Should I allow my "buyers" to rent my house from me until my mortgage is approved?

firstaspect

I'd just sit tight and tell them no. If they come back with a mortgage agreed then great but until then you'll have to keep looking for a buyer I'm afraid.

penguingirl

I have a friend who rented to her 'buyer' for over a year due to him waiting for his house to sell (also rented out). She gave up recently as he didn't seem in any rush to buy it from her and put it on the market again. He then became the tenant from hell and eventually handed in his notice. He told her he was going to tidy for the EA pics and what he actually did was put all his stuff in his bedroom on his bed and put the duvet over (in the style of a 10 year old)- the pics were hilarious. She's now going to move back in herself and try and market it properly!

moneypuddle

Thanks all. I was worried it would be a minefield and it seems it would x

poppysarah

And if they dn't sort the overdraft out, don't pay you rent, and trash the house - what happens then?

Reduce the price if you want to sell quicker?

Badger_Lady

It sounds to me like the Estate Agent is desperately trying to get their commission before you leave.

They may well have spoken to the buyers saying "the owners really want to sell to you - would you consider renting from them?", then turned the same line back to you. You have no guarantee whatsoever that the buyers really are keen or that they will get a mortgage approved at the end of term.

In fact, if they were really that keen, I find it surprising that they didn't manage to find a mortgage from somewhere straight away... after all, each provider has different rules. I know they've tightened up since my day but surely some underwriter somewhere would give an exception to their circumstances..?

bitsandpieces

Badger_Lady wrote: »

In fact, if they were really that keen, I find it surprising that they didn't manage to find a mortgage from somewhere straight away... after all, each provider has different rules. I know they've tightened up since my day but surely some underwriter somewhere would give an exception to their circumstances..?

Unless their credit record is really bad (to the extent that other providers would either refuse them or be unaffordable). Which would make renting to them even higher-risk.

No reason they can't buy if the place is still on the market if or when they can get a mortgage.

neverdespairgirl

Sounds like serious trouble to me.

neverdespairgirl

penguingirl wrote: »

what he actually did was put all his stuff in his bedroom on his bed and put the duvet over (in the style of a 10 year old)- the pics were hilarious.

My Mama saw through that "tidying" technique when I was about 10, so I've not tried it again since (-:

Pigster_2

You've identified most of the main risks in your original post. Personally, I would not agree to rent to them.

Also, if they are in overdraft at the moment, do they actually have the funds for any equity input (presumably they will not be getting a 100% mortgage)?

Hope you manage to find another buyer quickly.

mostlycheerful

maninthestreet : “An assured shorthold tenancy can't be for less than 6 months, unless I'm mistaken.”

3.2 What is a Periodic Tenancy?
A Periodic Tenancy is a tenancy that is automatically renewed each "period" (normally each month) until either the Tenant or the Landlord does something to end it. Periodic tenancies are usually one of the following:

Statutory Periodic Tenancies
These tenancies usually come about when the fixed terms of Assured and Assured Shorthold tenancies come to an end but the Tenant stays on ("holds over") with the Landlord's consent. The terms of the tenancy remain the same. In the case of a periodic tenancy following on from an Assured Shorthold Tenancy the Landlord and the Tenant both have the additional right to end the tenancy by giving the required amount of notice

Contractual Periodic Tenancies
These tenancies usually come about when an Assured or Assured Shorthold tenancy is created with no initial fixed term. The tenancy runs on indefinitely until either the Landlord or the Tenant gives the required notice to the other (the Landlord can only end the tenancy in the first 6 months if he has grounds to do so.)

http://www.simplyrent.co.uk/tntfaq.htm