Buying as a Sitting Tenant in Coventry

Sitting tenant mortgage advice in Coventry

Now and again, we receive calls from tenants when the landlord has notified them and is considering selling their properties. 

That said, it is much easier for landlords to sell to existing tenants than the open market. Tenants sometimes have the opportunity of deciding whether to accept or reject it before the landlord offers it to others.

Why is my landlord selling up?

The Government has re-evaluated tax reliefs previously afforded to landlords, leading many landlords to pay more tax than before, hence selling their properties. A prevailing situation for landlords. 

On the other hand, more severe investors often keep their properties as they view it as a long-term arrangement and a sound investment despite legislative changes.

Why is it better for landlords to sell to sitting tenants?

There are various reasons why a landlord might choose to sell their property to you. These include and are not limited to:

1. They avoid paying commission with estate agents.
2. It avoids ‘loss of rent’ due to not having tenants in the residence until the sale goes through.
3. No refurb costs: If a tenant moves out, the property will have to be prepared for sale. With potential expenses needed to redecoration, e.g. new flooring.

Advantages for you

Not only are there advantages to landlords, but there are potential advantages to sitting tenants who are considering buying the property as a first time buyer in Coventry:

1. You know the property inside out. No nasty surprises for you! If there are any faults, you’ll already be aware of them.
2. You won’t be caught up in a chain. You aren’t waiting for the property owner you’re after to finish their process, meaning you can do a deal faster.
3. Discounted price when purchasing. Given all the advantages listed above, it’s normal for a landlord to sell to a sitting tenant at a discounted price. More commonly known as a ‘sale undervalue’.

Some lenders will allow any discount the landlord offers you as part/all of your deposit if the agreed price is well below the open market value. It may even be possible for a tenant not to have to put down any deposit at all.

Buy to Let Mortgage Advice in Coventry