Sending section 21 today - should I 'offer' the tenants buy the house, if so, how?

[newstart1234]

Been putting it off, but I need to sell the property. It's the first time I've asked someone to leave - previous tenants handed in their notice when they became FTBs. A family with 2 children and pets, been there nearly a decade. The same type property will cost them around £300-£400 more then what they pay now. One parent working part time due to disability. I'm not cut out to do this - feel awful. I want to offer them the option of buying it - we would pass on savings from not selling through agent to them. Is there any good way of wording this proposition to the tenants? Does it come across as patronising/inappropriate?

Speak to them before you send the notice. Say you have to sell but ask if they are interested in buying and offer whatever discount. If you send the notice first they might be upset and in a state when you talk to them.

It will be a big shock for them OP, I had some friends in very similar circumstances. There is no way they could have afforded to buy their rental, £300-£400 extra per month they would not have been able to find. Of course offer them first dibs, but I expect they are renting as they can’t afford to buy. I know it’s area dependent, but the property they were renting and still in unsold 3mths after they moved out, and nothing much seems to be selling in our area atm. Good luck.

Not patronising.

If you know they have no hope of buying I think it could come across as insensitive.

My DH is a landlord and if he's ever had to issue a S21 which is truly 'no fault' then he goes round and has a chat face to face to explain why and see what he can do to help.

A LL cannot offer any help other than another property! So that’s a truly empty sentiment too, I’ve been lucky as we sold when a family moved out. I always manage through an agency though. I have sold another property but my rent wasn’t really below anyone else’s in the area. That’s part of the issue here, your rent is low so presumably you didn’t need the money and saw yourself as a social service. I would just be honest but don’t offer them a chance to buy if that’s taking the piss. They might have saved up the rent they haven’t paid for a deposit but I suggest that’s unlikely.

You are just going to have to put your big girl pants on.

Do you own just the one or multiple?

It's good of you to offer them to buy the house rather than just chucking them out and selling afterwards. Many landlords wouldn't so don't feel to bad.

Not patronising at all. Happened to a relative of mine who, luckily, could afford to buy once the "non-EA discount" plus a lower price for no chain or other hassles was factored in. He grabbed it with both hands.

The tenants keep the property immaculate, pay the rent on time and have always been accommodating to us visiting whenever we ask. I think we've really benefited from them being there especially as we were abroad and never had any reason not to trust them to look after the property so I don't think we provided the social service. I think it's been mutually beneficial. I just think it's unlikely they will find another set up like this.

It's in the north where prices have rocketed since Covid which is why the price difference is so noticeable now.

I really don't k ow if they could afford to buy. On the one hand the deposit is an issue , but the rent they will pay moving will be probably more than a mortgage payment. That age old problem. I don't know if they've had an inheritance or saved in the last few years.

Yes I'd Ben happy to give them a good price on it - like others have said if it takes 2-3 months or even 6 to sell it'll cost me £££, plus the hassle and ea fees. I'll give them a ring (I can't get there in person unfortunately), thanks all. Yes I'm going to need my big girl pants for this 😔

Fishing to try to make out the OP is some sort of property empire mogul.

She is asking one question about one situation.

Good outcome :) Tenants have been saving, as well as getting a small inheritance, and are going to explore options with the bank to get a mortgage. They said they want to buy the house. Thanks all :)

@newstart1234 great news, fingers crossed they get the mortgage and the sale goes through smoothly.

Good news that they want to buy. I’ve just agreed a sale of one of our rental properties to a tenant but it’s been a complete headache. They’ve started to do building work on the property that was not authorised by us prior to sale completion. Due to complete in next 3 weeks - nervous now!

I think you could reasonably offer them more than just the EA commission discount.

(a) you are likely to actually only get offers about 10% below your asking price. Whatever you valued it as will be inflated

(b) giving them a larger discount is really nust saying "let's pretend you bought it 5 years ago and sell it for the price it would have gone for back then. You don't exactly lose any money - not money you ever actually earned anyway. You're just sharing a proportion of the unearned appreciation in value with them.

I'm glad you offered them the choice. I work in lettings and a lot of tenants are offended when they have been given notice without the option to buy it first especially when they are happy and settled in their home. I hope it works out for you / them!

there was an article just today about how to sell to your tenants - see what you think.

www.theguardian.com/money/article/2024/jul/01/the-no-deposit-mortgage-that-lets-tenants-buy-the-home-they-live-in-with-a-gift-from-the-landlord