Wanting to buy rented property from landlord - how to approach?

[katmunchkin]

I've lived in a rented property since July 2021 after separating from my now ex. We've just completed the sale of my half of our house to my ex, and so I now have around £50k sat in premium bonds doing not much. I found this property through a small letting agent (LA) and he went above and beyond to secure me the property, despite the fact I had no references etc (as I had never rented before) and the property was in very high demand. I've seen the LA several times since, when he did my 6 month inspection etc. I've also met the landlord twice, when he popped round to do some minor repairs when I first moved in.
I'm starting to think about buying somewhere for myself - I earn a good salary for the area and have a decent deposit say waiting. However nothing seems to be coming on the market that ticks my boxes and is suitable! I am also paying approx 4 times in rent each month than a mortgage would cost me, which seems silly.
My question is, if you were a landlord how would you take an approach from a tenant asking if you would be interested in selling your property to them? And should I do this through the LA, or direct to the landlord (I have his number, but all repairs etc are done through the LA)?

I' m not a landlord but, unless your landlord was planning to sell up anyway, and you could then ask to buy it, I can't see why he'd be interested in selling it to you tbh. As you've said, you pay more rent than a mortgage would be so it's in his financial interest to maintain it as a rental property, surely?

If you were to apprach him, I'd say to do it directly rather than through the LA, but I'd expect him to say no.

Thanks @PineappleWilson , I'm well aware it will probably be a no, it's just in case he was considering selling one of his (considerable) portfolio, and wasn't aware I was looking.

I'd sell to my tenants if they asked today and would offer at home report value too. It's actually a bit of a burden and the costs are high considered all in on top of the mortgage (also considering I'm taxed on all the mortgage payments bar the interest) so doesn't really make a lot of financial sense for me personally, I just feel a sense of responsibility to the tenants.

If you don't ever mention it, then your landlord won't ever know that you are interested in buying. So just put the feelers out and say something like you'd love to have first refusal if he ever decides to sell. See what he says!

I was in a very similar position and I just asked my letting agent to ask if they were considering selling.
They weren't, which is fine of course. I just didn't want to find something, give notice, move out and then see it on the market 6 months later!

I would ask the landlord directly

I would also ask the landlord directly. The letting agent had a vested interest in the Landlord not selling or selling through them, so they get the commission.

If the landlord is thinking about selling, they are likely to be happy to skip the estate agents commission bybselling directly. Also properties that are let out tend to sell for less, so if your landlord is thinking or selling one of their properties you will save them having to keep it empty and loose a few months rent or sell at a lower profit with sitting tenants.

I'm an accidental landlord of a small property I've inherited. To be honest it was a pain renting with all the rules (electrics, gas inspections ect) plus don't get me started on Hmrc, I asked to pay tax January one year, was December before they answered letter and they made a right mess of it that has only just been sorted out! If those tenants had asked to buy I would have been ecstatic. As it was it was just a 6 month let but I haven't bothered again, one of my sons is living in it rent free. Just ask, at least you know then if it's a possibility or you need to start looking elsewhere....... No harm can come of it🤷

Just go for it and contact the LL, you have nothing to loose and may get the result you want.

We sold last year and we're happy to sell to the tenant but they seemed to think they should have a discount equivalent to the rent they had paid over the previous 3-years. Clearly this was not on and it went onto the open market where it went for well over the asking price.
If they had offered the asking price and / or anything near it then they could have bought saving us fees and a lot of work. As it was they had to find elsewhere to live but the ironic thing was that when it went onto the open market they then offered the asking price (and asked to do a private sale) but by then it was too late.

You could ask , nothing to lose. Good luck

You can ask. We've asked twice to purchase the property we rent but been told no both times. It's not affected us in as my way, we'd still like to buy the property but I can't see it happening.

Thanks all. I wouldn't be expecting a discount equivalent to the total of the rent I'd paid , and if the price was right then would be willing to cover the LL's selling costs etc if necessary. I just wouldn't like to rock the boat - if he said no, he'd then know I was considering moving out and I wouldn't like to be pushed out as I'm on a six month rolling tenancy. Time to put on my brave pants and send a message!

I asked my landlord direct - too much chance if the message being changed by the time it got to the landlord! He didn't want to sell, but no harm was done asking. Realistically why would a LL get rid of a tenant that always pays the rent on time and looks after the house, just because they may serve notice in the near future?

We bought the house we rented. Landlord was an accidental landlord and clearly not managing very well (taking months to get things fixed, etc) so it seemed worth asking. We asked via agent as we never communicated directly with landlord and had a good relationship with agent.
It can’t hurt to ask!

Definitely ask!

Our landlord is downsizing his portfolio and sells of at least one property a year, usually after tenants give notice. He has already told us he'd like to sell to us, it's just a case of us being in the position to buy.
Yours may be similar. Being a landlord isn't as profitable as it used to be and quite a pain in the arse, I imagine!

Don't go via letting agency because if LL agreed to sell, they would possibly claim to have introduced the buyer and charge him an agency fee, which he'd want to recoup from the sale.

So, better approach the LL yourself and just say now your separation is sorted out you are considering buying a home , like his place very much and wonder if he is interested in a private sale to you.

Don't beg or pester , just wait and see what he says.
It would be worth finding out what mortgage you can borrow before approaching him.

Ask the Landlord directly, it sounds like you have a good relationship. He may decline initially but you have planted a seed for him to consider. What is the EPC rating of the property? (You will have been given a copy at the start of the Tenancy or easy to look online.) If it is rated 'D' or below your offer to buy might be attractive to the Landlord. Over the next few years the requirements are going to change. Rental properties will need to be a 'C' or above rating. Some Landlords may sell their properties as they may not be willing to pay the cost of having to upgrade the property or it may not be viable to upgrade the property and therefore can no longer rent the property out. Landlords needing to upgrade the property will be mindful of the disruption to Tenants and the associated costs and might also consider selling.
You might get lucky.