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Completed purchase but can't move in yet
freddiegold
Posts: 16 Forumite
Hi,
This is quite long, sorry.
I recently bought a house (first time buyer) and there has been a big mix up. The previous owners have bought a new house and did a part exchange, so I was buying the house from the housing company. The previous owners completed at the end of June and the next day my solicitor did the exchange and complete for me, so I now own the house.
The problem is that the previous owners were always meant to be staying in the house until mid/late July before moving to their new home. I knew this when I was viewing the house. I was happy with this, but it's something I didn't say to my solicitor (opps). I just thought she would have been told this by the other side.
My solicitor was told by the housing company's solicitors that the property was vacant, which was a mistake on their part. I didn't know they had said this until later. My solicitor told me that it's best we exchange and complete the same day in case of a problem with the mortgage. Being a FTB and being a bit naive, I thought this is fine. It's only when after completion and when she said 'go and pick up your keys', that I realised something isn't right.
I phoned the estate agent and said that we'd completed, and he was in shock. 'How can that be possible?' he said and then got in touch with the housing company. The 'now' previous owners were not due to move until August 1st.
Basically I phoned my solicitor and she was mad, and said she'd issue a writ on them. The house company phoned me direct to apologise and offered to pay the mortgage for July, my current rent, and a bit extra too. They said they'd be sending a cheque. I accepted, although my solicitor was mad that they contacted me directly.
Bascially I was happy to wait until August 1st, but just didn't want to be out of pocket. I obviously don't want to pay over £900 interest only mortgage for somewhere I won't be living. But I certainly didn't want to kick a young family out of their (my) home.
Anyway, it's been over 10 days now and I have not had a cheque in the post. I've spoke with the estate agent twice since to see what's going on, and he's being a bit slow. I'm a bit concerned as there is nothing in writing and I am worried that if it passes August 1st, they may not pay anything and I lose out.
What would you do in my situation?
Freddie
This is quite long, sorry.
I recently bought a house (first time buyer) and there has been a big mix up. The previous owners have bought a new house and did a part exchange, so I was buying the house from the housing company. The previous owners completed at the end of June and the next day my solicitor did the exchange and complete for me, so I now own the house.
The problem is that the previous owners were always meant to be staying in the house until mid/late July before moving to their new home. I knew this when I was viewing the house. I was happy with this, but it's something I didn't say to my solicitor (opps). I just thought she would have been told this by the other side.
My solicitor was told by the housing company's solicitors that the property was vacant, which was a mistake on their part. I didn't know they had said this until later. My solicitor told me that it's best we exchange and complete the same day in case of a problem with the mortgage. Being a FTB and being a bit naive, I thought this is fine. It's only when after completion and when she said 'go and pick up your keys', that I realised something isn't right.
I phoned the estate agent and said that we'd completed, and he was in shock. 'How can that be possible?' he said and then got in touch with the housing company. The 'now' previous owners were not due to move until August 1st.
Basically I phoned my solicitor and she was mad, and said she'd issue a writ on them. The house company phoned me direct to apologise and offered to pay the mortgage for July, my current rent, and a bit extra too. They said they'd be sending a cheque. I accepted, although my solicitor was mad that they contacted me directly.
Bascially I was happy to wait until August 1st, but just didn't want to be out of pocket. I obviously don't want to pay over £900 interest only mortgage for somewhere I won't be living. But I certainly didn't want to kick a young family out of their (my) home.
Anyway, it's been over 10 days now and I have not had a cheque in the post. I've spoke with the estate agent twice since to see what's going on, and he's being a bit slow. I'm a bit concerned as there is nothing in writing and I am worried that if it passes August 1st, they may not pay anything and I lose out.
What would you do in my situation?
Freddie
0
Comments
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Book yourself into the most expensive hotel you can find & make them pay for it.That was my old solicitors advice when i asked what would happen if i completed but they wouldn't move out.0
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Get the keys, wait till all the people in your house are at work/school, and then open up, go inside, change the locks, and leave their belongings on the front door!
I'm all for being nice to young families and that but I'm not nice enough to let it cost me £1000!0 -
There will be something in the contract about charging the vendor (builder/housing company) for daily interest while you can't get access so you should be safe.
You knew all along that you weren't going to be moving in yet and don't seem too bothered, so I disagree with John38 and don't think you should just throw the previous owners out YET!
As you say, you don't want to be out of pocket and that makes sense. Get onto your solicitor and get them to demand a date when the house will be available.
Expect a mortgage payment to come out of your bank account end July/beginning of August despite you not moving in yet.I am a Mortgage Consultant and don't like to be told what I can and can't put in a signature so long as it's legal and truthful.0 -
Hold on now John 38.The law in this country is such an !!! that if you were to do that you would be breaking it.
UKMike I understand what you say but how will you recover these 'luxury costs' if the other side refuse to pay or decide to pay but pay an amount that they consider reasonable.A retired senior partner, in own agency, with 40 years experience in property sales & new build. In latter part of career specialising in commercial - mostly business sales.0 -
Do your mortgage company know that they have lent you money against a home where there are unauthorised occupiers?
The solicitors for the housing association (your vendors) allowed completion without ensuring vacant possession. Big error on their part and they need to sort it.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
All correspondence either verbal or written should go through your solicitor !
No wonder she is angry. She could have saved you from this.
It is now your house :mad:
Your mortgage company will not be best pleased that the previous owners are still resident and effectively 'renting' the property. What happens if their new house is further delayed ?
Also, any insurance you have on the property may be invalid because you are not the resident (most insurances have a 30day non-residence clause). What happens if there is a fire etc. how would explain it to your insurers?
I would insist that they move out. The building company should pay for the removal and storage or their belongings and pay for them to go into a hotel AND you should get some financial compensation too. - ALL THIS SHOULD BE THROUGH YOUR SOLICITOR
You should not be inconvenienced by this c*ck-up.0 -
One_Day_Rodney's suggestion would be the ideal answer I think.
Get the Vendors to pay for accomodation for the tenants. It's not the OPs fault they cokced up!I am a Mortgage Consultant and don't like to be told what I can and can't put in a signature so long as it's legal and truthful.0 -
Hi,
Thanks for the replies.
Yes, I knew I wasn't going to be able to move in right away, and was quite relaxed about that. It was only until I realised that I would be paying a mortgage and not living there that I thought, 'somethings not right'. The only issue was the cost of the mortgage. Yes I was naive about this as I didn't really understand that completion meant I start paying the mortgage. A FTB's oversight. :embarasse
The housing company made a big balls up and did apologise and did ask if I needed somewhere to live until 1st August, and if I wanted I probably could have said put me up in a hotel. But I live with my parents at the moment and would prefer not to do that as I work from home.
They offered to pay the mortgage of £900, the rent I pay to my parents, and a few hundread quid more as an apology. I accepted this. Today my estate agent phoned to say they had sent the cheque. I was getting nervous about that, so will be glad when it gets here.
At no point was I going to turf out a young family. It was not their fault, and to be honest I'd rather lump £900 than do that. I just didn't want to lose money. I guess I could have tried to screw the housing company for more money, but I've done okay from it. Plus the house is mine so it's all good now (once I get the cheque).
Yes, the insurance thing does concern me a bit. So I can't really answer that.
I'm going around tonight to measure up for sofa's (just found out it takes 12 weeks from DFS) and discuss a few things with the couple that live there.
Thanks for your comments.0 -
freddiegold wrote: »Hi,
I didn't really understand that completion meant I start paying the mortgage.
Gah! I know nothing about buying a house but to me this would seem to be a pretty obvious one!
The housing company made a big balls up and did apologise and did ask if I needed somewhere to live until 1st August, and if I wanted I probably could have said put me up in a hotel.
They offered to pay the mortgage of £900, the rent I pay to my parents, and a few hundread quid more as an apology. I accepted this.
Big mistake- the company have admitted liability. You do not have possession of your home for the foreseeable future and are potentially breaking the conditions of your mortgage and insurance's due to their mistakes. A few hundred quid to cover 'inconveniences' hardly goes anyway to cover this- you need £900 worth of legal advice to even begin to understand the situation! You should not have accepted their offer without consulting your solicitor.
At no point was I going to turf out a young family. It was not their fault, and to be honest I'd rather lump £900 than do that.
I agree with the other poster that the housing company needs to find alternative accommodation for the family (ie hotel or a spare property they have!! ) I've no idea about what the legal implications of letting a family have sole occupancy of your house without any kind of formal rental agreement but it doesn't seem like a good idea. They need to get out, but doesn't mean they have to be turfed onto the street.
I just didn't want to lose money. I guess I could have tried to screw the housing company for more money, but I've done okay from it. Plus the house is mine so it's all good now (once I get the cheque).
Should something go wrong with the current arrangement you are going to be considerably out of pocket. £900 is chumps change - the housing company has made a mistake and left you with a massive problem. You do not know when this family will move out - is there house anywhere near completion? You don't even seem bothered that you can't live in your new house that you are paying for - I would be fuming!! This is not fair. You have not done 'ok' from this.
Yes, the insurance thing does concern me a bit. So I can't really answer that.
Talk this over with your solicitor - it should concern you!
I'm going around tonight to measure up for sofa's (just found out it takes 12 weeks from DFS) and discuss a few things with the couple that live there.
This is where it could start to get interesting - be interested to see how the couple that live there take to you coming round to measure up - do they think of it as there house still, are you their landlord?? Maybe take someone with you when you go, like a parent.
Thanks for your comments.
You do seem incredibly naive, have you discussed the situation with your parents or any friends who have also been through the house buying experience. Make sure you keep in contact with your solicitor - they should really handle the offer from the house company.0 -
It's just occurred to me, who are the tenants paying rent to, freddiegold or the Vendor? As any rent would be payable to freddiegold now despite the Vendor saying they will pay him £X !I am a Mortgage Consultant and don't like to be told what I can and can't put in a signature so long as it's legal and truthful.0
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