Tenants buying from landlords in Sheffield
Buy-to-Let Mortgage Advice in Sheffield
The amount of enquiries we get from tenants looking to buy from their landlords is increasing. We find that many landlords are offering their tenants “first refusal”, that is a chance before it goes onto the open market to buy the home they are renting.
For lots of renters, you may wonder if your landlord offer you the same chance to buy your rented home. It is a question that is definitely worth asking, as they may very well be willing to do so.
Why are so many Landlord selling their property to tenants?
The reason this type of circumstance has increased over the years, is because the government have cracked down on tax relief previously available on Buy-to-Let in Sheffield and some of those changes were “phased in” over a 4 year period. Property has always been viewed as a sound investment and as such, many decided to ride out the tax changes as they have looked at their properties as a long term investment.
Others who were landlords before and even those who take up being a landlord now, find it difficult to maintain their investment over time. As such, they may look to sell up and leave the property market. Should your landlord be tempted to sell then they will understand the advantages of selling to you as the sitting tenant rather than put it on the market. Some of these include:
- Avoiding estate agents fees – By going directly with you and not to the open housing market, they avoid having to pay an Estate Agent to do the bulk of the work for them. No costs for advertising the property, no costs for undertaking viewings. It makes the landlords job a whole lot easier, and cheaper.
- Loss of rent – A tenant will likely not go out of their way to do property viewings for the landlord, so trying to arrange this with a sitting tenant can cause problems for the landlord. Instead what happens is some tenants may choose to move out, thus creating a “rental void” where there is no income until someone else moves in. By selling to the tenant, the landlord keeps a steady income all the way through until completion.
- No refurb costs – If the tenant does opt to leave, the landlord will have to make the house presentable again. Fresh coat of paint, minor repairs and so on. If they sell to their tenant instead, they know that they are already happy with the house they live in and are willing to buy it as is.
The advantages for the tenant buying the property they rent
Of course there are benefits to the tenant as well, not just the landlord. These can include:
- Property Knowledge – You likely know the house better than anyone, as you’re around it every day. As such, you will probably understand and know the condition of the house and what, if any, improvements may need some work.
- Quicker Process – You already live there, you don’t need to worry about arranging a moving date or anything like that.
- No Chains – Once again, you already live there. This means you’re not waiting for someone else to move before you can, and nobody is waiting for you either. No property chains!
- Money Saved – Although no guarantee, you could actually find yourself saving money on the asking price, as the landlord may offer you some discount. This again goes back to their own benefits, as selling to the tenant will avoid the additional costs in an open market.
If you have agreed with your landlord to buy the property you’re renting and need some help with your mortgage, please feel free to Get in Touch with your Buy-to-Let Mortgage Broker in Sheffield today.