Buying house from landlord...

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We’ve just had the house valued in order to buy it (landlord wants to sell) and we’ve been given an estimate on value.

Would you get more than one valuation done if you are happy with the price they gave?

What are the benefits for them selling to us? The estate agent seems to think that house may need a couple of things upgraded if they were to sell on the open market (something to do with electrics and windows have blown on a couple of the windows, I’m not sure?)

The house is generally in need of a new boiler which has been on its last legs (about 15 years old) and the house needs general maintenance from top to bottom - it’s not in a terrible state, it’s just nothing has been done to it at all in the 10 years we’ve lived here apart from us when we first moved in. Kitchen is very dated and in need of replacing as probably about 20-25 years old.

Would it be fair to expect market prices from us or could we ask a bit below as we’d take it as it is seen and no need for estate agent fees and they won’t be trying to sell with tenants in situ?

We are in an area that’s generally seen a lull in past months, estate agent says things are slow now for new houses coming on as they won’t beat the stamp duty cut?

Any tips or pointers would be great

I would definitely get more than one agent’s valuation as a comparison. Though I would expect the landlord/vendor to be doing that and then set his own price.
Landlord will be saving on estate agent’s fees, will not be losing out on any rent, and is also saving money by having to do nothing in the house so I would definitely take the valuations and then offer lower...

Are there any others locally that are better for the money without all those issues? Can you said to put all those things right on top if you don’t negotiate? If you’re insistent on that particular house then yes I would get at least two more valuations

Pay not said

I bought off my landlord and she accepted a much lower offer. She then had zero hassle at it was simply solicitor’s paperwork. One day it was hers, the next it was mine.
Also - things like electrics, boiler etc, any other buyer would be likely to put in a reduced offer to cover the work needed

Thank you for your comments, this is all really helpful. We’ve been trying to look into it but google only really is giving us information on “right to buy” which isn’t the case here!

OH is capable of doing all the work himself (I would help obviously) Locally there is nothing on the market in our price range, and we feel if the government choose to cut stamp duty again we will be priced out of the market

Good luck with this. We are hoping to do the same ourselves.

I would price up the building work, so you know how much is fair to knock off. I'd try and get quotes in from someone external so it's all clearly fair.

If the LL needs to sell you are in a strong position as selling on the open market with tenants in situ reduces the pool of prospective buyers.

The work needed to modernise the house would affect its inherent value regardless of who is buying it. I'd suggest the LL, as the vendor, should be getting valuations and then you can start negotiations on what you're willing to pay.

It may be in your landlords interest to sell earlier in the financial year (april, may) to reduce his CGT liability (if he has one)
You might be able to take advantage of that. Also, as a landlord is it possible he could have a new boiler fitted? There used to be schemes available for new boilers for properties with tenants ( but not for homeowners, that is a whole different thread, don't get me started.) Not sure if there is a current scheme. But you would have the advantage of a new boiler before you buy.

Given your update I wouldn't try to negotiate if the valuation is fair and you risk not being able to get anything else. The landlord is presumably also getting a valuation and I would expect you to be able to meet somewhere in between.

I’d get a couple of quotes and I would expect to negotiate a bit.

You know the property hasn’t had maintenance for 10 years and you know all the work that needs doing. The price must factor that in, and you can mention those things (politely of course) plus the fact of it being such a straightforward sale for them must be worth something.

It’s very hard to negotiate at all if you haven’t had more than one quote. It’s definitely worth getting more. And to be honest, if there’s work to be done, a surveyors report confirms the work needed which then gives you the ability to have it priced realistically. Essentially expert opinion from east ate agents and solicitors gives both of you the back-up to your opinions about value etc.

Given you’ve paid rent for 10 years, and assuming no estate agent has been appointed so there will be no fees there, most landlords would be willing to reduce the price a bit in recognition of the relationship you’ve had and the ease and lower cost of sale. You should expect something for these factors, if not a huge amount.

For the Landlord to sell to someone else, he will have to give you notice and unless you agree (which you do t have to) can’t show people around until you’ve actually gone. Given Covid makes it hard to give notice, selling to someone which isn’t you could be a very lengthy process for him and involve empty periods without rent.

So bear in mind, you are in a strong position. Dont rely on one quotation or expect to pay the very full market price but to get a bit of a discount. Recognise the difficulties for the landlord of getting you out and the timescales to get another buyer. You are in a strong position.

if you rented via an estate agent the landlord will still have to pay their sale fee. Benefits for him/her are no void period, each empty month costs the non-rent plus council tax, insurance and small amount of utilities, plus hassle. unless to another landlord, your presence makes the property impossible to sell at the moment because even if a sec 21 was issued today you could quite legally be there for another 18 months.

benefits for you are obviously no actual move and so much reduced hassle.

I'd get more valuations and also some quotes for the work, list it out get a builder over and get some quotes.

The range you face is that DH does the work, same here with us and we always undervalue how much that actually saves us.

So in your head it's no big deal, another buyer would knock say £20 off the value for the work.

Some people see replacing carpets and painting as "work"

But good luck. We had our rental we loved offered to us, but they knew at the time we had no way of affording it as I'd just a month earlier had a baby. ☹️

Do you really want to live there, if buying is an option would you prefer to have your own place and start from scratch?

I would definitely have another valuation and I certainly would be offering under the market value if no agency fees.

Good point about making sure this really is the property for you. Don't go for it just because it's the easy option. At least look at some others too.

You need a survey and then I would negotiate. You are in a very strong position to negotiate

We’ve been to look at countless other properties, only one we kicked ourselves for not putting in an offer. We are feeling a sense of urgency both due to our ages and also due to stamp duty. We’ve already been saving and looking for 2 years (nearly one year of that we couldn’t get a mortgage due to covid) so just want to get on with it really

Get quotes for all of the work required.. replacing the boiler, new kitchen, new bathroom, replace windows. A survey would be a good idea. Compare the valuation to other sold prices in the area on similar condition. Don't underestimate the value of OH doing the work himself.

Landlord will save doing renovations while house is empty, having to do viewings while there is a tenant in situ. There will be a saving in estate agent fees though the contract may entitle the estate agent to some fees if sold to an existing tenant.

We sold to a tenant and were willing to accept an offer based on ease of sale. Tenant knew what they were getting as they had lived in the house for 4 years so no surprises on the survey. Instead of waiting for notice to be served and the tenant to move out, we were able to exchange and complete quite quickly which suited us very well.

There will be a saving in estate agent fees though the contract may entitle the estate agent to some fees if sold to an existing tenant.

If the LA is signed up to the Property Ombudsman Scheme they aren't able to charge this unless there's a separate sales contract in place. (I discovered this today!)

It is very true that you are in Strong position, because the LL cannot evict you or give notice at the current time due to Covid. Therefore their options to sell to someone else are extremely limited, if you don’t choose to move out of your own accord.

If this really is the best property for you (and given there will be lots of properties, the chances that the one you rent is your ideal are actually small) then you should expect to get it for a decent discount off market value in the current circumstances.

Sitting tenants should all ways expect some discount however small because cost of selling and inconvenience is lessened for the seller. Here however, there is the additional fact that the property needs to be vacant before the landlord can exchange with a different party, and because he simply cannot legally get you out at the current time, a sale to anyone else, for well over a year could be impossible. He will know this and hopes you don’t. You now do.

Clearly, you aren’t looking to exploit the LL and that’s fair enough....but also don’t be exploited yourself. Get several quotes, be fully aware of the cost of work and ensure your offer reflects all of that and the fact the LL might not have many other selling options for a good while.

Best of luck. let us know how the negotiations go. You should expect to negotiate a bit...it’s the done thing in housing sales and you’ll pay over the odds if you don’t.

We don’t rent via an agent, it’s all done fully privately. Landlord has only ever done what they have legally had to on the property and we’ve done basic maintenance and have never been any hassle so we do pay a little under market rent I think for this reason.

Some really good points here, I didn’t realise there were covid rules for tenants right now but that is a very good point.

The house isn’t ideal, but none of the other properties we’ve seen have been either. We have the benefit of knowing all the good and shit bits of this place but it’s definitely not going to be our forever home so that’s ok. I think we just need to get a foot on that housing ladder now and stop faffing

If you had been happy to carry in renting for the foreseeable had they not been selling it due to lack of property available then go for it. Mortgage is a better investment than rent even if you only stay a couple more years. Least you will on the ladder like you say without the upheaval and cost of moving