Buying as a Sitting Tenant in Nottingham

Sitting tenant Mortgage Advice in Nottingham

Tenants often phone us regarding Specialist Mortgage Advice in Nottingham because their landlords are selling their investment property. This is where we are able to offer security because we know it is easier for a Landlord to reach out to a tenant and put forward the option to buy rather than to go straight to the open market.

Why is my landlord selling their investment property?

A while back the Government clamped down on some tax reliefs which helped Landlord expenses. This means that more tax is now being paid out leading to landlords thinking ahead and turning over their investments.

Although, whether the property is sold depends entirely on the landlords. Some amateur landlords will choose the viable option to sell straight away, but more serious landlords will see it as a long-term arrangement and will roll with the legislative changes put in place because it is seen as an investment.

Is it beneficial for landlords to sell to sitting tenants?

There are various beneficial reasons as to why a Landlord might prefer to sell to a current tenant.

1. Money is saved by your landlord because of no third-party involvement such as Estate Agents.
2. A property may take some time to sell, during which time your landlord could have had the possibility of still gaining money if they still had a tenant in. If you’re still residing in the property, they’re still gaining an income.
3. If you move out then the Landlord will have to refurbish and make the property ready for sale to attract new potential buyers.

As well as there being positive reasons for the Landlord, there are also positive reasons for the tenant to considering buying:

1. You know the property, so you already have it to fit your taste.
2.  You will have extra security by already being in the property and the whole process can be finalised more quickly.

All the advantages above are also reasons which would go towards the possibility of the landlord offering you a reasonable discounted price – this is known as a ‘Sale Under Value’.

Some Lenders will allow any discount the Landlord is offering to you as part/all of your deposit. If the agreed price is well below the open market value it may even lead to a tenant saving on putting down a deposit at all meaning the tenant is even better off. For more information get in touch for Specialist Mortgage Advice in Nottingham.

Specialist Mortgage Advice in Nottingham