Changes to tax breaks and proposed legislation related to the energy efficiency of buy-to-let properties are leading some landlords to consider selling their buy-to-lets. If you currently rent, this could provide an opportunity to purchase the home you already live in.
According to the English Private Landlord Survey, 10% of landlords plan to sell their property once the current tenancy ends. A similar number aren’t yet sure if they will relet or sell their buy-to-let home.
Around 12% of landlords plan to decrease the number of properties they own – this represents around a fifth of tenancies.
If you’re ready to purchase a home, approaching your landlord if you’d like to stay where you are could work in your favour. If it’s not something they’re already thinking about, it might spur them to.
Whether you approach your landlord or they’ve decided to sell, keep in mind they have no obligation to sell to you. It can make sense from the landlord’s point of view and you may be in a strong position, but they may also consider other offers.
The benefits of buying from your landlord
You don’t have to move
The key benefit to purchasing a home that you already rent is that you don’t have to move. This can save you money and reduce stress.
You can do away with moving costs and there won’t be an overlap where you are paying both rent and a mortgage.
In addition, not having to pack items can mean the process is much smoother. You may also have made changes to the property, from decorating to tending to the garden, that you couldn’t take with you if you moved.
You already know the local area
When buying a home, some people will worry about whether the neighbourhood is right for them. Does it have the facilities you need or the sense of community you want? What are the neighbours like?
The good news is that you would already know the neighbourhood and your neighbours well. It can reduce some of the anxiety around moving, especially if it means you can remain close to family and friends and that children don’t need to change school.
You already know the general condition of the house
Undoubtedly there are things you would like to change in your home to make it suit your needs. However, as you’ve already been living in the property, you’ll have a better idea of the general condition of it and things that may need your attention.
That doesn’t mean you should forgo a professional survey when buying a home from your landlord. A survey can raise potential issues you may have overlooked that could be costly, such as a damaged roof.
You may be able to negotiate a better deal
Selling to a tenant can reduce costs and stress for a landlord. You may have established a positive relationship with them too. As a result, you may be in a position to negotiate a better deal and make your budget stretch further.
3 things to do if you’re thinking about buying from your landlord
1. Look at the market and other homes
While you may love your current home, don’t forgo looking at other properties.
You may find a home that better suits your needs, and it can give you a useful indicator of price. Viewing other properties can mean you’re more confident putting in an offer.
2. Check the costs of owning a home
In some cases, paying a mortgage can be more affordable than paying rent and so your regular outgoings could fall. This will depend on several factors, from the value of the property to the interest rate you’re offered.
In addition to your mortgage repayments, you should also consider the other costs of owning a home, such as maintenance costs.
Understanding your future expenses is vital before you move forward with buying a home. Having a clear budget can help ensure you’ll be able to meet the financial commitment you’re making.
3. Make sure you’re ready to buy
If you’re thinking about buying your home after your landlord has informed you of their intention to sell, ask yourself if you’re ready to buy. Understandably, you may consider buying just to stay in the home you’ve built, but you should make sure it fits into your plans too.
Are you ready to talk about mortgages?
We’re here to help you understand your mortgage options, from how much you could realistically borrow to how interest rates would affect your mortgage repayments. Please contact us if you’d like our support when purchasing a home.
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.