Is this possible - buying a landlord out

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pinkyponk2

Registered User
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16
Just wondering if this is possible.

Say a tenant is paying 1,000 p/m rent to a landlord.

Could the landlord sell the house to the tenant (get a proper contract in place etc etc) but the tenant just continues to pay the 1,000 p/m.

So the tenant now owns the house, the landlord is guaranteed to get 1,000 p/m for the next 30 years ... and best of all the tenant doesnt pay those crazy interest rates charged by the banks.
 
I love it.
The landlord gives the tennant the house for free and in return gets a long term rental agreement!
Wouldnt mind meeting someone like that.
 
Quote - "So the tenant now owns the house"

The tenant would own nothing! The landlord would have to be paid the full purchase price of the house before ownership would pass. Unless of course he's willing to lend you the money to buy his own house....with no interest!! Good luck with that one!!!
 
aristotle said:
eh what?
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Very helpful. Anything to get your post count up i suspect.

runner said:
I love it.
The landlord gives the tennant the house for free and in return gets a long term rental agreement!
Wouldnt mind meeting someone like that.
Click to expand...

I have been renting the house for a very long time and have a very good relationship with my landlord and know he would be interested in this. Why would someone not want a guaranteed monthly income for what would probably be the rest of his life?

Kerrylady said:
Quote - "So the tenant now owns the house"

The tenant would own nothing! The landlord would have to be paid the full purchase price of the house before ownership would pass. Unless of course he's willing to lend you the money to buy his own house....with no interest!! Good luck with that one!!!
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Emmm i beg to differ. It would be signed over just like a parent would sign a house over to their child. Therefore it would be the tenants and there would be a legal arrangment put in place re the payments and any possible risks.

As the title said "is this possible" - thats all i wanted to know. What a bunch of horrible people, really glad i came here for your wonderful advice. You're giving this website a really good reputation!
 
Unless it is held mortgage free, then it can't be "just signed over". The bank will have to be paid off from somewhere before they release the deeds.
There are also tax implications - you could be seen as recieving a gift of the current value of the house.

Also, if either you or the landlord die, how is that eventuallity handled?
 
Thank you Berni - a decent answer at last!

They fully own the house, bought it 30 years or so ago, lived in it for about 14 years and now own a different house.

It was things like tax implications i was wondering about. Will look into that.

The risks i.e. the landlord or me dying would be in the contract. For example if he died the payments would go to his wife, is she then died the payments would go to his children until the contract states. If i died they would own the house again.
 
pinkyponk2 said:
Very helpful. Anything to get your post count up i suspect.
!
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Yeah I am big into my post count :)

Seriously, no this is not an option unless your landlord is willing to enter into such an agreement. He\She would not be able to do so if there are any existing mortgages on the property.

But why would any landlord enter into such an agreement? Its just a bizarre and needlessly complicated transaction full of potential problems down the road. The landord gets nothing out of this except rent which they currently get and yet they loose the property.
 
How is it complicated? They'd get the monthly income they are used to getting without the hassle that comes with being a landlord. Once it was all done by a solicitor i cant see why it would be complicated.

All i really wanted to know was it legally possible and i think by your reply it is so thanks for that.
 
Look at it from the landlords perspective and it might become clearer why this is a non runner.

He could sell for say 200k and get 200k in cash immediately or he could transfer ownership to you for €1000 and the promise of €1000 forever so it would take him 16 years to get the same amount of money as if he sold - not factoring in present value of money.

So he gets €200,000 hard cash or €1000 and a promise of an income stream.

Why would your landlord agree to this?
 
See he doesnt really want to be a landlord as such. Just happened to keep his old house as a way of having another steady income.

I've tried to move out twice and they've lowered my rent to get me to stay on. They have had bad experiences with tenants before and dont seem to want the hassle.

This way he'd still have this steady income and it would be guaranteed and he wouldnt have the hassle that comes with it. Having tenants means you could be left months with a vacant house plus all the expenses of maintaining the house would be gone.
 
1. Landlord would have a CGT liability but no sales proceeds from which to pay the tax or clear his mortgage.

2. €1,000 in 30 years time won't be worth what €1,000 is worth now so landlord loses out here as well.

This is before you start getting into probable legal quagmires down the line
 
pinkyponk2 said:
See he doesnt really want to be a landlord as such. Just happened to keep his old house as a way of having another steady income.
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Is this not what property investors invest in property for. A steady income and/or future capital gain.
 
DB74 said:
1. Landlord would have a CGT liability but no sales proceeds from which to pay the tax or clear his mortgage.

2. €1,000 in 30 years time won't be worth what €1,000 is worth now so landlord loses out here as well.

This is before you start getting into probable legal quagmires down the line
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Thanks for that DB74 - its information like this that i was seeking.
 
How can you gaurantee to pay rent for 30 years? What happens if you want to move or cannot pay?
 
pinkyponk2 said:
.
...Why would someone not want a guaranteed monthly income for what would probably be the rest of his life?...
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Maybe I'm wrong, but it doesn't add up??

The value of the house is not simply the asset value. Its the asset value, + appreciation (or depreciation) + the rent (x no of years)

You offering only the value of the asset interest free. No rent.
 
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