EA said "..well the owner thought that the buyer that I found was more interested in the property".

I think he’s pulling your leg.

1874

3DataModem wrote: »

I know two people who have done this.

Why this is attractive to a landlord:
- They know the buyers are serious (they are less likely to pull out)
- They know the buyers are credible (they can probably afford the mortgage)
- They know the likelyhood of a survey being a problem is lower
- No EA cost (1% + VAT)
- No chain

Just give the LL a call. Don't discuss price.

So are other buyers, if they have mortgage approval
They only know the buyer is as credible as they say or prove they are, same for any buyer
Survey? that EA might get them that 1% and then some
Might be no chain with someone else aswell

Billythekid19 wrote: »

It might eventually all boil down to how much tax the landlord is paying.
A landlord that is paying tax on rental income would probably be a lot more likely to sell up.
If its a cash in hand rental arrangement then they may be more reluctant to sell up.

It might, but thats more down to their situation overall
Id say its more dependant on how much the rent is, how much the mortgage is relative to that

ted1 wrote: »

If i was the LL and was willing to a sell it. I would stick it on the open market to get the market value. I’d then let the tenant have it for what the highest offer is.

This is the best scenario, whatever you might lose is gained by going official and knowing you got the market rate.
I had a tenant before that not only offered to buy a house I owned, but insisted he would buy it, said this to me a few times, started to pi$$ me off. I think he even put a figure out and when I said it would be much higher anyway, I believe he got tetchy about it, it went for even more than what I thought.
I suspected dealing with him for a sale would have been a nightmare.
I told him if I was selling it (which I actually planned to) that he could approach the EA.
Id suggest ask but dont push it, you might sow the idea, but if you pi$$ them off, they probably wont proceed with it, of course they might have zero intention of ever selling it or some other possible scenario.

arctictree wrote: »

I know someone who this happened to. They offered to buy the house off the landlord. He agreed but said he needed to get it valued. Of course the EA who valued it persuaded him to put it on the open market. My friend said he would match any offer. The EA then persuaded the landlord to take the offer of the buyer they found (so the EA would get the commission of course). House was sold to the EAs buyer.

If you go with an EA, depends on the contract, but you would be tied to them to sell and give them the agreed percent, saving 1% by not going with them might be lost by not getting market value, and a tenant (or anyone) competing with other buyers is better for the seller than 1 person coming in and offering what they think.

brisan

arctictree wrote: »

In fact the original tenant was the cash buyer. My friend rang the EA after it went sale agreed and the EA said "..well the owner thought that the buyer that I found was more interested in the property".

That is the issue a lot of people have