Landlords are discovering that tenants already living in their properties can be potential buyers. This approach has enabled some landlords to sell a significant portion of their property portfolios over the last eleven years.
The process often involves showing tenants how buying their current home could be achievable. Many tenants' financial situations may have changed since they moved in, with increased earnings potentially making a mortgage affordable.
Landlords can initiate conversations by informing tenants of plans to sell and offering help to explore ownership figures. In some cases, monthly mortgage payments have been around £100 or £200 more than the rent previously paid.
To facilitate sales, landlords may offer contributions towards purchase costs like valuation fees or Stamp Duty Land Tax, or agree to a rebate of rent already paid. Mortgage brokers can help tenants understand repayment options, costs, and available borrowing routes, including those for small deposits or up to 100% borrowing for eligible renters.