If you feel totally at home in your rental property, you may daydream about buying it from your landlord.
So, what issues come into play when you want to buy the property that you’re renting? Let’s take a look.
Be realistic
While it’s not unheard of for a tenant to buy their rental, it is uncommon.
One reason for this is timing: the tenant needs to be in a financial position to buy the property at the same point as the landlord is looking to sell.
Understand the commitment involved
There are benefits to owning your own property, but it is a long-term commitment.
One advantage of renting is that you’re not tied into a mortgage for decades. It’s also easier to move or travel if your personal or professional circumstances change.
Speak to your landlord
The decision to sell is entirely within the landlord’s discretion. The landlord may have a long-term buy-to-let strategy and want to keep the property to fund their retirement or pass on to family.
But there’s no harm in raising the issue to gauge the landlord’s view.
Do your research
Even if you think your rental is the place where you want to put down roots, it’s still useful to research the local market.
That way, you can get a clear idea of what properties in the area are selling for and make an offer in line with the current economic climate.
Costs of owning a property
It’s important to do your homework before getting serious about buying a property.
You’ll need to stump up cash for the deposit and stamp duty and be able to stay on top of monthly mortgage repayments.
And don’t overlook the costs of maintenance and repairs (which you’ve never had to consider as a tenant before).
Agreeing on a price
Even if your landlord is open to selling, that doesn’t mean the deal is done: you still need to agree on a price.
Your landlord will most likely want to have the property valued by a few estate agents to ensure they achieve market value.
Property negotiations can involve quite a bit of back-and-forth between the buyer and seller, so this process can take time.
From all of us here at Newton Fallowell Melton Mowbray, thanks for reading.
