Buying as a Sitting Tenant in Leicester

Buying as a Sitting Tenant | Tenants buying from landlords

Tenants often call us looking for advice because their landlords are looking to sell their property.

This is where we can offer advice. We know that it is easier for a Landlord to look to sell the property to a sitting tenant. The landlord knows this too.

It is easier selling to the tenant rather than going straight to the open market.

You are probably among the many who have aspirations to own your own home.  Rent is often seen as ‘dead’ money, (although it is often dependant on your circumstances, timing, and the tie in with having a mortgage).

Let’s take a look at buying from your landlord.

Why is my Landlord Selling their investment property?

Some time ago the Government clamped down on some tax reliefs which helped Landlord expenses.

This means that more tax is now being paid out leading to landlords thinking ahead and turning over their investments.

However, whether the property is sold depends entirely on the landlord. Some landlords may choose the viable option to sell straight away.

More serious landlords will view the long-term and will run with the legislative changes.  

Is it beneficial for Landlords to sell to Sitting Tenants?

There are various beneficial reasons as to why a Landlord might prefer to sell to a current tenant, and this gives you an advantage;

1. Money is saved by your landlord as there will be no third-party involvement,  such as Estate Agents.
2. A property may take some time to sell if you remain your landlord could have had the additional rental income. 
3. However, if you move out, they will lose the rental income as well as,
4. The Landlord will have to refurbish and make the property ready for sale to attract new potential buyers.

As well as there being positive reasons for the Landlord, there are also positive reasons for you, as the tenant to considering buying:

1. You know the property, so you already have it to fit your taste.
2. You will also be familiar with the condition of the property also.
3.  You will have extra security by already being in the property and the whole process can be finalized more quickly.

All the advantages above are also reasons which would go towards the possibility of the landlord offering you a reasonable discounted price, this is known as a ‘Sale Under Value’.

Some Lenders will allow any discount the Landlord is offering to you as part/all of your deposit.

If the agreed price is well below the open market value it may even lead to a tenant saving on putting down a deposit at all, meaning the tenant is an even greater position to buy the house.

Whether your a First Time Buyer or Moving Home in Leicester, get in touch with one of our Mortgage Advisors in Leicester today.