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  • FIRST POST
    • Hanko2983
    • By Hanko2983 3rd Jan 18, 9:58 AM
    • 10Posts
    • 0Thanks
    Hanko2983
    Difficult situation
    • #1
    • 3rd Jan 18, 9:58 AM
    Difficult situation 3rd Jan 18 at 9:58 AM
    Hello all,

    I have a question that I'm struggling with.

    My wife and I rent from my mother in law who will be selling the house to gift us £100,000 to help with a deposit for our first house. I also will be inheriting £30,000 from the sale of my grandparents house.

    We plan to use this £130,000 as our deposit.

    My question is how would this work during the process as I've read we would need to pay 10% deposit of the value of the property to secure the property we would intend to buy at the contract stage. Would it still work as a chain even though we don't own the property? Or would we essentially be "homeless" for a short period until we receive the funds from my mother in law from the sale of her property?

    If so, I guess we could use the £30,000 from my inheritance towards the 10% deposit required.

    I hope that makes sense? I couldn't stop thinking about it last night and wouldn't want to get all the way to completion for it to collapse at the final hurdle.

    Cheers
Page 2
    • Voyager2002
    • By Voyager2002 6th Jan 18, 10:30 PM
    • 11,810 Posts
    • 8,003 Thanks
    Voyager2002
    Why don't you see a solicitor? As others have posted, in your situation there is rather a lot that could go wrong...
    • teddysmum
    • By teddysmum 7th Jan 18, 12:04 AM
    • 8,715 Posts
    • 5,163 Thanks
    teddysmum
    'Moving on the same day' as whom?


    The owner won't get her money until the house you are in is sold; the sale requiring that you have moved out.


    You won't be able to move to the new property until its sale is completed,but to do that you will need the money from the house you will have had to leave, so what will you do meanwhile?


    Also, a seller is very unlikely to seriously consider you as a buyer,unless you can show that you are able to proceed .
    • davidmcn
    • By davidmcn 7th Jan 18, 12:13 AM
    • 6,520 Posts
    • 6,419 Thanks
    davidmcn
    The owner won't get her money until the house you are in is sold; the sale requiring that you have moved out.

    You won't be able to move to the new property until its sale is completed,but to do that you will need the money from the house you will have had to leave
    Originally posted by teddysmum
    Aren't you just describing a chain here?
    • HouseBuyer77
    • By HouseBuyer77 7th Jan 18, 8:37 AM
    • 913 Posts
    • 899 Thanks
    HouseBuyer77
    Estate agents we have spoken to have all said it wouldn't be a problem but just wanted to check to see if anybody on here would be familiar with this type of scenario?
    As others have said you staying in the current property up to the day of completion may be problematic. You are a tenant and ordinarily for a tenanted property vacant possession (i.e. You move out) on exchange is asked for. In particular it may be a requirement for the lender of whoever is purchasing. Maybe exchange and completion on the same day gets around this but others in the chain may not want to do that.
    • davidmcn
    • By davidmcn 7th Jan 18, 10:12 AM
    • 6,520 Posts
    • 6,419 Thanks
    davidmcn
    You are a tenant and ordinarily for a tenanted property vacant possession (i.e. You move out) on exchange is asked for. In particular it may be a requirement for the lender of whoever is purchasing.
    Originally posted by HouseBuyer77
    Lenders don't dictate what the position must be at exchange - they're not a party to the contract. They only care what happens at completion - and, like the buyer, they'll want vacant possession. But that's an obligation of the vendor anyway, so the vendor will do their damnedest to make sure that vacant possession happens.

    It seems to me that only a particularly paranoid buyer would want the property to be vacant at exchange in the circumstances we have here - and I don't see how delaying exchange helps! As I said above, may be more of a concern if the tenants were unrelated third parties who might not have somewhere to move to.
    Last edited by davidmcn; 07-01-2018 at 10:32 AM.
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