Buying as a Sitting Tenant in Manchester

Buy to Let Mortgage Advice in Manchester

We often hear from customers who get in touch that they are looking for Specialist Mortgage Advice in Manchester. A large portion of these are currently renting from a landlord that is wanting to sell them their property. From the perspective of a landlord, selling a property to their current tenant can actually be easier. As such they may give the tenant the possibility to buy the property before it goes on the open market.

Mortgage Advice in Manchester for a landlord

Reasons a landlord may be selling

Because of government tax relief clamps, a lot of current landlords are now paying more tax than they would have done in years gone past, leading some to call it quits on their housing ventures and go seek another investment in another market.

Investors that are really serious about their job as a landlord and keeping the property market going, tend to keep on going through these legislative changes. Their mindset when it comes to being a buy-to-let landlord, is that their property is a long-term investment. On the flip side, amateur landlords are more likely in it for a “quick buck” and will sell if things don’t quite go their way.

The benefits of selling to a tenant

1. It saves them from the costs of estate agent commission.
2. Rent will continue to come in until the purchase is finalised.
3. They could save money on the costs of refurbishment.

Mortgage Advice in Manchester for a tenant

The benefits of buying from a landlord

It’s not just landlords though – There are also advantages to the sitting tenant who is considering buying from the landlord:

1. You have already lived in the property, so you know what it is like!
2. There is no waiting for the previous owner to find a place to live, as you already live there.
3. Due to the landlord not having to put as much money aside to sell the home, they can often discount it to you for a lower price!

If price you both agree on is below the value of the property, a lender may accept putting the properties equity towards your deposit. If there is enough equity in there, you may not actually require a deposit at all!