Is there any way to make progress with the sale of this property?

[Overwhelmedandunsure]

Briefly, I inherited a tenanted property 3 years ago.

Tenants are brilliant, and I was initially ok about being a landlord.

Unfortunately the property was mortgaged.

Mortgage company were ‘gentle’ and didn’t pressure me to repay. The timing was not great though as the fixed rate deal for the property was due to end in about 9 months.

The new repayments would be more than treble, and crucially, significantly more than the rent received.

The mortgage company would not give me a new fixed rate package as I didn’t meet their income requirements.

The tenants had always said how much they loved the place and I felt awful asking them to leave.

I was very surprised and relieved when they offered to buy the property.

We agreed a sale price at around 15% less than valuation. I was happy with this as it would be straightforward, have no agents fees and no rent void period. They were happy to get the place at such a good price.

The purchase, however, was dependent upon the sale of a property they owned.

Their property has not sold. They have done everything asked of them by various estate agents, including price reductions, different methods of sale, redecorating etc. It’s currently for sale for less than their purchase price. Zoopla suggestion ( I know they are not always accurate) is for a sale price of more than 20% higher than they are currently asking.

Incredibly this situation has gone on for over 2 years.

If they could find a way to just pay me what is outstanding on the mortgage I would happily defer payment of the balance for a year or so to give them time to sell, but if I place a charge on the property ( and as far as I can tell I’d be mad not to) it brings about issues with regulation regarding money lending which I’m not sure I could meet. At present they can’t get a mortgage for my property as they have one on their other property.

They are a lovely family and will move out if I ask them to, so I can sell to someone else.

I don’t want to do that if there is any alternative and I am putting up this post as a last ditch effort to see if anyone can suggest a way forward.

I think you need to accept they can’t buy the house and put it on the open market. I have no idea what the rules are with tenants anymore but whatever the rules are I would be giving them notice in accordance with them.

its been years, they can’t proceed so just put the house up for sale OP

Can they switch their unsold property's mortgage to a Let-to-Buy mortgage? And then apply for a residential mortgage for your property?

Speak to a letting agent. They sometimes have landlords who are willing to buy with sitting tenants.

Would they be open to and able to pay an increased rent that covers your mortgage repayments (and other costs) until their property sells?

Thank you for your reply.
I have already suggested this to them. Unfortunately they need the equity from their property to buy mine, ( even if I could initially stagger payment) and they would also need to pay increased Stamp Duty (which they may be able to re claim once their property is sold), and they don’t have sufficient funds to do that.

No worries, sorry it's so tricky. Rock and a hard place isn't it? Not sure what else to suggest but I hope it gets resolved for you - currently it looks like it needs to go on the open market and even if it does you have done everything right by them.

Thank you for your reply.

The current rent is comparatively low.

It’s not a great area for Buy to Let.

I’ve worked out that a new landlord wouldn’t be able to cover costs if they had to borrow the full price of the property, unless the rent was at least doubled, which would put it way over other local rents.

I had to take action with the mortgage as I stood to lose so much money, and was incredibly lucky that a friend of my late DH offered a private loan.

The rent does just about cover my current repayments.

At present he is not pressuring me for full repayment although we are past the initial period agreed for the loan.

I will be in a very difficult situation if he does ask for repayment.

Any idea why their house isn't selling @Overwhelmedandunsure? Is there anything wrong with it, in a bad area, on too high? Can't be just the market, there must be other reasons.
How sad and frustrating for both you and them.