how should we let our landlord know we are interested in buying?

[Mytholmroyd]

We have relocated to a new area and been living happily in a rented house for over a year. If this house was for sale, we would be interested in buying if we could afford it (lovely location and village) and the necessary extending/renovations.

We have reason to suspect (but don't know for sure as purely hearsay and gossip) that the house is not a long-term rental property (no previous tenants) but might be for sale in the future. It had been empty for many months when we moved in.

We are unsure how to let the owner (who lives in the village) know we would be interested in buying if they were interested in selling and would be happy to continue to rent until the time is right for them to sell. We don't want to cause any offence or make an unwelcome approach that might result in them giving us notice to quit. Should we approach them directly? Do we let a few key neighbours know we would love to stay here? Is the protocol only to communicate through the letting agent (we've never rented before so don't know the procedure)? Should we just sit tight and wait?

Is it completely out of order/illegal to get the house valued so we have some idea of what its worth and if it is simply a non-starter financially? It's not easy to estimate the value as it is an individual rather ugly house in a lovely location on a big plot but out of keeping with surrounding houses. It is "modern" 1970's brick and render and partly flat roofed in dire need of updating, whilst they are mostly 18th century Pennine weavers cottages and grander houses built and roofed in old local sandstone.

I'd be very grateful for any suggestions, insights or experiences anyone has!

I think it would be out of order for you to get a valuation done as you are not the owner.

I would approach the letting agent - the worst that can happen is the landlord/owner will say NO!

If you've the landlords details, I'd go directly to him. By removing the agent from the enquiry, it would be more direct, possibly cost saving to him and you and also, I don't trust agents so the message may not be relayed correctly.
Approach it in a way that you might be interested, without deadlines or ultimatums and avoid mentioning price until you've established if it's even an option.
His answer will probably be "if the price is right." at that stage then you can ask him forpermission to get it valued

I did this - appproached the landlord directly - I think it over complicates it with the letting agent -and they might have to pay commision if they get involved - it worked well enough - I would ask in principal - and then if they are interrested agree a procedure for valuation - perhaps three estate agents? Then think what your top price would be and maybe get quote for the building work - can't see why if would cause offence or make them give notice to quit - its a complement on their house

We have a flat that we rent and would have no issues with our tenants approaching us directly, in a letter or email, if they wanted to buy the flat. In our case the answer would be no but we wouldn't be offended to be asked.

If you want an idea of the value look on the Land Registry website for selling prices of similar houses that have sold recently.

Like nocake, I rent out a couple of flats. One of my tenants sent an email recently saying that were I ever to sell, he would be interested in buying and I replied that it wasn't likely to happen. It would have been a bit odd to be offended by his approach.

Just ask them. It is not offensive.

I would be happy to be asked, although the answer would be no at present.

We bought the house we were renting directly from our landlady - like others have said, it's really not likely to cause offence to approach them directly! Do your research and decide how much you are prepared to pay, and go for it!

Thanks for the feedback everyone - glad you think it wouldn't be taken the wrong way and its very useful to hear from the landlord side! I am just worried about village politics and that they may not want us to approach them directly - although the landlord did introduce himself shortly after we moved in.

No similar houses to compare with really - I am not sure how much the look and state of the house affects the price of the plot/property as a whole. If the house was a character property like the rest I think it would be easy to estimate it - ie we have a good idea of what it would be worth once we had done it up and up/extended/improved the exterior but not in its present state.

If my tenants buy I have to pay the letting agents an exorbitant fee. So avoid them.

Thanks munchkinmaster - yes, several of you raise the issue of paying a fee if the letting agent is involved in a sale, I hadn't thought about that so will definitely avoid involving them unless the landlord wishes to do so.

We sold a house in this exact scenario. Our tenants approached us and we decided to sell to them. Letting agents do get commission - there is usually a standard clause in the agency contract that they entitled to x% commission due to introducing the tenant if you sold within 12 months of the termination of a tenancy agreement. But.....it's an easy sale - they obviously want the house since they are already living in it. Our letting agents were fully managing the property in any event and were estate agents as well - certainly our easiest house sale to date so I certainly didn't begrudge them their commission fees.

We did this (although the answer was no) but the only other point I would make if you approach the landlord is that you're interested in this house, not buying in general. Thats the only possible worry for the landlord, that if he says no, and he thinks you're looking to buy, that you'll be looking to move out. Thats when he'll worry about losing you as tenants and might serve notice if he hears of other potential tenants that would be interested in renting the house.

Most agents include a clause in the contract with the landlord stating that they get an enormous fee (often twice what you'd normally pay an estate agent for selling a house) if the landlord sells to the tenant. We crossed this out on our contract because it's completely unreasonable. The agents have done nothing to ern that money so our agent had no problem with us removing it. So all you landlords, when you renew your contract just cross that clause out.

Yes, point taken Mandy21 - we are wanting to buy but because we didn't know the area at all thought it best to rent first and see how the children settled etc. We love it here and are all very happy with the village school and the kids don't want to leave now so we would like to stay in the village - but it's only small and there have been no suitable houses (all either too small or way out of our price range) on the market in the time we have been here.

I don't think the landlord is a professional landlord as it were (so he may not be aware of this clause) I think (but could be wrong) it is one the family's houses that is no longer required (he has quite an extended but shrinking family here in the village).

Gosh - I am making it sound like some weird inbred rural backwater - it's not really!

Your landlord may be able to lease to you without the agency for a period before you buy to get out of any clause. It's his problem really to work out. I'd like to sell to my tenants as, as was said above, it's easy and this is my plan.

when I let a house there was a clause in the agreement that said I would have to pay the agents their commission if I sold to the tenants within six months of the lease ending. The matter didn't arise but do check the lease.

I agree - just ask the landlord directly, saying that if he is not planning to sell you still want to stay in the property. If he wants to sell and you want to buy it will happen, if he doesn't want to sell he probably still wants you to stay as tenants.