Tenants often phone us regarding Specialist Mortgage Advice in Nottingham because their landlords are selling their investment property. This is where we are able to offer security because we know it is easier for a Landlord to reach out to a tenant and put forward the option to buy rather than to go straight to the open market.
A while back the Government clamped down on some tax reliefs which helped Landlord expenses. This means that more tax is now being paid out leading to landlords thinking ahead and turning over their investments.
Although, whether the property is sold depends entirely on the landlords. Some amateur landlords will choose the viable option to sell straight away, but more serious landlords will see it as a long-term arrangement and will roll with the legislative changes put in place because it is seen as an investment.
There are various beneficial reasons as to why a Landlord might prefer to sell to a current tenant.
As well as there being positive reasons for the Landlord, there are also positive reasons for the tenant to considering buying:
All the advantages above are also reasons which would go towards the possibility of the landlord offering you a reasonable discounted price – this is known as a ‘Sale Under Value’.
Some Lenders will allow any discount the Landlord is offering to you as part/all of your deposit. If the agreed price is well below the open market value it may even lead to a tenant saving on putting down a deposit at all meaning the tenant is even better off. For more information get in touch for Specialist Mortgage Advice in Nottingham.