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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Good or Bad Idea?

62 replies

MochynBudr · 12/09/2019 09:20

Morning Mumsnet Grin

We have been renting our family home for just over 2 years. LL is a young man and he's brilliant. With the way things are, we are struggling to make any savings towards a house deposit so I've come up with a crazy idea. I was wondering if this is something you would consider at all?

LL bought the house for £114k a few years ago. We pay £700 pcm rent. I want to suggest that we love here rent free for 2 years and what we save in rent goes towards a house deposit. After 2 years, we use the money we have saved in rent to buy the house from LL for £125k.

I know it sounds crazy but is it something, as a home owner/landlord you would consider? I know there's more details to consider but on the while? Or am I bonkers? Blush

OP posts:
Macandcheeseplease · 12/09/2019 09:22

Crazy. He would think you are mad for suggesting this. Why on earth would he agree?? And who knows what the value if the house would be in 2 years time.

MrsMaiselsMuff · 12/09/2019 09:24

What incentive is there for the landlord here?

ShatnersWig · 12/09/2019 09:25

You're bonkers.

Seriously.

Funnyface1 · 12/09/2019 09:26

That's ridiculous.

MatildaTheCat · 12/09/2019 09:26

Have you considered how the young LL would cover his costs during the two years he has with no income?

Andallofasuddenitsover · 12/09/2019 09:26
Confused
TixieLix · 12/09/2019 09:27

It's pretty crazy. During the next two years your LL will still have a mortgage to pay on the house and is probably using your rent to do this (with a profit margin). By all means offer to buy it in 2 years at the market rate, but don't expect him to finance you in the interim - he'd be losing nearly £17K!

Sunnysidegold · 12/09/2019 09:28

So the landlord goes without rent for two years? Are you on glue (I've always wanted to say that!)?!

lovemenorca · 12/09/2019 09:28

Oh good lord OP
Your naivety!

He won’t be fractionally interested and will be perplexed at your daft suggestion

usernamerisnotavailable · 12/09/2019 09:28

Maddest thing I've ever ever read.

Greywalls12 · 12/09/2019 09:30

That's nuts, you'll look stupid for even suggesting it to him

Waspnest · 12/09/2019 09:32

I think you're bonkers sorry. Assuming it's a BTL how will he pay the mortgage every month? Even if he owns it outright maybe he needs that income? And how does he know you will actually pay at the end of the 2 years and not just do a runner and put down a deposit on a different property (and as pp says, how do you know what the house will be worth in 2 years time)? Let alone all the legal stuff. But it's an imaginative idea!

NoSauce · 12/09/2019 09:32

Is this a joke? What does the LL get out of this then?

bobstersmum · 12/09/2019 09:32

Ridiculous. And I'm guessing he rents it out because he does not want to sell it either.

InDubiousBattle · 12/09/2019 09:33

Why on earth would he even consider this!

Hahaha88 · 12/09/2019 09:33

So that's a straight up no then lol.
You want to live rent free , move in with family. Otherwise you need to find other ways to save, increase your hours, spend less etc

ShatnersWig · 12/09/2019 09:34

I'd also like to add if anyone suggests YANBU and stops this being a unanimous 100% YABU, they need to be sent for a psychiatric assessment along with the OP.

Original poster
MochynBudr · 12/09/2019 09:34

£125k is just a random figure, I was thinking a figure more than the market value of the house. So if in 2 years, the house is worth £120k we pay £135k. But obviously like you said, who knows what the house will be worth in a couple of years.

You're right! It is a daft idea, yes I am naive about hose buying etc. Thanks all Smile

OP posts:
Instatwat · 12/09/2019 09:34

Erm. No. I wouldn’t consider that in a million years.

Waspnest · 12/09/2019 09:36

Well 4% so far think YANBU - I'd love to know their reasoning! (I'm assuming they're not LL.)

katmarie · 12/09/2019 09:38

Do you know if he's considering selling? We're landlords, own a similar value property. We have no intention of selling, see the house as our children's inheritance, and would get absolutely no benefit out of this kind of deal. Why on earth would he let you live rent free for two years when he could have other tenants in there for two years, paying rent, and then sell it (if he even wants to sell it) for market rate?

In addition, if you want to buy a house for more than the bank think it's worth (which it sounds like you will be offering to do) you may find it difficult to get a mortage, or you may have to make up the shortfall in a mortgage offer yourself. So you would need to save, I assume, 5-10% deposit, plus the £10-11 thousand above asking price you're intending to offer. Even at only a 5% deposit that would mean you'd need to save around £17 thousand, just for the purchase cost, plus the costs of solicitors, searches etc (which you would still need even though you live there). Is that realistic? Plus ask yourself this, if you're going to spend £125 k on a house, is that the perfect one? Or is it just the one you happen to be in at the moment?

You would be better off looking at your budget and ways you can increase income, reduce outgoings, and take advantage of help to buy schemes.

lovemenorca · 12/09/2019 09:38

**Waspnest

Well 4% so far think YANBU - I'd love to know their reasoning! (I'm assuming they're not LL.)**

Who think not unreasonable??

GiveMeHope103 · 12/09/2019 09:40

Well so many things can go wrong, you could just up and disappear Confused

BrightonRox · 12/09/2019 09:40

Totally idiotic reasoning. This is the LL's property and he will need the income.

Original poster
MochynBudr · 12/09/2019 09:41

Thanks @katmarie

OP posts: