Through our many years of providing expert mortgage advice in Newcastle, our experienced mortgage advisors have seen the numbers rise when it comes to enquiries from renters interested in becoming First-Time Buyers in Newcastle by purchasing the home they are renting from their current Landlord.
Newcastle has always been a favourite of many to live in and enjoy the peaceful life, however, many tenants who are already living there find it difficult to own a property or house there. With changes in the tax realm, things are showing positive signs for tenants who want to buy their currently occupied house.
Many landlords are selling their property through the market agents, but some of them are also willing to sell their houses to the tenants who already occupy the building. If there is a house you want to purchase from your buy-to-let landlord, it will be much better to discuss the offer with them directly on a priority basis.
A big reason why more tenants are able to purchase their home from their Landlord, is that Government previously cracked down on tax relief on Buy to Let purchases. These changes took effect over a period of 4 years, and we are now starting to see the impact of these changes as Landlords receive their tax bills.
The juicy profit margins in buying and selling properties have always been a big attraction for landlords as there are great rewards in the property business. This profit is what convinced many businessmen to face the taxes and enjoy the feastful profits that follow in the property market.
Just like any other business, the property business has its downsides as well. News has been heard about landlords quitting the business and moving on to something else. Multiple reasons have been recorded for the transition including tax complications, financial demands, and even the stress of making huge risky deals.
If you are a tenant, and willing to buy, to let landlord of the house easily sell it to you, you can make a fine deal. As there will be no Estate Agents involved, no chunks of money will flee the deal as consultation fees which is an advantage for both parties. The landlord can further enjoy more benefits such as:
Suppose a landlord decides to sell his house, and the tenant takes his time to move out, during all this time, there will be no tenant and hence no rent. If a sitting tenant decides to buy the house, the transition of ownership will be much fluent and so will be the money inflow. The landlord will keep getting his rent until the deal is finalised for which he will receive the amount of the property.
If a tenant decides to move out and empties the house, the landlord will have to go through the tiniest details in the house and get the lacking ones repaired. Considering the costs of paints, cleaners, and other manpower, it will suck in a lot of money from the landlord.
All these expenses can be saved if the tenant decides to buy the house because he will be willing to purchase it in the existing condition. Hence, no money expenditure and hustle of repairs for the landlord.
This is where the deal sweetens. The tenant knows the house in and out and knows exactly what improvements and changes are needed. If you buy a house as a non-tenant, there is a risk of hidden lacks in the house that were not conveyed properly by the previous landlord. If you get a house with such issues, you might end up spending quite a lot of money just to be on the safe side.
Tenants may have multiple things they wanted to do to their house, but the landlord would not agree to it. But after you purchase to house, you will have the ultimate freedom to make any legal and permitted changes in the house with no limitations.
If you have been a tenant consistently on the move, you know how tense the situation can get if the tenant of your newly rented house is unable to move due to multiple obvious reasons. For instance, the previous tenants have not been able to find another house, or the house where they want to move has not been emptied yet.
Such situations have been a normal sight and can be avoided if you become the owner of your currently rented house. Therefore, it’s a good time to start living in the same house as its owner and decide to purchase the property from your buy-to-let landlord in Newcastle.
Yes, a discount is a big possibility in such cases because the landlord will be saved from a lot of stress and spending money as well.