lampkin Posted February 10, 2006 Share Posted February 10, 2006 Hi, My girlfriend and I have lived in this house for the last 6 months, we are really happy here. The land lord is now putting the house up for sale. He bought the house in 2004, hes split up with his girlfriend and is being forced to sell: 37 New Beech Road, Stockport, Greater Manchester, SK4 3DD £160,000 Terraced Freehold Build status not stated 11-Jun-2004 Map (SK4 3DD) Its 2 bed with a cellar, not good for raising a family. I now earn £22k with good prospects, my girlfriend is a nurse who earns about £18.5k. We are looking for a home, and this woud be our ideal home, not a family home though. Great neighbours and a very nice area. My neighbour is a good friend but also a bull and a better friend of the land lord. He told me the land lord paid £165k and should sell for £170k. It looks like we may have to wait this one out until the land lord is forced to sell it to us cheap...Unless of course he does get offers? Any suggestions? should we avoid buying and continue to rent? Will be a shame as we really like it here... Seb Quote Link to comment Share on other sites More sharing options...
karhu Posted February 10, 2006 Share Posted February 10, 2006 (edited) Any suggestions? should we avoid buying and continue to rent? Will be a shame as we really like it here... Seb It wouldn't do you any harm to discuss your intentions to buy with the landlord. Potentially you could save him agency fees etc. and a lot of hassle. You would need to buy well below the asking price though, unless you have a reasonable deposit Edited February 10, 2006 by karhu Quote Link to comment Share on other sites More sharing options...
lampkin Posted February 10, 2006 Author Share Posted February 10, 2006 It wouldn't do you any harm to discuss your intentions to buy with the landlord. Potentially you could save him agency fees etc. and a lot of hassle. You would need to buy well below the asking price though, unless you have a reasonable deposit We have no savings, but theres family... Quote Link to comment Share on other sites More sharing options...
Given Up Posted February 10, 2006 Share Posted February 10, 2006 Net house price shows it sold on 11 June 2004 for 160,000 23 sold for 172 k in june 2005 and 27 sold for 149 in Oct 2005 followed by number 9 in december for 174,500 http://www.nethouseprices.com/index.php?co...DD+&town=&year= My guess is he has priced it for a quick sale and it could go for asking price. However you are living there and no place shows as well with tenants. So maybe he might do a deal with you? You wil be able to tell by the number of viewings he gets. Quote Link to comment Share on other sites More sharing options...
Ngugi Posted February 10, 2006 Share Posted February 10, 2006 Hi, My girlfriend and I have lived in this house for the last 6 months, we are really happy here. The land lord is now putting the house up for sale. He bought the house in 2004, hes split up with his girlfriend and is being forced to sell: 37 New Beech Road, Stockport, Greater Manchester, SK4 3DD £160,000 Terraced Freehold Build status not stated 11-Jun-2004 Map (SK4 3DD) Its 2 bed with a cellar, not good for raising a family. I now earn £22k with good prospects, my girlfriend is a nurse who earns about £18.5k. We are looking for a home, and this woud be our ideal home, not a family home though. Great neighbours and a very nice area. My neighbour is a good friend but also a bull and a better friend of the land lord. He told me the land lord paid £165k and should sell for £170k. It looks like we may have to wait this one out until the land lord is forced to sell it to us cheap...Unless of course he does get offers? Any suggestions? should we avoid buying and continue to rent? Will be a shame as we really like it here... Seb It is likely he is aware of current problems with chains etc. etc., so no harm in asking landlord direct if he would consider selling direct to you for knock down price. You would save him loads of money/effort to decorate & market the house via usual route, and a guaranteed buyer is good if he needs the dosh. Go for 150k - which is just above your 3.5 multiple. Quote Link to comment Share on other sites More sharing options...
lampkin Posted February 10, 2006 Author Share Posted February 10, 2006 (edited) Net house price shows it sold on 11 June 2004 for 160,000 23 sold for 172 k in june 2005 and 27 sold for 149 in Oct 2005 followed by number 9 in december for 174,500 http://www.nethouseprices.com/index.php?co...DD+&town=&year= My guess is he has priced it for a quick sale and it could go for asking price. However you are living there and no place shows as well with tenants. So maybe he might do a deal with you? You wil be able to tell by the number of viewings he gets. He wants to talk with us about it this weekend, i think he might let us get first offer in. edit: oh the house was fairly well decorated last year for renting out.. Edited February 10, 2006 by sllabres Quote Link to comment Share on other sites More sharing options...
karhu Posted February 10, 2006 Share Posted February 10, 2006 (edited) We have no savings, but theres family... If you have no savings then I'd suggest renting and trying to save for a while. Buying in today's market could leave you with serious negative equity issues IMO. You need a cushion. It is likely he is aware of current problems with chains etc. etc., so no harm in asking landlord direct if he would consider selling direct to you for knock down price. You would save him loads of money/effort to decorate & market the house via usual route, and a guaranteed buyer is good if he needs the dosh. Go for 150k - which is just above your 3.5 multiple. I agree, but I still think it's sensible to have AT MOST a 95% LTV mortgage at the moment. That would be a 7.5k deposit. Edited February 10, 2006 by karhu Quote Link to comment Share on other sites More sharing options...
lampkin Posted February 10, 2006 Author Share Posted February 10, 2006 If you have no savings then I'd suggest renting and trying to save for a while. Buying in today's market could leave you with serious negative equity issues IMO. You need a cushion. I agree, but I still think it's sensible to have AT LEAST a 95% LTV mortgage at the moment. That would be a 7.5k deposit. My family might be able to help out.. My neighbour seems to think it would go for £165k private sale to us. Quote Link to comment Share on other sites More sharing options...
karhu Posted February 10, 2006 Share Posted February 10, 2006 My family might be able to help out.. My neighbour seems to think it would go for £165k private sale to us. 15k is a lot of money. Make it clear the max you can afford is 150k and get a 7.5k deposit. Quote Link to comment Share on other sites More sharing options...
svag Posted February 10, 2006 Share Posted February 10, 2006 Surely the guy would want at least his money back, why would he drop 10k? Quote Link to comment Share on other sites More sharing options...
lampkin Posted February 10, 2006 Author Share Posted February 10, 2006 Surely the guy would want at least his money back, why would he drop 10k? Exactly my thought, 99% of the population still thinks house prices are soaring. I think he'll expect at least £165k. It seems risky waiting around for him to try and sell it, it seems there is a chance he could sell it for more than that.. Quote Link to comment Share on other sites More sharing options...
karhu Posted February 10, 2006 Share Posted February 10, 2006 Exactly my thought, 99% of the population still thinks house prices are soaring. I think he'll expect at least £165k. It seems risky waiting around for him to try and sell it, it seems there is a chance he could sell it for more than that.. It should never be a matter of what he wants, but what YOU can afford confortably. You could probably buy that house for 50k in 1999. Quote Link to comment Share on other sites More sharing options...
lampkin Posted February 10, 2006 Author Share Posted February 10, 2006 It should never be a matter of what he wants, but what YOU can afford confortably. You could probably buy that house for 50k in 1999. Very true, i guess we will have to weigh it all up this weekend. Quote Link to comment Share on other sites More sharing options...
Given Up Posted February 10, 2006 Share Posted February 10, 2006 It should never be a matter of what he wants, but what YOU can afford confortably. You could probably buy that house for 50k in 1999. Has he actually put it up for sale? If not then you would save him the agents fees (?3k). What is the market like round your way? Are there lots of places for sale? are they going quickly or slowly? Do a bit of research and then make him an offer if you want to. Quote Link to comment Share on other sites More sharing options...
lampkin Posted February 10, 2006 Author Share Posted February 10, 2006 Has he actually put it up for sale? If not then you would save him the agents fees (?3k). What is the market like round your way? Are there lots of places for sale? are they going quickly or slowly? Do a bit of research and then make him an offer if you want to. It isnt up for sale yet i believe, the agency have done a valuation though. They came around the other day saying they were doing it for "insurance purposes", i knew they were lieing and the land lord was suprised to hear they said that i am told.. There are a few houses on the street for sale, some have been up a while i think. Quote Link to comment Share on other sites More sharing options...
Bubble Pop Electric Posted February 10, 2006 Share Posted February 10, 2006 Hi, We are looking for a home, and this woud be our ideal home, not a family home though. Great neighbours and a very nice area.Any suggestions? should we avoid buying and continue to rent? Will be a shame as we really like it here... Seb What if in a few years time you want to start a family - is this a long term or short term buy? It may be very frustraiting, if you can't sell your house, if it is in negative equity - you could really regret it. You need to ask yourself if it ticks all the boxes at the right price, is it in the right area for schools. That's only based on the fact you may want children in the near future. From personal experience it is no fun knowing you are in negative equity, and cannot move to an area that would give you a far better quality of life, even though houses are affordable. If you are going to have children soon - take into account all the possibilities (apologies for droning on if you won't be having children!) Quote Link to comment Share on other sites More sharing options...
othello Posted February 10, 2006 Share Posted February 10, 2006 Do you really want to take on such a huge mortgage? Quote Link to comment Share on other sites More sharing options...
lampkin Posted February 10, 2006 Author Share Posted February 10, 2006 What if in a few years time you want to start a family - is this a long term or short term buy? It may be very frustraiting, if you can't sell your house, if it is in negative equity - you could really regret it. You need to ask yourself if it ticks all the boxes at the right price, is it in the right area for schools. That's only based on the fact you may want children in the near future. From personal experience it is no fun knowing you are in negative equity, and cannot move to an area that would give you a far better quality of life, even though houses are affordable. If you are going to have children soon - take into account all the possibilities (apologies for droning on if you won't be having children!) We are both 23 now and would be thinking about kids between 28-30+. So we would be looking to live here for about 5 years or more. Quote Link to comment Share on other sites More sharing options...
karhu Posted February 10, 2006 Share Posted February 10, 2006 Very true, i guess we will have to weigh it all up this weekend. I'd put in an offer of 150k. If he says no, then let him put it on the market with an EA. After it's been seasoned for a few months you can try again at the same price and try a few similar properties for competition. We know where the market is going. Quote Link to comment Share on other sites More sharing options...
Fancypants Posted February 10, 2006 Share Posted February 10, 2006 First, find out why he's selling! Quote Link to comment Share on other sites More sharing options...
lampkin Posted February 10, 2006 Author Share Posted February 10, 2006 First, find out why he's selling! He has moved down south and just split up with his partner. I think we might be forced to put in a low offer anyhow and just wait it out, we cant really afford £165...£150k is bad enough. Quote Link to comment Share on other sites More sharing options...
karhu Posted February 10, 2006 Share Posted February 10, 2006 He has moved down south and just split up with his partner. I think we might be forced to put in a low offer anyhow and just wait it out, we cant really afford £165...£150k is bad enough. To be honest in such a negotiation the worst thing that can happen is that they say "yes" because then you dwell on the fact that you could have put a lower offer in..... Quote Link to comment Share on other sites More sharing options...
Fancypants Posted February 10, 2006 Share Posted February 10, 2006 He has moved down south and just split up with his partner. I think we might be forced to put in a low offer anyhow and just wait it out, we cant really afford £165...£150k is bad enough. why does this mean he has to sell the place though? Can he no longer afford the mortgage? It would suggest that it is cash-flow negative overall... in which case, time is very much on YOUR side. stick in a low offer and play chicken. (Fancypants is not regulated to give financial advice and in following his addled ramblings you forgo your right of complaint) Quote Link to comment Share on other sites More sharing options...
homeless Posted February 10, 2006 Share Posted February 10, 2006 22k a year wages and a gf with 18k a year and you have not saved anything? Quote Link to comment Share on other sites More sharing options...
lampkin Posted February 10, 2006 Author Share Posted February 10, 2006 why does this mean he has to sell the place though? Can he no longer afford the mortgage? It would suggest that it is cash-flow negative overall... in which case, time is very much on YOUR side. stick in a low offer and play chicken. (Fancypants is not regulated to give financial advice and in following his addled ramblings you forgo your right of complaint) Yes, i very much doubt we can take on this kinda of mortgage. Putting in a crap offer is our only real option if we want a chance of owning this house. Living in London is very expensive i hear... Cheers everyone for the advice so far!!! Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.