The chance to buy the place I am currently renting... should I do it?

[duke748]

Hi all.

I am very lucky to be living in a gorgeous little flat in a village just north of Harrogate, North Yorkshire. It has a little stream running by it and is in a beautiful location. Inside, it has large rooms, is neutrally decorated and the kitchen and bathroom are a bit dated, but perfectly fine.

My tenancy agreement is up in summer and my landlord would like to sell it then. He has offered me the chance to buy it from him.

He moved away to live with his new wife in Wales. He now wants to release funds from the property to develop a barn on their current farm property.

I love the place and would love to buy it. However I am slightly hesitant as I am unsure of what is going on with the property market at the moment. In addition, I am single and do not want to over commit myself financially.

Now for the science bit.... ;0) ....I pay £495 per month rent, he bought it for £59,500 in 2000 and he had the place for sale in summer 2007 for £152,500 but could not sell it before he moved so rented it instead.

I have some valuers coming round tomorrow to let me know what they think it is worth now. However, I want to put in a lower offer than that for the following reasons....

1. I can complete whenever he wants, to release the funds exactly when he needs them.

2. There will not be a period of vacancy on the property seeing as I will rent it from him until I buy it.

3. He will not need to pay any estate agency fees.

So, assuming the valuers come in at something like last year's valuation of £152,500 - what kind of offer would you put in?

Or would you not even try for it and just rent somewhere else whilst we see what is going on with the property market?

Any ideas or advice would be greatly appreciated.

Duke.

For all of the reasons you are suggesting I would offer and be firm at £145,000

You really hold all the cards in this transaction - he would have to give you notice, there is bound to be a void period, he would have to instrauct agents, flats that are empty don't sell as well as ones that are in use..............

EA fees are around 1.5-2% so up to 3k plus HIP perhaps. What he paid is irrelevant, he may decide he could get more by going on open market. As an alternative he could decide to remortgage and release funds that way.

If it is somewhere you want to live long term, the price is right and you are in a position to buy, then worth considering but you may not see much profit on paper short term so try not to think of it as an investment as such .

I'm not a million miles away from you - urban property not rural - we have just accepted an offer 9 thousand less than asking - and had one accepted of 10 thousand less. So - assuming a 'value' of 150 000 = I would offer 140 000.

Sorry abourt the ` by the way - babY PULLING UP AND CAN ONLY REACH A FEW KEYS OOOPS

The point is that he couldn't sell it at £152,500 when the market was relatively strong so, unless he is very foolish - or thinks you are - he will have to give you a valuation lower than that one (unless prices in Harrogate, for some strange reason, are on the rise). Look on nethouseprices.com to see if there are any comparable properties that have recently sold and what they achieved.

I would wait until you get the valuation and work from there - I would think at least 5% below asking would be fair to take into account the lack of fees/sheer convenience for him. I would also not be above getting an estate agent in myself for a valuation to make sure that the ones that he is quoting are not toppy .

It sounds as if you really like the flat and, if you intend to stay there for a while and there is room to add value by improving the fittings, I would be tempted to buy it if the valuation seems sensible.

125 max

I have been told that 20% less than the asking price is the place to start when putting in an offer with current market conditions. You can always up your offer but not reduce it. He is getting a very good deal if you pay 10% less considering all his savings.

Thanks for all your responses.

Am doing a last go round with the hoover before the valuers come this afternoon.

Will let you know what they say.

No don't hoover - make it as messy as possible - throw some tea on the walls - trample dog poo into the carpet. Anything to get a low valuation

Also ask the estate agents what would the market it at and would they expect to have to accept for a quick sale - they are often 2 different things. Also ask what else have they had on the market that is similar, what did it sell for etc

Titchy- made me giggle. Very tempted, but couldn't be that mean.

CarGirl - yes, good point about the two different valuations.

The thing with this place is I don't think that there is anything else like it. Its part of an old mill that has been converted. A part of the mill is a block of flats and the rest is 3- 6 bed houses. Mine is basically squeezed in between the big houses and the flats. I guess its a 1 bedroom terraced house!

Will keep you all updated.

First valuation in at £140,000.....

fantastic, offer £130,000 maybe ??

Good luck, sounds like a lovely place

Second was £141,500 and third was £147,500. All suggested £140,00 was the price I should take (I told them I was the seller obviously).

Hanaflower - interesting idea. That would put the offer at £127,000. I have quite cheap rent, but then I also get a discounted mortgage with work.

It seems that most agents charge between £1500-£3,000 plus VAT and that the average house is currently taking 3-6 months to sell.

So, what do you think, an offer of £125,000, then going up to £130,000 if needed?

How did it go Duke?

Well, have decided to put n an offer of £125,000 to him in writing along with copy of mortgage offer and list of reasons why I am a good buyer!!!!

Just waiting for my mortgage adviser friend to return from holiday to get that paperwork ready. She will kills me if I give the commission to someone else!

Will let you know what he says when I hear back from the landlord.

Thanks to all for your help and advice so far.

Duke.
xXx

Ok, have put in an offer of £125k and am waiting to see what happens.

I put together a nice little letter detailing all the reasons why I think he should consider my offer. Now just have to wait and see what happens.

I know it was a bit of a cheeky offer, but lets see what he comes back with.

Way hay!

I offered my landlord £125,000 and he asked for £130,000, which I agreed to. Considering it was valued at £140,000 and was on the market for £152,500 less than a year ago.

He needs to give the letting agents 2 months notice, so I should own it in June!

Now, I just have to go through all the fun of solicitors etc. At least I don't have to worry about moving at the end of it!

Thanks for all your help and advice. Am soooo chuffed!

Well done Duke. Please for you

Delighted for you, which village ?, just the initial will help me.

Well done

same here, im intrgued to know which village!
I'm putting my money on 'K' or 'S M'