Offer letter on a property - what to write ?
Discussion
Hi all,
My friend wants to buy the freehold to a property he currently rents from his landlord.
What do you need to write in the letter ?
The property is not on any estate agent's books, his landlord just told him if he was interested to write a formal letter to him.
He would like to offer his landlord £300,000 for the property.
Cheers
R
My friend wants to buy the freehold to a property he currently rents from his landlord.
What do you need to write in the letter ?
The property is not on any estate agent's books, his landlord just told him if he was interested to write a formal letter to him.
He would like to offer his landlord £300,000 for the property.
Cheers
R
...and then bid him in the balls, you never know how far you can get with a cheeky offer especially if you've done research and they are strapped 
and, you can always raise the bid in negotiations if they recoil at your starting point...this does not apply if you would like any sort of cordial relations with the fellow in the future
and, you can always raise the bid in negotiations if they recoil at your starting point...this does not apply if you would like any sort of cordial relations with the fellow in the future
minimax said:
...and then bid him in the balls, you never know how far you can get with a cheeky offer especially if you've done research and they are strapped
and, you can always raise the bid in negotiations if they recoil at your starting point...this does not apply if you would like any sort of cordial relations with the fellow in the future
and, you can always raise the bid in negotiations if they recoil at your starting point...this does not apply if you would like any sort of cordial relations with the fellow in the future
Agreed.
This situation all comes down to whether he wants to sell or not as so whether he is loking for plus or minus 10% or more of the market value.
Jamesuk28 is right too. Formal letters should be subject to contract.
Buying property, land and shares have an exemption from contract law in that I can offer anything else I own verbally to anyone in the street to accept or indeed I can accept anyone's offer for anything I own verbally and at the point of acceptance, which could be verbal too, a contract is formed.
In this scenario, this is the reason he wants an offer in writing. It may be the most diplomatic thing too as if negotiations break down, the exchance of correspondance is more 'faceless'.
If you make an offer SUBJECT TO CONTRACT however, this is basically just confirming your interest and does not tie you down to even what you have written.
The more info you put into an offer letter, the more credible it will be. Make it subject to contract, survey and measurement. Define what is is you are making an offer on eg the office building comprising X000 sq ft known as 123 Acacia Avenue, specify the tenure ie your offer is to buy the freeehold interest, the consideration ie the amount you are offering, your solicitor's details and how you intend to fund the purchase, timing ie completion to take place by such and such a date. Also add in any other conditions that might apply, such as being subject to board approval, making a planning application for change of use etc if there is anything else that is applicable.
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