Advice needed! Landlord is selling...

[HowToBuy]

I'd love some advice ladies...

Was given notice this week that my landlord is selling up. Have been here 5 years, in the area for 12, it's 10mins from work and my teenage DC school, 5 mins from my parents and we're pretty happy here. Notice is 6 months.

It was my agent that gave me notice so have yet to speak directly to owner. I apparently have first refusal and should make an offer.

The rental market is dire where I am (I'm in Ireland)... literally nothing suitable for under €500 more than what I'm paying now. There are also zero houses to buy.

I think I have to try and buy this house. My plan was to emigrate when my DS went to college, but he has 3 years left so I need stability for him for at least 4 years.

My budget isn't huge, I can maybe get €240k maximum which is probably the lower end of what the property would go for. I think if it went to the market, it would be €250k - €275k.

My work contract expires in August so I have asked to fast track this with a raise by the end of this month. (Sickeningly I just had an incredible job offer I now need to turn down because I won't get a mortgage on probation).

I have an appointment with mortgage broker tomorrow.

How can I position myself best to buy this property? What can I highlight to reduce the price?

If it's a straight sale then we don't need a real estate agent so he saves that fee. Presumably straightforward with solicitors as well so he'll save there? I'm also in situ so he won't have any loss of rent, whereas it might take a while if it goes to market.

There has been zero maintenance done on the property, except by me, since I moved in. It's across from a, now very loud, business that has expanded majorly in the last 2 years so that would likely affect the price.

Do I need to get a structural survey before I make an offer? Should I have it valued myself?

I'm honestly clueless, please help!

@HowToBuy it seems a challenge to buy this property but also a good opportunity if you can manage it so Good Luck! Please let us know how you get on and any further questions we will do our best to help.

Why can't you negotiate a sale date for after your probation, upping your monthly rental.in the meantime ... so you can take the new job?
Alternatively just offer to up yoyr rent and review in 6 months.

I agree with this! Factoring in the notice he'd need to give you, and then the time to secure a sale, 3 months is nothing!

Also, I got a mortgage whilst on my probation period. It was no issue at all.

So apart from Social Housing LL you are not going (highly unlikely) to be outbid by a LL. I am not sure if a SHLL is excluded or would have to take the current ongoing loss of 6k pa. So how active are they in buying up housing in your area as they may bid over MV to gain housing stock?

The loud business is an advantage to your pricing.

TBH if you think your child will/may be irish based career wise I would look to buy and build up a deposit by renting out the room now. If its a tourist hotspot and poor rentals here will be people who need short term lets over the summer and you get on the market earlier than college LL who short let during the summer.

Long term if you move away you drop out of the Irish social services network and OAP care for non-citizens will be an issue as western birth rates continue to drop below the Employee replacement rate

As another option if other rentals aren’t really viable and you’re looking to buy… is there anything else on the market that might suit you better/be more affordable to buy. Rather than just buying this place by default almost.

@ByQuaintAzureWasp @bookworm8500 unfortunately the probation period with this role was 6 months. It's not just the probation period that would be the issue, that base pay would be lower than what I'm currently earning, it would likely take me 3 x sales quarters to start earning the max commission I expect from the role. But, the good news is they completely understand my predicament and are happy to consider me again in 6 months time.

There are really only 1 or 2 in the area that would suit and are within budget. I will definitely arrange viewings to go and see them.

There is also another property in my development going up for sale, agent rang this morning to tell me the tenant there won't be able to get a mortgage, the owner there is looking for €200k. Current tenant is out in April so will be able to view that property then.

It's only a very small 2 bed though, my own home is a normal sized 3 bed with open plan kitchen/living. I've also been told this property 'needs work'... will see just how much at the start of April.

@AnSolas so you be actually started looking at a SH scheme called the Cost Rental Tenant in Situ Scheme where the council will actually buy the house and then rent it back to you. I've been told that it's very rare in my area but it's worth a try. I've also never been on the SH list as I earn over the threshold.

But again, that's just handing money to someone else when the rent could go to something my son would benefit from. And I'd also not be able to move in a few years without losing the house.

But beggars can't be choosers! I'm looking into all options.

Not sure how quick I could get the extra room ready for short term let. It's currently an office/storage/music room but has a bed and is lovely and bright with stunning views. I'll start tidying this up over the weekend and see if my agent would mind me doing some AirBnB.

There's no real prospects for me here in this country anymore. I have felt ground down for years, can never get a leg up and taxed through the teeth for absolutely no return. I hate what the country I used to love has become. I'm not concerned about dropping out of the social services scheme. In terms of OAP care, my mother works in this area and Ireland is really lax with this. Many retire to this country from elsewhere just to avail of the free healthcare.

It won't save anything in solicitor fees - it's the same if you were selling to anyone.
Unless you adore the house do you really want it? Saves you moving I guess. Bit look around too.
I've lived in properties for two years and sold, always making a profit (but rising market helps).
Don't do a survey without an agreed offer. You can always renegotiate if something is discovered.

Okay, have a ballpark price from the owner via the agent.

He wants somewhere in the region of €225k - €250k

He's basing this apparently on the most recent sale in my development (old converted country estate development btw).

The last house that sold was a 2 bedroom and went for €225k. I actually went to view it but it was ultimately a bit small and I wasn't under pressure to buy at the time.

Glad I went to see it now as I know the work that was done to it. Internal insulation throughout, new triple glazed windows throughout, brand new pellet fuel heating system throughout, new small wet room downstairs installed, new kitchen installed and the back area was much nicer than mine with big storage shed included.

Mine has never had any work done ever, except an upgrade to newer electric heating. They were originally built as holiday lets so the insulation is crap and it's pine everywhere including kitchen.

Is it unreasonable to think that, while I have another bedroom and en-suite bathroom, €225k might be a good offer?

@mondaytosunday thanks for the advice on the survey, that makes sense. Get him to accept an offer and then potentially use survey after to renegotiate

Do not go to SHLL unless you are not able to buy you do not want them bidding against you. Some are willing to pay over the MV.

As for OAP care if you an expat you are depending on a foreign system to provide directly or via indirectly the irish tax pot. And Ireland is already going down the PPS card as a national ID route for services as returning Irish were not getting PRSI funded care nor unemployment. OAP citizens have rights even if they did not pay into the social fund. But that off topic🤷‍♀️

Are you a first time buyer?

Yes, but as my home is not a new build I don't qualify. However, there is the First Home Scheme available which can provide bridging finance for equity in the property. I've started looking into this but if I can avoid I will as it will presumably slow down the sale and make things seem more complicated to my LL?

Yes offer 225k and see if they accept - it is much easier to sell to you and saves a lot of hassle for them. You could then always increase to 230k but highlight how much of a stretch it is for you but that you desperately want to buy it.

Ah, I see. Yes that's not ideal.

However your update about the valuation sounds fab. I'm absolutely sure the landlord would bite your hand off to sell to you.

Can I also say, what a fab woman your son has as his mother. Inspirational to be a single mum, working ao hard and doing so well 👏 I've been thete myself and it's not easy x

Landlord here you’re the dream purchaser. You hold all the cards it took me 12 months to sell a house last year it’s sooooo slow so reframe what you’re thinking. You are the best person to buy and this is your offer go in at £220 your landlord won’t need to decorate do anything out wait for you to leave etc etc you are the dream Good luck !

@bookworm8500 I had to take myself away from the desk at work as your message made me tear up. Thank you so so much for the kind words. You're so right, it's definitely not easy, and it annoys me so much that you can work and save so hard for such little return in this country. But we will get there, I just need to get my ducks in a row as they say and keep the head down for the next few months. And hanks again x

@Loloj @Parsley1234 I'm really glad to hear that you guys don't think an offer of €225k is unreasonable, that's actually really easing my fears a bit and gives me some room with finance.

I don't want to annoy him by going in with a low offer, but equally, it would make his life a lot easier I'm sure and the sale would be quick as I'm not in a chain etc.

I'll have a chat with the broker today and probably float an offer with him next week all going well.

You won’t annoy him he will be over the moon £230k 😜❤️

£220k 😜❤️

Aaah, good luck. I've been single for most of my adult life and have, over that time, bought four different houses with mortgages. You can do this!

Don't think that's possible

Yes you can, so for example, if you have £40k deposit, you can put down £30k instead and leave the remaining £10k to cover moving costs inc stamp duty. They won’t lend more than the property’s worth as it will instantly put you in negative equity - but you can put less down as a deposit.

Talk it through with the mortgage broker (get a free one who gets paid by the mortgage providers), they’ll be able to calculate it all for you.

Not from my landlord, but i just put in an offer on a flat. It was £23k under the asking price and my offer was accepted due to my position and being able to move quickly.

I never in a million years thought they would accept my offer but they did!
Don't give up hope, you never know what might happen. I wish you all the best xx