I opened up a LISA beginning this year and can touch it in late March 2022. I'll have probably have about £9,500 in my LISA at that point. My current wage is £19,737 but again in late March it'll increase to £21,142.
I've been renting our flat for £550 / month for the last 4 years. My landlord has on a couple of occasions suggested I buy the flat off him.
I really want a house but the market has gone up and on my wage I'm not looking at lenders giving me a big mortgage. When I asked how much he'd sell it for through an agent he probably said about £105,000. He purchased it for £70,000 back in 2016.
What I'm hoping for some advice on is; would it be stupid to buy the flat off him? Originally I was against the idea as I want bigger but unless moving out of the area or properties dropping in price it's not going to happen. Not on my income anyway.
I was hoping to buy a fix me up at a lower price but even those types of properties are selling for about £130,000 in our area.
Would a landlord potentially be willing to lower the price slightly for a long standing tenant? I've paid £26,400 in rent in 4 years. Don't know if that's a thing as I've never been in this situation.
Next question which is where I'm wondering if I'm being stupid or not. If I was to buy the flat off him and updated some things - to hopefully increase the value. Would it be a pain to resell later on? My thinking behind this was to build up equity to buy a house at a higher price tag down the line.
Is it better to get on the ladder with something other than nothing? He wants to sell this place regardless but knows I want to buy and is holding off until I'm ready to leave (if I do). He's just asked for a few months notice so he can start the process. If he does sell and I can't buy a house I'll be back to renting except rent has gone up in our area to about £650 just for a two bedroom flat which I'll struggle to afford.
I haven't discussed my potential interest in buying with him yet as I'm just still trying to weigh it all out. I did mention around April time next year to him though.
Thank you in advance for any advice you can give me! With me never purchasing before I just don't know what the best option is or what to do.