Should we rent from the Prospective Vendor?

DVardysShadow

Doozergirl wrote: »

... I suspect there is an early redemption penalty. It's obviously worth asking exactly why they want this scenariobut mostwould have a valid reason. Don't exchange contracts until the time that he is ready to complete and the risk is that

The idea that it's a sneaky way of getting tenants is obscene. There are more renters out there who are more easy to please than buyers, plus if your tenants actually want to buy then they will move on very quickly. People either want to rent or buy - if he tricks a buyer into renting then they willbe moving on very quickly - notthe ideal tenants!

An early redemption penalty is certainly possible. But if this is the case, why not sign a contract now for completion after the penalty period expires?

When you say that the idea of the sneaky way of getting tenants is obscene, it isn't clear whether it is obscene to suggest this may be the case or obscene to do it. Certainly, it raises problem over the tenants and attitudes he is likely to get. On the other hand, it does give the seller a 2 way bet on house prices - if they fall, he has tenants in place who could buy - if they rise, he can turf them out and sell to someone else. It is not totally rational, but then people are not always rational and they will fixate on stamp duty or early redemption penalties at much bigger expense on things they don't think about.

leedshatter

thanks everyone. The early redemption figure is £5k and would be paid if he moves before the end of June. He marketed his house in January and we made an offer in late Feb after securing a 1st time buyer for ours. Some of you mentioned about the risk and the advice of solicitors which has been expressed.

in this market, keeping your buyer is important, but at what cost? The collective experience of you all is far better than those who practice but never put it into place :T

DVardysShadow

leedshatter wrote: »

thanks everyone. The early redemption figure is £5k and would be paid if he moves before the end of June. He marketed his house in January and we made an offer in late Feb after securing a 1st time buyer for ours. Some of you mentioned about the risk and the advice of solicitors which has been expressed.

in this market, keeping your buyer is important, but at what cost? The collective experience of you all is far better than those who practice but never put it into place :T

Maintain your current offer for completion within 6 weeks, but drop it by 5k for completion before end of June and 10k for completion after end of June.

Ulfar

I think your vendor needs to check with his bank normally mortgages are portable as long as the time between sale and completion isn't more than 6 months.

Also usually the closer you are to the end of the fixed term the less the penalty is anyway.

If their mortgage isn't portable I wouldn't be renting from them I would stay were you are and exchange with completion set for after the fixed term expires.