From owning to renting - how does it work?

Iwani

So my hopes of buying are pretty much in the bin now, as the repo I was buying has accepted a higher offer, and though I'm devastated I can't bring myself to offer above what I think it's worth (taking the high ground feels miserable!).

I have 6 weeks until I'm due to give birth :eek: and refuse to panic buy, and there's next to nothing suitable for my budget anyway. So I'm pretty sure I'm going to give up and rent, quite honestly the hassle of selling/buying has been so stressful I'm almost relieved (almost).

But I'm confused how it all works. I asked about viewing a few rentals today and no one gets back to me, I already see a huge difference in how you're treated as a buyer compared to a tenant! One agent however did say she would advise not signing a rental contract before I exchange on my house, otherwise I could be tied in if it all falls through. This sounds perfectly sensible I suppose, except... am I supposed to be able to just find a house to rent that's suitable and available immediately with the tiny timescale of between exchange and completion?
Is that how it's normally done? I'm getting so stressed now as I just want to view houses and pick one so I know where on earth I'm going to be living in 6 weeks time! Also don't know how it is in other parts of the country but the rental market here is FAST. A house is gone in days.

Obviously people go from buying to renting all the time, so what's the usual way of doing it? The stress of trying to sort this all out is making me ill.

cattie

Are you in a position to pay rent as well as the mortgage on your house before you have found a buyer & completed on the sale?

If not, then your EA is correct, you shouldn't be thinking of finding a rental until you have found a buyer & have exchanged contracts.

Iwani

Not really... I mean, I could as there's about £20k equity coming out of the property sale, I'd rather not use it though.

Oh, in case I wasn't clear - I do have a buyer, they have no chain.

Is it not also risky, to wait until exchange though - could you not end up homeless that way if you don't find a suitable rental?

franklee

You're right the rental market moves fast. On one hand that means you will miss out on properties but on the other hand it's not long before something else comes along.

When I did this I asked for a reasonable gap between exchange and completion, enough to book removals etc. I found a property to rent, put a holding deposit down and then signed the tenancy agreement after exchange.

I also viewed some local storage places to have a backup plan if it all went wrong.

If you are putting down a holding deposit get in writing exactly what it's for and under what circumstances you lose the deposit. In my case it was to hold the property for me for a couple of weeks to allow exchange. If I pulled out I lose the deposit. If I went ahead the deposit went toward the first months rent. Luckily the letting agent my first landlord used was a good one.

caeler

I moved into rented after my house sale, I found somewhere that wasn't very nice and wasn't letting easily, got the LL to agree to rent it to me but I explained I would only sign a tenancy once I had exchanged, amazingly he was fine with that, he had to wait 6 weeks and I paid no holding fee. I think I was fortunate but my LA did actually help (he happened to be selling my house and letting the property I moved into, win win for both of us!).

Please don't sign a tenancy without exchanging, otherwise you will be left with a minimum of 6 months rent as well as a mortgage to pay.

Iwani

Thanks for the advice. What exactly is a holding deposit - could I suggest it as an alternative to signing a tenancy before exchange? Rental houses in the decent areas here seem to be gone the second they're on Rightmove or sooner and so I doubt I'm going to have much/any bargaining power really, if I was the LA I'd probably just give it someone less complicated!

caeler

I have limited experience with renting but I have heard of holding deposits being used to secure a tenancy until you are ready to sign. Maybe search the forum and see what comes up?

Looby_Lou

Can you not ask for a longer gap between exchange and completion? We are in a similar situation and we are asking for a month between exchange and completion to allow us to find a house and schooling.

sooz

With only 6 weeks til the baby, & chain free buyers, & no house for you, I'd be asking for a compassionate 2 months between exchange & completion. Enough time to have the baby's without stressing & moving hospitals. And to find a new & nice rental.

Ask, you never know.

sooz

Looby_Lou wrote: »

Can you not ask for a longer gap between exchange and completion? We are in a similar situation and we are asking for a month between exchange and completion to allow us to find a house and schooling.

We had a month, even though we'd moved out, still needed to organise storage for stuff that wouldn't fit. And with young chikdren, we had little time to pack, arrange removals & storage, clean etc. our buyers were absolutely fine with 1 month. With a baby actually due, I can't see why longer wouldn't be possible.

boo2410

We sold and didn't have anything lined up (the place we are currently renting we saw on the internet) as we were moving to a different part of the country. We insisted on 4 weeks between exchange and completion as I needed to give notice at work and had to get a school for our son. With 2 weeks to go we found somewhere on Rightmove and luckily my sister was able to look at it and put a holding deposit down. It was all very stressful and I wouldn't want to do that again if I could help it but it turned out ok, thank heavens. And saved us moving back in with parents as a temporary measure (that really would have made OH's day :rotfl::rotfl::rotfl:).

Good luck, it will all turn out ok I'm sure.