We often hear from customers who get in touch that they are looking for Specialist Mortgage Advice in Birmingham. A large portion of these is currently renting from a landlord who wants to sell them their property.
From the perspective of a landlord, selling a property to their current tenant can be more manageable. They may give the tenant the possibility to buy the property before it goes on the open market.
Because of government tax relief clamps, many current landlords are now paying more tax than they would have done in years gone past, leading some to call it quits on their housing ventures and seek another investment in another market.
Investors who are serious about their job as a landlord and keeping the property market going tend to keep going through these legislative changes. When it comes to being a buy-to-let landlord, their mindset is that their property is a long-term investment. On the flip side, amateur landlords are more likely in it for a “quick buck” and will sell if things don’t quite go their way.
🏠 It saves them from the costs of estate agent commission.
🏠 Rent will continue to come in until the purchase finalised.
🏠 They could save money on the costs of refurbishment.
It’s not just landlords, though – There are also advantages to the sitting tenant who is considering buying from the landlord:
🏠 You have already lived on the property, so you know what it is like!
🏠 There is no waiting for the previous owner to find a place to live, as you already live there.
🏠 Due to the landlord not having to put as much money aside to sell the home, they can often discount it to you for a lower price!
If the price you both agree on is below the property’s value, a lender may accept putting the properties equity towards your deposit. If there is enough equity in there, you may not require a deposit at all!