tenant offered opportunity to buy house

A

AIDAN MORONE

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my brother and his partner have been renting a three bed semi from their landlord for the past two years,paying 1000 euro every month,on time with never a problem.
last week the landlord asked them would they be interested in buying the house off him,he told them they were excellent tenants and said if they wanted to buy the house off him, he would sell it,otherwise the house was not for sale.
would it be an option for the tenants to ask the landlord to ask his bank to give him a top up mortgage to the value of the sale price and then transfer the mortgage into the tenants name,provided they met the criteria,or is this an off the wall idea???????????
 
Sounds like an off the wall idea to me. What is the point? And how does this dovetail with the actual transfer of the beneficial ownership of the property anyway (i.e. the conveyancing etc.)? Why don't they just buy the property as normal if they are interested in it?
 
"would it be an option for the tenants to ask the landlord to ask his bank to give him a top up mortgage to the value of the sale price and then transfer the mortgage into the tenants name,provided they met the criteria,or is this an off the wall idea???????????"

As Clubman says, why?

Can you explain where this idea came from - someone presumably thought there was some merit in this and so either we're missing something or there is some merit in the idea.

mf
 
Can a mortgage be 'assigned' in this manner?

Perhaps the tenants would not get the necessary approval if they went to get the mortgage themselves and that is what is underlying the line of thinking?

Let's not jump to conclusions before we hear more, eh?
 
Surely its not possible to 'gift' a mortgage?! Would it not be the case that all outstanding mortgage would have to be cleared before there can be transfer of legal title?
This would surely mean that the tenants would have to have their own mortgage in place so that they could become legal owners?
 
to answer some of the questions,the whole idea of this is the fact that this would be an easier option for the buyers,they do not have the option of a deposit,its so very hard to raise a deposit and try and live also,not everyone is lucky enough to be earning a huge salary,although they would be in a position to pay their mortgage,they wouldn't qualify for 100% mortgage if they were to go through the proper chanels.
in answer to the stamp duty question,this will not come into play as the both parties are first time buyers.
from the sellers point of view,i do understand that he will not have the hassle of trying to sell his house,in turn he will save on huge estate agents fee's
just to add,i did only ask peoples opinions on this
 
If they cannot afford a deposit and make up the balance with a less than 100% mortgage or cannot get a 100% mortgage then surely they simply cannot afford to buy the property? I don't see how the existing owner transferring the mortgage (even if this was possible) would make any difference as they would surely still need to pay the seller the difference between the outstanding mortgage and the property selling price? Still makes no sense to me to be honest - especially this bit:
from the sellers point of view,i do understand that he will not have the hassle of trying to sell his house,
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You mean he would be just transferring the mortgage and not actually selling the house or what? Confusing...
 
If they can afford the repayments then they should find a good broker and let him try and find them the product they need. Mortgage arrangements should be kept straightforward, the arrangement that the OP is trying to explain does seem overly complicated and not very attractive to the landlord I would assume. The 'huge' EA fees might be worth it to him for peace of mind
TBH it would seem strange that the landlord is willing to sell only to them when they sound like dream tenants, I could envisage that if they don't take up his offer, the house will go on the market.
 
some of you seem to be getting a bit lost here,the house is say valued at 350000,the landlord stills owes 250000,this means there is a difference of 100000 in equity,i think that's what this is called.
next,the lanlord remortgages to get this 100000,he then owes the bank 350000,this is the value of the house.
the both parties approach the bank and the solicitors as normal and explain the case and then,
"the seller doesn't have the hassle of putting his house on the market in the hope that it might sell a few months down the line with the slowdown in the market,the landlord has heard that the teneants want to buy "a" house,he is happy to be having the tenants pay his mortgage by continuing to rent his house,but as i have said,they have been good tenants and he would like to help them out,not everyone in ireland is out to do someone a bad turn,believe it or not
 
Doubt that this will work and that a mortgage can be reassigned in this way as part of the transfer of ownership. If the prospective buyers can afford to service the loan required to buy the property then they can just do it the normal way (i.e. get mortgage approval in preparation for buying) and the seller doesn't have to put it on the market since he already has a buyer. Both parties will certainly have to pay legal fees for the transfer of ownership as this is basically unavoidable in any legitimate conveyancing operation. An estate agent and associated costs would not be necessary in such a sale.
 
The buyers still have to qualify for a mortgage of €350,000 (100%). Based on what you have said, they won't. So no deal.
 
The mortgage is in the current owners name and therefore the title deeds will remain in his name also. If the current owner wants to sell the property he will have to transfer the title deeds to the tenants and in doing so he will have to redeem his existing mortgage. As Ccovich has pointed the tenants have to qualify in their own right for the new mortgage.

Meanwhile the current owner takes a top up of 100K and the current tenants pay a higher rent to cover the increased mortgage repayments. I understand where you are coming from but I can't see how either party will benefit from this - increased borrowings and increased repayments. The tenants will not own the property as the current owner will not have sold it.
 
surely in this day and age,solicitors are able to overcome hurdles like this,is this not why we pay them huge fee's also
 
AIDAN MORONE said:
surely in this day and age,solicitors are able to overcome hurdles like this,is this not why we pay them huge fee's also
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the landlord can sell the house to the renters without paying an estate agent...


the tenants need to get mortgage approval , make an offer to the landlord ... if he is happy then both go off and get solicitors and work in from there...
 
AIDAN MORONE said:
surely in this day and age,solicitors are able to overcome hurdles like this,is this not why we pay them huge fee's also
Click to expand...
What hurdle? The lender is unlikely to reassign an existing mortgage especially if the people who want to take it on would not otherwise be approved for 100%. If you still think that this is a runner then you should suggest to your friends that they consult with the seller, his lender and their respective solicitors. I am pretty certain that the sort of scenario that you are outlining is simply not feasible and would not be even if the prospective buyers were in a position to get a 100% mortgage for this property.
 
AIDAN MORONE said:
surely in this day and age,solicitors are able to overcome hurdles like this,is this not why we pay them huge fee's also
Click to expand...

What has it got to do with solicitors? The bank is the key player here.

For a solicitor to come up with a new strategy for raising a mortgage as described above, I would imagine that you would have to pay them 'huge fees' and not their typical conveyancing fees. Even then I doubt they would be successful.
 
If the landlord re-mortgages to €350,000 then its still the bank that owns the house. They would have to approve of a new owner as its the bank that would be taking the risk. The solicitor gets paid fees for numerous reasons, but even superman could not entice a bank to assign a mortgage to a borrower who on the face of it cannot pay back the loan. Is the only reason they can't get a mortgage because they can't raise a deposit, if this is the case consult a broker. You are looking for a 'back door' mortgage and I don't think it exists.
 
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