Buying a house as a sitting Tennant

mattyfez · 2 Sep 2013 at 19:25

Hi just after some advice about buying my landlords house.

I've been in it 5 years and the LL has said a few times he's happy for me to continue to rent, the and if I move out it will go straight on the market.
Has also said I can get first refusal if I want to buy it.

It's basically a bottom of the market 2 bed end terrace, guesstimate the about 80k.

Im a first time buyer and happy with the place, been there 5 years obviously subject to survey etc.

I'm having a lunch meeting with them soon to talk about things, he mentioned paying my deposit (not sure how that works) and i can probably raise 5-10k from family boost the deposit, I have no savings but a good credit card report from experian and equifax, and could easily pay, as it may well work out equal or less than my rent.

Any advice? Presumably both parties will get a couple of valuations and come to a deal based on that before I apply for a mortgage? Are valuations free?

Thanks

mattyfez · 2 Sep 2013 at 20:11

I've got 3 credit cards, owe about 3k on one card(balance transfer, the other two I don't really use and don't have any debt on them, maybe about £60) and have about 9k total credit (including what I owe) if that makes any difference?

mattyfez · 2 Sep 2013 at 20:17

maccapacca said:
Borrow the lot then.

70k is what £1125 a month on a repayment mortgage 6 yrs the lot on interest only credit cards would be £1000 a month and you save 10k.

Seems risky, id rather borrow over a longer period than 6 years I think?

mattyfez · 2 Sep 2013 at 20:30

maccapacca said:
Also you're not a sitting tenant

Don't think you have any leverage other than the landlord losing a month or two's rent and him paying 1.5% to an estate agent.

Ahh, I used the wrong phrase, what I meant was I'm a long term private tenant.

mattyfez · 3 Sep 2013 at 15:07

Raising a deposit isn't really the issue, and I don't intend to raise it from credit cards lol. Not even sure a Mortgage co would accept a credit card as deposit. Seeing as most deposits have to be verified you have the cash, Im sure thy would run a mile during the approval process if you said you were going to raise the deposit by maxing out a bunch of credit cards..

Anyway I'm looking at more a 15-20 year mortgage, my question was more around what the landlord meant by paying the deposit? I will have some extra money from family also which I can add to the down payment.
Also presumably both parties would get their own valuations done and then haggle on the final amount?
Should be in a strong position as I know the house very well and I've got no chain/first time buyer and I already live there so will be a stress free sale from the house owners perspective, so that's gotta be worth some bargaining power?

mattyfez · 3 Sep 2013 at 18:49

maccapacca said:
I reckon you may get a shock at what he thinks it's worth.

Well that's what I was asking about valuations and negotiations , I've checked up on the history of house sales on the street on zoopla and also Thier estimate of current value is pretty much in line with what I was thinking.

Also had a good look on right move at similar local property, so i know asking prices so it's down to negotiating down due the convinent sale and some issues I know the property has, obviously with any further issues a valuation might pick up.

mattyfez · 3 Sep 2013 at 21:18

Thanks, that's quite reassuring to know, I owe about 3k on credit cards and if you catch me at the wrong time of month, about £800 on current account overdraft, I'm quite wary about applying for a mortgage due to this. My credit reports with Equifax and Experian seem to be in good shape though, lots of good history bar one or two '1 month late' payments.

I'm not sure how much mortgage companies look at current accounts, one of my credit cards recently said I can transfer @0% my overdraft for 12 months but I'm concerned about falling into the credit card trap.