Buy House From Landlord
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Buy House From Landlord
Lewis Shaw explains the process of buying a rental house from your landlord.
What happens if my landlord decides to sell? Can I buy my rental house from my landlord?
If your landlord decides to sell the home you’re renting, they must give you notice. They generally can’t ask you to leave until your tenancy has ended.
If they have given you notice, you could ask if you can buy the property from them. As long as you can borrow the necessary amount, you may be able to purchase it. You’ll likely need a mortgage to cover the difference between your deposit and the purchase price.
What is the process of buying a rented house from a landlord in the UK?
Buying a property from your landlord is similar to purchasing one on the open market, except there’s no estate agent involved. This is classed as a private sale, and lenders will want to ensure the transaction is happening at fair market value.
If your landlord has agreed to sell, speak to a mortgage broker to determine if you can borrow the required amount. If you can secure a mortgage, you can then negotiate the purchase price. Just because it’s your landlord selling doesn’t mean you can’t negotiate. However, they could decide to list the property with an estate agent instead.
The legal process is almost identical to buying on the open market. You’ll need a conveyancer to complete the legal process on your behalf and apply for your mortgage as usual. Your landlord will also need to instruct a conveyancer for their side of the transaction.
When choosing a lender, your mortgage broker will need to inform them that the sale is a private sale with no estate agent involved. Most lenders are comfortable with this.
Can a landlord just sell the house you’re renting? What are my rights if my landlord wants to sell?
A landlord can’t sell the property while you’re in the middle of a tenancy unless they sell it to another landlord who intends to keep renting it out. They must wait until your tenancy ends or is due to expire, at which point they can serve notice. Renters’ rights are changing, so check to see what your rights are if you think you’re being treated unfairly.
If you’re unable to buy, this gives you time to find a new home. They can sell the property, but they can’t evict you without following the correct legal process.
One option for landlords looking to sell is to sell ‘in situ,’ meaning the tenant remains in place. This must be made clear so the buyer knows they’ll be purchasing a tenanted property.
A landlord cannot simply force tenants out onto the street—they must wait for the tenancy to end, sell in situ, or serve notice once the tenancy has expired.
How much notice must a landlord give a tenant when selling a property?
A landlord must give at least two months’ notice when selling a property. However, rental regulations are changing. As of February 2025, updates to renters’ rights are underway, so it’s important to stay informed about any changes.
How can I buy a house from my landlord without a deposit?
It is possible to buy from your landlord without a deposit in a few ways:
- 100% Mortgage – Some lenders offer mortgages that cover the full purchase price, though these are rare. One type bases affordability on whether your current rent is higher than the potential mortgage payment. If so, and your income supports it, you may qualify for a zero-deposit mortgage.
- Family Guarantee / Family Assist Mortgage – If a family member, such as your parents, owns a mortgage-free home, they could allow the lender to take a charge against their property. This enables you to borrow 100% of the purchase price, though it carries risk—if you default, their home could be at risk.
- Concessionary Purchase – Some lenders may allow that discount to count as your deposit if your landlord offers you a discount on the property’s market value (e.g., selling for £142,500 instead of £150,000). This means you’re effectively buying without putting in cash upfront.
The right approach depends on your circumstances, so it’s best to seek advice.
What are the costs of buying my rental property?
Buying your rental home involves several costs:
- Mortgage fees – Potential costs include booking fees, valuation fees, and survey fees.
- Solicitors’ fees – You’ll need to pay for conveyancing.
- Broker fees – If using a mortgage broker, they may charge a fee.
- Stamp Duty Land Tax – This varies depending on the property price and whether you’re a first-time buyer.
Even if you buy with no deposit, you’ll still need savings to cover these additional costs.
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What is a leaseholder?
A leaseholder owns a lease over a property but not the land it sits on. This differs from a freehold, where you own both the property and the land.
Leaseholds typically start at 99, 125, or 999 years and reduce over time. Once the lease expires, ownership of the property reverts to the freeholder. Essentially, you’re buying the right to occupy the property for a set period.
Can I apply to buy if I have rent arrears?
It depends. If you have a deposit, stable income, and can secure a mortgage, rent arrears might not be an issue. However, your landlord may be hesitant to sell to you, and some lenders require proof of timely rental payments.
If you’re in arrears and need a lender that checks rental history, it could pose a problem. It’s best to seek expert advice.
Do I have to complete the purchase within a specified time?
Not necessarily. Your landlord may set a deadline, especially for tax reasons, but unless a legal agreement states otherwise, there’s no fixed timeline. Most buyers and sellers prefer a quick transaction, but you can’t be forced to complete within a specific timeframe.
What happens if my landlord delays the sale?
If your landlord delays selling—perhaps due to tax reasons—there’s little you can do. As the property owner, they’re not legally obligated to sell until they choose to proceed.
What if I want to remortgage?
If you’ve bought the property and your mortgage deal is ending, you can remortgage as you would with any other home purchase.
Can I sublet the property or have a lodger?
If you own the property, some lenders allow lodgers, and there’s a tax-free rental income threshold—check the latest figures on the government website.
If you’re renting and want to sublet, you likely need your landlord’s permission, as most tenancy agreements prohibit subletting without consent.
What are the pitfalls of buying a tenanted property?
If you buy a property with tenants in place, you must honour the existing tenancy agreement. This means you can’t immediately evict tenants or change the rental terms.
You could inherit a great tenant—or a problematic one. Understanding the tenancy agreement is crucial before purchasing.
What are the pros and cons of buying your rental property?
Pros:
- No need to move—avoid packing, removal costs, and disruption.
- Faster transaction—fewer complications and no property chain.
Cons:
- The property may need work.
- It might not be your ideal home, but you feel pressured to buy.
- Renting a similar property may be more affordable.
Final Thoughts
If your landlord is selling, it’s best to seek advice early. Understanding your options quickly allows you to plan effectively.
We’re here to help, whether that means buying or not. Our goal is to give you the knowledge to make the right decision.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE MOST BUY TO LET MORTGAGES.
