You might find yourself in a similar situation after falling in love with the place you currently rent, so it’s helpful to know what your options might be and how you can get the ball rolling.
We have advisors on our online chat who can answer any questions that crop up while you’re reading but you can also call 02380 235555 if you’d prefer.
Can private rental tenants ask to buy the house from their landlord?
Absolutely! If you’re in a position to buy property and you’re eager to stay in your current home, buying from your landlord can be convenient and may also save you money given that you won’t have removal fees and may also be able to complete the sale without an estate agent.
Your landlord has no legal obligation to agree to sell to you, after all, it’s their house. However, your enquiry about buying the house might make them consider, especially if you’re able to pay a fair asking price.
What are the advantages of buying your rental property?
No competition, just you and the seller
Can be completed with or without an estate agent
You may have already customised your rental home to your liking
You avoid having to move all of your stuff to another property
May be able to negotiate the asking price if you’ve been a long-term tenant
Prepping and planning: The steps to take if you’re serious about buying your rental
Ask your landlord if they’re interested in selling
It can be a good idea to put the feelers out there, so to speak, before you start looking for loans and eyeing up the artech spirals on the walls that are screaming out for a replaster.
Text or email your landlord to ask about their plans for the property and whether they would consider selling. It might be something they haven’t considered, so don’t panic when a quick fire response isn’t sent immediately.
Find out how much the house is worth
There are a couple of ways you could do this. The first is to search your address using a property portal like Zoopla or Rightmove because you may be able to locate the price history of the home. It can also be helpful to compare the prices of similar properties in the same area, looking at their price histories if possible too.
The second option would be to have an independent valuation done, which would usually involve the assistance of an estate agent. It can be helpful to ask more than one estate agent to provide a valuation, in order to get a realistic figure for what it should sell for, not the price they would advertise it for.
Find a good broker
Unless you’re in the fortunate position of being a cash buyer, you’ll likely need a mortgage to finance the property purchase.
If you’ve never had a mortgage before, the sheer number of products and rates can be a little overwhelming, especially if you’re not quite sure about what type of mortgage you need.
A mortgage broker with access to a range of UK and overseas lenders can compare the most suitable options on your behalf and will only recommend relevant lenders that are more likely to accept you. This can help you avoid possible credit rejections on your file and may also save you time and money.
A broker can also calculate your affordability and find out how much you could borrow. This information can help you to move forward with the process of asking to buy your rental home from your landlord, as you’ll have a better idea of how much you can offer.
Formally contact your landlord
Bring an offer in writing to your landlord and present to them a fair market price for what you think the home is worth. It’s important to document your correspondences in writing so that both parties have a paper trail and are clear on the terms of the agreement, if they decide to proceed.
Prepare a plan B
If you are in a position to buy, start looking around at other available properties you’re interested in as a back-up. It’s always worth comparing what you could get elsewhere as you might be able to find a better deal.