We are discussing the following offer with the agent for a house in which we are interested. The asking price is €275,000 with no current offers. It had gone sale agreed earlier in the year but the prospective purchasers were unable to obtain finance.
What we are discussing doing is offering a 'let-to-buy' option to this vendor of a 25 month lease at €1000 a month(slightly below market rate) with this money going towards a pre-agreed purchase price at the end of the lease term (say for arguements sake the asking price of €275,000).
We will also undertake some upgrade works to internal painting & redecorating, bathroom upgrade etc at our own cost. The house is in considerable need of this and we have family members in the trade who would be able to undertake these things very cheaply for us.
At the end of the 25 month lease we want to be able to take up the purchase at that time or walk away;
If we choose the latter the vendor naturally keeps the €25,000 in rent accumulated in that period and has a considerably upgraded house to either put back on the market on rent on to someone else. The house had been rented for many years prior and the vendor is simply retired and moving on from the the hassle of being a landlord.
If the former then the vendor has the sale price already agreed some two years earlier with us and we complete the sale less the €25,000 already paid, i.e. we complete at a price of €250,000.
We are currently renting and have approx €160,000 in savings via an inheritance. We have one income of €28,000(my partners) but no other debts. However my own credit report is blemished due to my business going under approx 4 years ago. Everything in that regard was settled at the time but naturally remains on my icb report and I am not currently employed. I am back in college with another two years remaining to completion of my degree.
From our perspective it would actually reduce our immediate monthly outgoings as we are already paying a similar amount in rent but it is in a location much further away from work and college than this house (thus reducing commute costs considerably both time and money). It would also allow me to finish my degree, assess my employment prospects at that point and allow time to repair my icb report. The property is one in which we would be interested in settling long-term.
I'm very interested in opinions on this in particular how this would be approached form a legal perspective (i.e. rather than legal advice per se more if this approach is possible). My main concern is ensuring that the agreement is binding on both sides. Thanks in advance to all for reading.
What we are discussing doing is offering a 'let-to-buy' option to this vendor of a 25 month lease at €1000 a month(slightly below market rate) with this money going towards a pre-agreed purchase price at the end of the lease term (say for arguements sake the asking price of €275,000).
We will also undertake some upgrade works to internal painting & redecorating, bathroom upgrade etc at our own cost. The house is in considerable need of this and we have family members in the trade who would be able to undertake these things very cheaply for us.
At the end of the 25 month lease we want to be able to take up the purchase at that time or walk away;
If we choose the latter the vendor naturally keeps the €25,000 in rent accumulated in that period and has a considerably upgraded house to either put back on the market on rent on to someone else. The house had been rented for many years prior and the vendor is simply retired and moving on from the the hassle of being a landlord.
If the former then the vendor has the sale price already agreed some two years earlier with us and we complete the sale less the €25,000 already paid, i.e. we complete at a price of €250,000.
We are currently renting and have approx €160,000 in savings via an inheritance. We have one income of €28,000(my partners) but no other debts. However my own credit report is blemished due to my business going under approx 4 years ago. Everything in that regard was settled at the time but naturally remains on my icb report and I am not currently employed. I am back in college with another two years remaining to completion of my degree.
From our perspective it would actually reduce our immediate monthly outgoings as we are already paying a similar amount in rent but it is in a location much further away from work and college than this house (thus reducing commute costs considerably both time and money). It would also allow me to finish my degree, assess my employment prospects at that point and allow time to repair my icb report. The property is one in which we would be interested in settling long-term.
I'm very interested in opinions on this in particular how this would be approached form a legal perspective (i.e. rather than legal advice per se more if this approach is possible). My main concern is ensuring that the agreement is binding on both sides. Thanks in advance to all for reading.