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Rent to buy scheme thoughts or experience...

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  • 24-02-2018 3:00am
    #1
    Qweeny
    Registered Users Posts: 5 ✭


    Hi! I am currently renting a house that my landlord has asked myself and partner to buy. He has 0 interest in his house and it is perfect for us. But,we are not in a position to get a mortgage right now so are looking into rent to buy. Anyone shed some light on this? I am lost! We pay 700 rent now. And save as much as we can!


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    #2
    the_syco
    Registered Users Posts: 37,301 ✭✭✭✭the_syco


    Find a bank that will take the "rent" as a deposit, as otherwise it's worthless. Also, when you decide to "buy" it, the bank may value the house differently, and you may need a different deposit amount.


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    #3
    Qweeny
    Registered Users Posts: 5 ✭Qweeny


    Thanks for your reply! Sorry if i may sound stupid i really have no idea on this stuff! But how can the banks have a say in the valu of the house can the landlord not decide on a fixed amount? He is happy to sell it off at the price he has left to pay on it but it may be worth a bit more im not too sure...


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    #4
    Qweeny
    Registered Users Posts: 5 ✭Qweeny


    the_syco wrote: »
    Find a bank that will take the "rent" as a deposit, as otherwise it's worthless. Also, when you decide to "buy" it, the bank may value the house differently, and you may need a different deposit amount.

    Also,the rent that will go towards the buying of the house will hopefully just come off the peice of the house and we will have saved a deposit ourselves,does this make sense?


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    #5
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    The banks have disregarded the rent/deposit in recent years so it's unlikely your plan will be workable.

    Example.

    House is worth €120,000 and you've paid €20,000 in rent which you would like to count as your deposit. That leaves you €100k to finance.

    The bank will ignore the €20,000 and any mortgage offer will assume the house is worth €100,000 which means you might get a mortgage of €80,000 - €90,000.


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    #6
    Samuel T. Cogley
    Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    Qweeny wrote: »
    Thanks for your reply! Sorry if i may sound stupid i really have no idea on this stuff! But how can the banks have a say in the valu of the house can the landlord not decide on a fixed amount? He is happy to sell it off at the price he has left to pay on it but it may be worth a bit more im not too sure...

    A trained professional will decide on the value of the property based on a number of factors. You should be getting a valuation and survey anyway before embarking on this.
    Qweeny wrote: »
    Also,the rent that will go towards the buying of the house will hopefully just come off the peice of the house and we will have saved a deposit ourselves,does this make sense?

    I have no idea why any LL would do this but I suppose if they can't shift it any other way. As above valuation, survey, then have an agreement drawn up by two independent solicitors (one for you, one for the LL). There is going to be some significant fees to get the ball rolling on this.


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    #7
    Qweeny
    Registered Users Posts: 5 ✭Qweeny


    Samuel T. Cogley wrote: »
    A trained professional will decide on the value of the property based on a number of factors. You should be getting a valuation and survey anyway before embarking on this.



    I have no idea why any LL would do this but I suppose if they can't shift it any other way. As above valuation, survey, then have an agreement drawn up by two independent solicitors (one for you, one for the LL). There is going to be some significant fees to get the ball rolling on this.

    Thank you! Our LL doesnt even live in this country,bought the house as investement and now wants rid.we get on pretty well and in his words he would love for us to buy it! Had the house valued before by auctioneer, he is speaking to his solicitor soon so will take it from there..


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