Vendor wants to rent back for 6 weeks

stoker48

Vendor wants to move out in November as she is having house built abroad.

We are buying the property without a mortgage so are sort of flexible on dates though would have preferred sooner.
Will soon be at a point of exchange. She has now asked if we can exchange and complete asap as she could use the money from the house sale to finance the next stage of the building work on her new house.

She has suggested that she could rent the house back off us until mid November when she is moving back abroad. I expect this will for about about 6 weeks

Whilst more than happy to be helpful, I would be grateful for any advice. I will, of course, run it through my solicitor tomorrow but has anyone out there done similar and how did it work out?

Thanks in advance:p

Gwhiz

What if she refuses to leave in November? I'd stay clear of this personally!

BitterAndTwisted

It's my understanding that an Assured Shorthold Tenancy agreement can't be for less than six months, so if she won't move out after the six weeks you won't be able to legally evict her earlier. I'd steer well clear as well.

clutton_2

since early summer this year there have been strict controls on Sale And Rent Back SARB sales... you cannot do this if you are not registerd with the FSA

this is your very best reason for saying no - politely - either say "no" or extend the completion date..

i would say no - politely and move in

Errata

Why can't she move out and rent ? What if the builder does a runner with her money ? What if she's taken ill and unable to move anywhere ?
Too many ifs and buts.

Ulfar

If your buying with a mortgage the answer is no as it will be subject to Vacant possession.

There are lots of other reasons to say no some of them have already been touched upon.

RabbitMad

I'd be inclined to be business like about this:

Cons: She refuses to move after 6 weeks - you can't apply to the courts to get her out until she's been their six months (an AST can be for any length however)- solution charge a high enough rent to make her want to move after 6 weeks / make it a holiday let though this might be difficult.
Cons: She stops paying the rent - You've just paid £x pounds for the property - get at least 6 months of the sky high rent retained by the sols in escrow
Cons: Buy and rent back now covered by FSA - not for single private deals according to a recent poster who contacted FSA and as it is not the nature of your business then this is not covered by the FSA (get your own confirmation of this though rather than relying on hear say as I am)
Cons: A lot of hassle for you potentially - make sure the risk / reward ratio is something you can accept.

tbs624

Don't do it. Your solicitor will tell you the same. She wants to have her cake and eat it. If she wants the money asap tell her she sells and moves out. If she needs a flat let her try getting a holiday let elsewhere. Sounds harsh but it affords you the best protection.

neverdespairgirl

I agree - she has the house, or she has the money for it. Not both at once!

richardvc

No, no & no !

marmitequeen

I think you have an answer loud and clear!
good luck - keep strong about this one! (by saying no!)
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