We often receive calls from tenants informing us that their landlords are looking to put their property on the market, however, would like to offer the tenant the opportunity to buy the property first.
If the tenant is eligible for a mortgage and is in a position to purchase the property, this is usually the best outcome for both landlord and tenant. As if the tenant works close by or has children in the local school, moving would be an upheaval, to say the least. From the landlord’s perspective, it will save them time and money with selling fees.
Some tax reliefs were previously set in place by the government which helped landlords but due to changing times, these have been rolled back by the government. It is because of this that landlords are having to pay more tax meaning they are having no other option but to offload their investment property.
Whether the property is sold is to the landlords’ discretion. Some, such as serious investors, see it as a long-term arrangement seeing it as a sound investment from which they could benefit, whilst on the other hand, amateur Landlords will normally choose to sell.
There are many reasons why landlords would prefer to sell their property to the tenant rather than list it on the open market.
But there are advantages on both sides, such as to the tenant who is considering buying:
The advantages above means you’re able to obtain the property at a discounted purchase price. This is a popular route to sell for landlords and can sometimes be referred to as ‘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 turns out to be well below the open market value it may even lead to the providential situation of tenants not having to put down any deposit at all.
We come across this enquiry quite frequently. In this scenario, you are more than likely a first-time buyer in Grimsby and have lots of questions to ask. Our Mortgage Advisors really enjoy helping our customers every step of the way and putting your mind at ease throughout the whole process. Please contact us to discuss your mortgage options, we’d love to help you achieve your mortgage goals.