Tenants buying from landlords in Sheffield
Buy-to-Let Mortgage Advice in Sheffield
As a mortgage broker in Sheffield, we find that we get an ever-increasing amount of enquiries from tenants looking to buy from their landlords. This could be due to the fact that landlords are offering their tenants ‘first refusal’, which provides tenants a chance to buy the house before it goes onto the open market.
If you are wondering if your landlord may offer you the same chance to buy your rented home, it’s worth asking the question as they may be very willing to do so.
Why are so many Landlord selling their property to tenants?
Landlords selling their property to tenants has become increasingly popular over the years because the government cracked down on tax relief previously available on buy to let and some of those changes were introduced over a 4 year period. Property has always been viewed as a solid investment, so many decided to get through the tax changes as they have looked at their properties as a long-term investment.
Maintaining their investment over time is something landlords, old and new, find difficult. As a result, they look to sell up and leave the property market. In the circumstance where your landlord is looking to sell, then there is a possibility that they would sell to you as the current tenant because they will be aware of the number of advantages by doing this instead of the market. Some of these include:
- Avoiding estate agents fees – Because they are going directly to you and not the open housing market, they are cutting the costs by avoiding any estate agent fees. It makes the landlord’s job easier and cheaper through having no advertising costs and no costs for undertaking viewings.
- Loss of rent – A tenant going out their way to do property viewing is very unlikely, therefore, arranging this with a sitting tenant can become a problem for the landlord. Alternatively, some tenants decide to move out which creates a ‘rental void’ where there are no payments until someone else moves in. Therefore, selling to the tenant benefits the landlord as they keep a steady income all through until completion.
- No refurb costs –The landlord will have to make the house look presentable should the tenant decide to leave. Things like a fresh coat of paint, minor repairs, etc. can build up costs. Whereas selling the property to their tenant cuts this cost as they know the tenant is already happy with the house they live in and are willing to buy it.
The advantages for the tenant buying the property they rent
Tenants aren’t the only ones who benefit from this, tenants do too. Advantages include:
- Property Knowledge – You will have a broader understanding of the property because you have already lived in it. As well as this, you will know the condition of the house and if there need to be any improvements.
- Quicker Process – There is no need to sort out a moving date, pack up belongings, or anything like that because you already live there.
- No Chains – Because you already live there, there are no property chains to worry about. If you were in a property chain, you would have to wait for someone else to move before you can, but in this case, you are not waiting for anyone.
- Money Saved – Sometimes, landlords may offer you some discount off the asking price. This isn’t guaranteed but, you may find yourself saving money if this is the case. From a landlord’s point of view, selling to you benefits them by cutting additional costs in an open market.
If you are in need of some help with your mortgage after agreeing with your landlord to buy the property, please get in touch with your buy to let mortgage broker in Sheffield today.