Rented house put up for sale

Sunny Dayz

Got a phone call Friday afternoon from a representitive of our landlord to say that the house we have been renting for nearly a year and a half has been put on the market for sale. (We pay our rent through a letting agent so we don't have any dealings with landlord directly but it wasn't the letting agency who rang that time).

The guy has said that we are ok in the house as we are and that the house will require viewing by potential buyers. But if someone buys the house and wants to live in it, we will be out on our ear as soon as our lease is up?

Now the thing is we were hoping to be in a position to buy late this year/ early next year. But we have looked at the price of the house and we think we actually have enough of a deposit together and the mortgage repayments would work out at the amount of rent we are currently paying (subject to approval of course!).

I am just wondering would the fact that we are tenants work in our favour or can be used to gain advantage in buying the house?

The house does need some repair work - can that be factored in to reduce the cost price?

Sorry - new to the whole buying a house thing - I had a look at buying a house in 2012 thread but I think both our heads are fried at the minute with this news and what to do... So helpful advice and tips gratefully accepted!

TheDriver

ohhhhh don't rush that one. It would seem way too easy to buy your current house and not long elsewhere but the LL could see an opportunity to screw you knowing it would be nicer and easier to stay put. careful careful

Sunny Dayz

We were kinda hoping it would be the other way around, that we could get it for cheaper again cos we are already living in it..
Or am I wrong??

TheDriver

would depend on the LLs attitude and interest in the house.

djimi

Its worth asking as the landlord would have the advantage of not having to advertise it, show it out and wait for a buyer.

I agree with TheDriver though; do not rush into this. Youre at an advantage in that you know the house and the area and are already settled in it, but do not let that stop you from carrying out the same process as you would when looking for any other house. Research other houses, other areas, and make sure that the price that you would get your current house for is satisfactory and that you wouldnt get a better deal/house elsewhere.

Of course, the fact that you are settled and obviously happy with the area may be worth paying a little extra for, but thats really up to you to decide.

Sunny Dayz

djimi wrote: »

Research other houses, other areas, and make sure that the price that you would get your current house for is satisfactory and that you wouldnt get a better deal/house elsewhere.

Of course, the fact that you are settled and obviously happy with the area may be worth paying a little extra for, but thats really up to you to decide.

Thanks Djimi - what is actually making us stand up and take note is the fact that the asking price is lower than what we would expect of a detached 4bed in an estate. We have had an eye on the market in the last year or two in this town, the next town and surrounding areas and IMO it seems priced to sell quickly.

paul71

Sunny Dayz wrote: »

Thanks Djimi - what is actually making us stand up and take note is the fact that the asking price is lower than what we would expect of a detached 4bed in an estate. We have had an eye on the market in the last year or two in this town, the next town and surrounding areas and IMO it seems priced to sell quickly.

There could be a reason it is priced lower Sunny Dayz, as tenants you have certain rights and should any new owner wish to live in the house they would not be able too as you have a part 4 lease. A tenant may agree to move out of a newly sold house if the new owner makes an offer of compensation to buy them out of the lease. It is possible that the price being sought for your house is taking account of this.

sunnysoutheast

paul71 wrote: »

Sunny Dayz wrote: »

Thanks Djimi - what is actually making us stand up and take note is the fact that the asking price is lower than what we would expect of a detached 4bed in an estate. We have had an eye on the market in the last year or two in this town, the next town and surrounding areas and IMO it seems priced to sell quickly.

There could be a reason it is priced lower Sunny Dayz, as tenants you have certain rights and should any new owner wish to live in the house they would not be able too as you have a part 4 lease. A tenant may agree to move out of a newly sold house if the new owner makes an offer of compensation to buy them out of the lease. It is possible that the price being sought for your house is taking account of this.

The intention to sell the property is a valid ground for terminating a part 4 lease, subject to the appropriate notice period.

Op - if you haven't been given formal notice yet this will be 42 days for your tenure, you can agree a shorter period if you wish. In terms of buying the house you have the advantage of knowing the neighbours, area, any issues with the house etc. in more detail than usually possible with a viewing and survey.

SSE

Sunny Dayz

sunnysoutheast wrote: »

The intention to sell the property is a valid ground for terminating a part 4 lease, subject to the appropriate notice period.

We are not on a part 4 lease - we have a one year lease bringing us to March next year. Does that make any difference to the above?

djmcr

If you are interested in buying you could get an agent to act on your behalf. Set a price and dont let them bid over that price. They wont be emotionally attached to the house like you are and won't let the heart rule the head.

sunnysoutheast

Sunny Dayz wrote: »

sunnysoutheast wrote: »

The intention to sell the property is a valid ground for terminating a part 4 lease, subject to the appropriate notice period.

We are not on a part 4 lease - we have a one year lease bringing us to March next year. Does that make any difference to the above?

Sorry should really have said part 4 tenancy. Have a look at citizensinformation.ie for the way the four year cycles work.

SSE

rcdk1

Sunny Dayz wrote: »

We are not on a part 4 lease - we have a one year lease bringing us to March next year. Does that make any difference to the above?

As you're there more than 6 months, you do have a Part 4 tenancy but you can also, concurrently, be signed up to a Fixed Term lease. If you have signed up to a Fixed Term lease then you are in a very strong bargaining position.

Essentially unless there's a specific opt-out clause in the contract or you don't meet your obligations as a tenant (non-payment of rent etc) then the landlord can't force you to leave until March 2013.

The following link is a leaflet from the PRTB on terminating a Fixed Term tenancy: http://public.prtb.ie/DownloadDocs/Termination%20of%20FT.doc
You should read it all but two sections in particular that are relevant:

In cases of fixed term tenancies however, the rights under Part 4 only apply to the extent that they benefit the tenant over and above the rights afforded to him or her under the terms of the fixed term tenancy.

A landlord can only terminate a fixed term tenancy where there the tenant has been in breach of his or her obligations. Accordingly, a landlord cannot rely on the provisions of Section 34, to terminate a fixed term tenancy during the fixed term. Following the expiration of the fixed term period however, if the tenant has exercised his rights under Part 4, to extend his tenure for the remainder of the Part 4 tenancy of 4 years, the landlord can from then on, rely on the provisions of Section 34.

odds_on

+1
Absolutely correct, rcdk1. If you have another fixed term lease, it gives you more security than a Part 4 lease. You can only be evicted for breach of terms and conditions (your obligations) of the lease agreement.

Furthermore, you are not obliged to offer viewings during your tenancy of the property as this would breach your peaceful enjoyment your home, even if the landlord/agent makes a prior appointment; you can refuse any viewings - it is your right.

Marcusm

paul71 wrote: »

There could be a reason it is priced lower Sunny Dayz, as tenants you have certain rights and should any new owner wish to live in the house they would not be able too as you have a part 4 lease. A tenant may agree to move out of a newly sold house if the new owner makes an offer of compensation to buy them out of the lease. It is possible that the price being sought for your house is taking account of this.

If it's part 4 then the new owner can require vacant possession at sale - a sale is one of the occasions on which part 4 tenancies can be terminated by the landlord - another is to take possession so I don't think that will be worthy of a discount.

Gloomtastic!

We bought a house we were renting, lived in it, and then sold it to the tenants when we rented it out later. Made the whole buying/selling process very stress free. Highly recommend it!