We have been renting our home for the last 18 months from a private landlord. They recently approached us with the possibility of buying the property. My fiance isn't working at the moment so the bank would not give us the required amount for the mortgage. We have a deposit saved and I earn a decent wage in a secure job but a portion of my salary every month from overtime and bonus etc. as I travel quite a bit with my job.
I told the landlord that we were not in a position to buy a few weeks ago. This left us with the uncertainty of not knowing if the house was going to be sold hanging over us. We have moved a crazy amount in the last few years and really don't want to do it again. We were thinking of ways to try to buy the house as we like the area and my child is in school locally. We also have another one on the way in the new year.
Long story short I sent a mail to the landlord asking about the possibility of us entering into a rent to buy agreement. They have said they are considering it.
The terms I suggested was as follows :
- We could agree a rent which is above the current rate.
- Agree a sale price.
- We pay them a deposit of circa €5000.
- We agree a date that the sale should be completed by (with a view to completing this ASAP). ( 24 months??)
When we buy the rent paid + deposit is taken off the final price of the house.
In the event that the sale didn’t go through for any reason they keep the full rent plus the deposit.
I have had time to think more about this and am looking for some advice from people with an unbiased view. It seems like a good idea to me but I can't help but think there is a reason why people don't do this very often.
I have time to think about it and have a meeting with the landlord this week. Some input would be greatly appreciated.
I told the landlord that we were not in a position to buy a few weeks ago. This left us with the uncertainty of not knowing if the house was going to be sold hanging over us. We have moved a crazy amount in the last few years and really don't want to do it again. We were thinking of ways to try to buy the house as we like the area and my child is in school locally. We also have another one on the way in the new year.
Long story short I sent a mail to the landlord asking about the possibility of us entering into a rent to buy agreement. They have said they are considering it.
The terms I suggested was as follows :
- We could agree a rent which is above the current rate.
- Agree a sale price.
- We pay them a deposit of circa €5000.
- We agree a date that the sale should be completed by (with a view to completing this ASAP). ( 24 months??)
When we buy the rent paid + deposit is taken off the final price of the house.
In the event that the sale didn’t go through for any reason they keep the full rent plus the deposit.
I have had time to think more about this and am looking for some advice from people with an unbiased view. It seems like a good idea to me but I can't help but think there is a reason why people don't do this very often.
I have time to think about it and have a meeting with the landlord this week. Some input would be greatly appreciated.