Can I buy my house from my landlord?

Answered on 7 February 2016 by Nick Morrey


I have been living in my landlords house now for about 4 years and he now wants to sell it. He has given me first refusual and I want to buy it, but I am not working. He has a £40,000 interest only mortgage, I would like to get a capital & interest repayment mortgage, he owes £141,000, to pay it off. He said he would loan me a written loan of £40,000 to allow me to get on the mortgage ladder which I would have to give back to him when I sold it. I would repay the mortgage by renting the rooms in the house,which is near a very popular seaside town. Can you help me, or guide me in what I may do to get a mortgage? I would be buying the house, running it and when I got it up and running I could come off my benefits, become self-sufficient and not rely on government funding for my income. Please help, I really do believe I can do it or I wouldn't be wasting my time or yours.


Buying From Your Landlord

Buying from your landlord would work the same as buying a standard residential property as it is private. However, in your particular case it suggests that they are lending you the deposit.

From the information provided above it is being described that you are not look to live in the property but instead rent it out. which means you would not be able to get a standard residential mortgage for various reasons, but mainly your reliance on government benefits and the type of property.

Becoming a Landlord

It might be possible to obtain a commercial mortgage to enable you to run the property as you wish, this is a possibility without certainy. You would need to be able to present a sound business plan based on and future current rental demand, your landlord should have records to help you with this and present it to your local bank manager when applying for the finance.

A good independent mortgage broker with experience of commercial markets would also be able to help you put together a business plan and know which lenders to approach to give you a greater chance of being successful. We recommend that you speak to one before contacting your landlord so that you know exactly what information to get from him.

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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