Landlord is selling our house

[MooChops89]

Just wondered if anyone has been in this position?
We've rented here for 4 years, great relationship with our landlord, an opportunity has come up for her to buy her dream house which means her selling her own house and the one we rent.

We don't have any savings for a deposit to buy this house and we probably have about 3 months to get one together.

No idea what we're going to do! I haven't got the faintest idea where to start and if we'd even get approved for a mortgage as we have outstanding loans and credit cards.

We could rent somewhere else but we love where we live and we don't want to be forced to move somewhere we don't like

Obviously it's one of those things you're at risk of as a renter but it's blindsided us a bit!

Has anyone been there and it's all worked out??

Not been in this situation but have spent a lot of time on the Money Saving Expert house buying and renting forum: forums.moneysavingexpert.com/categories/house-buying-renting-selling

I'd really recommend you have a look or post there too, lots of knowledgeable people who can advise.

From my understanding, your landlord will need to issue you a section 21 notice which is a no fault eviction. I think that gives you two months notice, however this is just the time the landlord has to wait until they can apply to court for possession. They will then need to wait for a court date, which can take many months as there are backlogs. I believe you can remain legally in the property until the court approve the eviction, so you may have longer than you think.

Also consider Shelter, they have great info and advice. Essentially you have a lots of rights as tenants, make sure you know them. Good luck!

Do you want to buy the house? Why not apply for a mortgage or speak to a broker to find out if you are suitable candidates. That would be a good place to start rather than worrying about it.

If you cannot get a mortgage then you need to start looking for somewhere else to live. Hopefully your landlord will give you some time to sort this out.

Buying this house would be best case scenario yes.
Someone is coming to do a valuation tomorrow so hopefully we'll have an idea of what we're aiming for with a deposit.

Good luck with the mortgage broker OP. You may be pleasantly surprised.

Do some research for what properties around you go for and work out if that's affordable on your current earnings. If it's doable then do all you can to raise a deposit.

Would there be room to do a private sale with your landlord? She would save a couple of percent of the value in fees.

Lots of landlords are selling up OP, which is causing more pressure on renters looking for other places to live. Once the valuation is done at least you’ll have a better idea of what you’re aiming for. All the best.

Yes it's happened to us, and to my friend. Before kids it also happened to me a few times.

We found a new place to rent. It was a better place as things turned out.

It is a pita though, finding a new deposit, packing, cleaning etc

Following out of interest

@helly29 why advise to make things as difficult as possible? Stubbornly staying on in a house, ruining the relationship with the landlord, just to be able to stay on for a few months? Why not advise to be proactive, meet with a mortgage advisor, register with local letting agents, see how they can save for a larger deposit when the time does come to buy?
I hate it when people think the default position is to hang on for dear life, creating bad blood and unnecessary expense for the landlord just to delay the inevitable.

Have you been saving to buy your own house? I’d definitely try & buy from your landlord if you can. You’ll also need money for legal fees, stamp duty & moving costs though, so not just the deposit.

@easyday I'm not suggesting that at all, but why should they be rushed into potentially unsuitable accommodation through no fault of their own?

Knowing your rights helps you assess what your options are. I've not suggested being deliberately difficult. At the end of the day, landlords are running a business and the property is the tenant's home. If the landlord wants easily liquid assets then a buy to let property isn't it.

OP you have my sympathy, I have been in this house for nearly 8 years with my children and our dog and my LL is thinking of selling.

Competition for rental properties is rife here, and you also need 3/4 times salary over cost of rent, i.e your rent can account for no more than 40% of your salary. So, as pp said they can't force you out until there is a court order in place...its not want anyone wants really...but it may come to that if 2 months down the line you haven't found anywhere appropriate.

If I was ever to sell I'd knock off a sizable chunk for my tennant but as they have been there over 14 years I dont think they are inclined to buy. Worth looking into.

On a side note if my Tenant strung out the eviction process I would be heavily inclined to default on the mortgage and get it repossessed. It's been rented out for 17 years so although not a fluid assest you cant predict job loss or death for example so it should always be a realisation to tennants that a lot of btl are mortgaged. No rent = no repayment and the bank wants that cash as much as the landlord. My Tennant was utterly shocked I had a mortgage on the house. I rent where I live currently. I have never viewed it as secure.

Can you ask your landlord if she'd consider selling the property as a buy to let wit you as the sitting tenant. You run the risk of the next landlord not being great but lots of landlords like it as a solution because they will immediately have an ongoing source of income from a reliable tenant.

I thought I had heard of something like this:
www.themortgagehut.co.uk/expert-articles/first-time-buyers/52/landlord-deposit-mortgage

It might be worth asking your landlord if they would consider selling undervalue and then speaking to a mortgage broker.

If you have no where to go your landlord will not be able to sell in a hurry as they will need to give you proper notice/go to court etc and it is likely their dream house would be sold. It's quite likely the house will sell before they have the chance to sell two houses anyway. Will they change their mind if it is sold?

Thanks for your replies everyone.

We haven't considered buying before so haven't been saving for a deposit - we have literally nothing to put forward and it seems impossible to even try in 2 months!

Good point about her being able to sell 2 houses before the other one disappears - no idea if she'd change her mind, or if she'd look for something else now the idea is in her head.

A possible saving grace is my mum's boss / family friend who might be able to lend us the deposit. A big might though.

Feel like I'm in a nightmare right now, can't believe it's happening and I feel a bit hopeless!

OP I think you need to do some research. What are your earnings? What do similar houses in the area sell for?

Could you ask your landlord if she would be willing to give you a discount due to you renting and living there for 4 years if you was to buy the property? If she would agree, once its valued she could let you buy the house with the discount as your deposit.

www.themortgagehut.co.uk/expert-articles/first-time-buyers/52/landlord-deposit-mortgage

This is what i mean OP hope this helps

Similar thing happened to me
OP: absolutely loved the place I rented but couldn’t afford to buy as I didn’t have enough deposit, although ironically the monthly mortgage would have been less than my rent! .. Had to find another place but still feel heartbroken when I pass our old place as I miss it a lot.

It is so hard to get on the housing ladder when rents are so high. I hope it works out for you.

How did you get on @MooChops89 currently in this situation now!

No fault of their own
They are living in someone else's house.
You need to move out if they want it back and thank them for renting it to you.

Hello! We were very lucky that a family friend did lend us the deposit to buy a house after all. We didn't buy the one we were renting as she wanted more than we could afford - and it also needed a bit of modernising which we definitely wouldn't have afforded.

We did have to move area but we are very happy where we are now, an arguably nicer house, yes in a less desirable area but we have great neighbours and the kids are happy and settled in school so it all worked out for us in the end!

Sorry you're going through it too - it was so stressful at the time to the point I was having panic attacks at work because I felt it was time I could have been using looking for a roof over my children's heads!

What are your options?

Thank you for your reply! @MooChops89 we're in a slightly better situation in where we have a deposit due to me having my inheritance but the landlord also wants too much. Infact 50k more than the house is worth so I'm so gutted as I love it here! Just had a baby too so not ideal. Glad it worked out for you and gives me hope in our current situation! Feel like we will also have to look in a different area despite loving the one we're currently in!