nautilus Posted January 28, 2008 Share Posted January 28, 2008 Going to view a property tomorrow on at 255K. Funny thing is that it was bought in May 2007 for 220K. So you would think it has probably been renovated to justify the 35K increase. Wrong! On the phone the agent prewarned me that the property needed some renovation work done so I then asked how she justified the price increase given the market conditions etc. The seller is really trying it on and is going to get a reality check if we put an offer in. Could be fun this one! Quote Link to comment Share on other sites More sharing options...
drrayjo Posted January 28, 2008 Share Posted January 28, 2008 Going to view a property tomorrow on at 255K. Funny thing is that it was bought in May 2007 for 220K. So you would think it has probably been renovated to justify the 35K increase. Wrong! On the phone the agent prewarned me that the property needed some renovation work done so I then asked how she justified the price increase given the market conditions etc. The seller is really trying it on and is going to get a reality check if we put an offer in. Could be fun this one! Keep us posted Quote Link to comment Share on other sites More sharing options...
nautilus Posted January 30, 2008 Author Share Posted January 30, 2008 Just a quick update. We were meant to view the property yesterday but things took an interesting turn. Apparently the house is currently let and the tenant thought she would be there for a long time. The agent phoned the house to say we were coming round but the tenant said she hadnt had the 2 days notice stated in her contract and refused access. Clearly she isnt happy the house is being sold and is playing it by the book to make things difficult. Since the house was only bought last May it is clear that either the owner has financial difficulties and needs the money or he is panicking seeing his pension going down in value day by day. Either way if we like the house hes going to get squeezed hard and made to rue the error of his ways! New appointment on Thursday to view so we will see then. Quote Link to comment Share on other sites More sharing options...
nautilus Posted January 31, 2008 Author Share Posted January 31, 2008 It gets even more unbelievable! The owner thought he had a contract to let the property for 12 months with something like a 6 month getout clause. The person renting pointed out to him that there is no getout and she is in there till September and she wont allow any viewings. He can even market the property till July now (2 months before the end of the contract). Apparently he is in financial difficulty and needs to offload ASAP. What a complete muppet - must be a new BTL that hasnt even got the brains to read the contract he signed. The bottom line is that now we cant even get in to view the property which is frustrating as it looks potentially good for us especially as we will be able to drive a hard deal given his situation. Quote Link to comment Share on other sites More sharing options...
nautilus Posted January 31, 2008 Author Share Posted January 31, 2008 Its mainly me posting on this thread but Im having fun! Now we have managed to get a viewing this evening after I suggested that the sale could be with the tenant in situ till the contract expires. The seller is so desperate that I think that we could be in an extremely strong negotiating position.... if we even like it of course. Anyone know if this would cause a big problem with getting a mortgage - it would be as a temporary BTL for a few months before being our place to live. Quote Link to comment Share on other sites More sharing options...
Paddles Posted January 31, 2008 Share Posted January 31, 2008 Its mainly me posting on this thread but Im having fun!Now we have managed to get a viewing this evening after I suggested that the sale could be with the tenant in situ till the contract expires. The seller is so desperate that I think that we could be in an extremely strong negotiating position.... if we even like it of course. Anyone know if this would cause a big problem with getting a mortgage - it would be as a temporary BTL for a few months before being our place to live. Presumably you've got a mortgage agreed in principle already? Just give them a call and ask them. So what's your top offer in your mind? I would say May 2007's price less 30% would be realistic. So £132k ish Quote Link to comment Share on other sites More sharing options...
nautilus Posted January 31, 2008 Author Share Posted January 31, 2008 Tough to know where to pitch a bid yet before having seen it. For where we are looking - reasonably good area in Southampton the price being asked for a 4 bed is not that high. Prices here seem quite static at the moment on the asking prices but who knows what they are actually going for. Think a 30% drop on May 2007 price might be pushing it too far (which would be 154K). That wouldnt get anything much in Southampton Quote Link to comment Share on other sites More sharing options...
nautilus Posted January 31, 2008 Author Share Posted January 31, 2008 I agree with making an offer that is embarassing but at the same time it needs to be realistic enough to tempt the seller to capitulate. Quote Link to comment Share on other sites More sharing options...
OzzMosiz Posted January 31, 2008 Share Posted January 31, 2008 Obviously depends how much you want to offer (if any good) I'd go for £195 and be ready to be upped to £205 still less than the muppet bought for. Quote Link to comment Share on other sites More sharing options...
DabHand Posted January 31, 2008 Share Posted January 31, 2008 Sorry but why would you want to buy with a tenant in situ? You are going to have to try and secure a BTL mortgage, giving you exposure to the risks of owning a property, but still having to own or rent somewhere else. Not only that, but the tenant may continue to be awkward with you. No rent payments, property damage, refusing to move out?? No house is worth the farce of becoming an accidental landlord. Quote Link to comment Share on other sites More sharing options...
nautilus Posted January 31, 2008 Author Share Posted January 31, 2008 Having a tenant in situ is far from ideal and not what I would have chosen of course. Problem is the house is the only one out of about 25 we have viewed that fulfills our needs at the right price. It looks too good to miss but Im going to thoroughly check the tenants contract and get in touch with the letting agents first. I also think the seller is desperate to sell and will be more likely to accept a low offer. House is big for the price just needs a bit of sprucing up Quote Link to comment Share on other sites More sharing options...
ROC Posted February 1, 2008 Share Posted February 1, 2008 Having a tenant in situ is far from ideal ... Too right! Tenant might decide to stay put, may say that the vendor promised he would be Ok and that you knew about this because it is clearly reflected in the price. It would be 'unconscionable' for you to turn the tenant out. You may be faced with the tenant having an equitable interest informally created but supported by the courts. You may find you have compromised a term of any mortgage by not taking with vacant possession. Examining the tenant's agreement may not be enough. Stay clear, or pay a lawyer (they carry insurance!) Quote Link to comment Share on other sites More sharing options...
microbe Posted February 1, 2008 Share Posted February 1, 2008 Why don't you just wait until the mortgagee auctions it off? Quote Link to comment Share on other sites More sharing options...
othello Posted February 1, 2008 Share Posted February 1, 2008 I suggest you put in a reasonable offer (max of 10% below asking price) and then drop your offer just before exchange by another 10% on the grounds of work being needed etc. Much more likely to get it that way. Quote Link to comment Share on other sites More sharing options...
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