Landlord selling, but won’t sell to me

[Flora73]

After 11 months in the house, my landlord has issued a section 21, my contract rather conveniently contained a break clause so he can do this earlier than the 12 month mark.

I have a mortgage in principle, I’ve been looking for somewhere to buy but he has rejected this and said I still have to leave as they want to maximise the sale price. He has even said that I move out and he will let me know which agent it is on with so I can purchase it that way. It just seems utterly bonkers.

And before anyone lays into me I am fully aware that it is his house and he can do what he likes, and I have no rights, but I can’t work out why he won’t sell to me. We’ve had a good relationship to date with no issues.

Can anyone thing of reasons why this would be?

Also, I’m not sure why you are cross about the break clause. They are a normal thing to have and they can work well for tenant's too.

He will have to pay estate agent fees if he has already signed up to market regardless of who he sells to. But if you can move quickly you could negotiate as confirmed buyer no chain, have funds, if not in market no agent fees, won’t need to refurb for marketing and if you move out you are more likely to buy or look around at other properties as don’t want hassle of moving twice! Offering market value. Of course will still need a survey. Properties aren’t selling so no guarantee will get better offer. Bird in the hand etc

It's because of the reasons already listed by people @Flora73 Sadly, it looks like you will need to go trhough the estate agent. He can't stop you doing that can he? Does he want you out before he puts it on the market? How annoying. Nothing you can do about it though. Sorry.

I am a landlord and if it was me I would be happy to sell to a tenant to avoid the hassle and expense of estate agents and missed rent while it's on the market, as long as you were offering minimum the home report value. They probably think they can get a good amount over the value I am guessing.

This.
Then go slightly higher than their top end (if you can justify this).
I assume that given there's no chain, you could move pretty quickly on things - it's not like you'd need to arrange moving.

If it's at there top end of what he could get and could be resolved in the minimum time, then great. If it falls through or it takes too long, then there's the s.21 to fall back on, and you leave.

I’d also still look at other properties if you have the funds. See if you can upgrade rather than stick to what you know

Have you a figure in your head of what you would offer? I think you need to essentially present what your offer would be to him and then he can make the decision whether he accepts that or goes to open market. Do your research on comparable properties in the area etc. Come up with a figure and then he's got something concrete to work with.

I don’t think there’s any ulterior reasons, just what he’s told you. It’s perfectly reasonable for someone to want to sell their property for the best price they can get. That’s it’s worth: what someone is prepared to buy it for, and presumably he believes he’ll get more than you can offer. As you have a mortgage in principle it seems you were already looking to buy, so if he hadn’t wanted to sell, you’d have been moving out anyway, yes? So basically, each of you is acting in your own best interests- you wanting to buy a house rather than rent, him wanting to secure the best price for his house. Nothing wrong with acting in one’s own interests.

Why don’t you ask him what the property has been valued at (assuming it’s being sold vacant), and then offer him slightly above this?

As someone who got onto the property market by buying the flat I rented from the landlord I do see your point, Op.

Our landlord sent 3 estate agents round to quote on the property, and we agreed a price bang in the middle. Fair and transparent.

Thank you. Yes, he wants me out before even any agents come round. I guess in my blinkered world it repent make sense, but it clearly does to some.

I find the responses rather snippy. When we planned to sell ours the tenants were the first people we called to check if they were interested. It’s decent behaviour and doesn’t mean anyone’s getting a knock down price.
The property market isn’t great, hope he gets a nasty awakening, although it won’t help you.

It hasn’t been valued yet. The only valuation he has (that I’m aware of) was prior to me moving in last June.

how much are you really willing to offer though?

Would you be happy to pay above the asking price to secure the property?

Exactly!! It’s decent behaviour to ask. The house has a limit as to what it is worth. I’m not going to get a bargain because I’m already in situ.

@Flora73 As an ex landlord, I agree with you it seems very strange. When I needed to sell my property, I would have loved it if the tenants wanted to purchase it as there would have been no estate agent fees or time and money wasted constantly maintaining an empty with all the bills (c tax, standing charges and empty house insurance) and mowing the garden including potentially doing viewings. He also would know you’re not l8kley to suddenly pull out either so more assuring there. Dream scenario really!

Makes me wonder if he’s not really going to sell, but just wants you out and then will re-let to family or some such…

Here is a list of pros and cons selling to a tenant.

https://www.openpropertygroup.com/news/should-i-sell-to-my-tenant-7-considerations-before-you-offer-your-property/

I probably would pay over the asking price yes, just to be able to have some stability.

I think most landlords would be advised to do it this way.

In fact most of the landlords that don't do it this way are the greedy selfish ones, trying to extract the maximum rent possible while giving their tenants all the hassle of the sales process and no benefit from it.

If you keep the house tidy can you remain there while it’s on the market and put an offer in like anyone else?

I think he’s barmy. The housing market is collapsing. He’s got a ready buyer and no estate agent fees.

This is exactly what I think will happen. Or maybe he’s selling to a relative. I don’t know. I just don’t want to have to move again so soon!!

Find out what the average estate agent charges - it’s generally around 1% + VAT of the sale price in my area but can be more. Then ask your Landlord what he intends to ask for the property (be a good idea to ask to see estate agent valuations at some point) and calculate what he will end up paying to the agents. Remind him that at the moment the market is dreadful following the stamp duty increase in April. Point out that he can save the selling costs and delays caused by marketing, viewings etc by selling direct to you.

That’s not how the housing market works. The estate agent does not have a magic crystal ball to predict how much someone will be prepared to pay. The estate agent simply provides a guide price. Then hopefully a few people make an offer and the seller can choose the best offer.

No decent landlord will want to advertise a house with a tenant - puts buyers right off, for very obvious reasons.

If the house market is really collapsing, it would make even less sense.

It's not a friends relationships, he's making a business decision, perfectly fair. You might dislike it, but he's not doing anything wrong, morally or else.

If you know the price you can always out in an offer during your notice period. Say what it is and it’s dependant on a quick decision and you staying put until completion.

Note that if he doesn’t sell within a year and the property is empty he will be on the hook for double council tax. Until then it’s still single council tax. He might be open to persuasion.