Acquisition of a prestigious property by its tenants

09.11.2021

A family wished to purchase the property they rented. The house, designed by Marc Corbiau and built in 1973, is located in the exclusive Prince d’Orange district in Uccle. It covers a surface area of almost 700 m² and stands in grounds of around 15 ares (1,500m²).

A prestigious property analysed, valued and negotiated by BuyerSide, real-estate consultant for these French tenants living in Belgium.

From tenants to owners: the advantages and disadvantages

Being the tenant of a property that you wish to purchase is a real advantage, but it does also have a serious disadvantage when it comes to negotiating.

In fact, even if you are more familiar than anyone with the condition of the property, and its advantages and inconveniences, it is however far more difficult to negotiate with the owner. Aware of the tenant’s marked interest in the property, the owner may feel that he is in a position of strength and try to obtain a higher price.

This is why it was wise to call upon an external real-estate consultant who can ensure objectivity and impartiality in the negotiations between the parties. Bringing in an outside negotiator (a middleman) in this particular type of situation usually makes it possible to obtain a better result.

BuyerSide’s assistance for a successful transaction

When BuyerSide analysed the situation, we discovered that there was a non-neutralised fuel oil tank in the building. Despite the fact that the old oil-fired boiler had previously been replaced by a new gas-fired system, the tank had not been neutralised or removed. Moreover, we found asbestos on the lagged pipes of the heating system. A sizeable budget was also drawn up for work that would be necessary in the medium term to bring the property into line with modern tastes, in particular as regards the frames, roof, floors, etc.

These various elements affecting the value were objectivised, allowing a 20% reduction in the price asked by the owner to be negotiated. Using a number of valuation methods, BuyerSide demonstrated that the price offered by the tenants was in line with the current market value for this type of prestigious villa in need of renovation in terms of its appearance but also, above all, from the point of view of energy. To improve the energy performance of the building, the original cavity wall drawn on the plans will make it easy to insulate the walls of the house by insufflation.

For the official deed of sale, BuyerSide succeeded in negotiating the removal of the old fuel oil tank by the seller. This provided an additional cellar ready for immediate use.

The tenant now feels more at home, having become the owner of his property. He can also sleep soundly, knowing that he did not pay “over the odds” for the property and has made a good buy, with an accurate budget for the work to be carried out in the future.

Are you, too, a tenant who would like to buy the property you live in? We will certainly be able to help you, backed up by our experience in such cases! Our next reference could be that of your next real-estate acquisition!

Contact our advisors now!

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