Opportunity For Tenants Buying From Landlords In Liverpool
Open & Honest Mortgage Advice in Liverpool
We regularly receive questions from private tenants buying from landlords, often due to some landlords offering first refusal (the opportunity to buy before it hits the open market) to existing tenants. Even if you don’t have this privilege, it might still be an option and it is always worth asking your landlord if they would be willing to offer this to you in the event of a sale.
The government decided to crack down on tax relief previously available on Buy to Let Mortgages. The changes were brought in over a 4-year period and it is only now this has taken effect that they are starting to see the impact of these changes as they receive their tax bills.
Property has been a solid means of income and a worthy investment for landlords over the years. Some landlords opted to ride out the tax changes because they are in it for the long haul, with a lengthy career as a landlord in mind.
However, some landlords were tempted to sell up and move on. There are lots of advantages on their part to selling you the property you currently reside in, which is why many of them took that route. Here are some of those:
Advantages to tenants buying from landlords in Liverpool
- Avoiding estate agents fees – the national average estate agents fee is 1.8% + vat so just by that factor alone, they’re saving a lot of money.
- Loss of rent – it’s actually quite difficult to sell a house with a tenant already living inside. This is because tenants won’t typically put themselves out to do viewings on behalf of their landlord. Because of this, there is a chance that they will just move out, creating a “rental void” where no income is being received. Selling to the tenant guarantees rent will keep coming in right up until completion.
- No refurb costs – if the tenant moves out then the chances are the house will need at least a lick of paint, if not more significant refurbishment to get it ready to put up on the open market. Selling to a tenant means no extra work needs to go into it, as they know the tenant already likes it that way.
There are also advantages for the sitting tenants buying from Landlords in these kind of circumstances. Some are these are:
- You are already very familiar with the property as it is your home, and you are aware of any possible improvements that need work.
- There is no property chain involved, so the sale is less likely to fall through.
- The landlord may offer you a slight discount from the open market value because of the costs they are avoiding.
Experienced Mortgage Advisor in Liverpool