Sellers want to stay in the house up to 6 week after completion...

ScarletFox2012

Hi,

we are first time buyers and in the middle of the buying process, having found the house we want to buy. The sellers of this house have asked us if they can stay in the house up to six weeks after the completion date as the house they are buying requires a lot of work doing before they move in. They have offered to pay our mortgage for the time they are there and get a tenancy agreement setup for the time they are there. As naive FTB's we initially said yes but after dropping this into the conversation with our solicitors today, they said that it would change everything and that they would need to get an agreement with our mortgage lender as we were not on a buy to let mortgage... she just said not to do it.

I've mentioned this to the seller today and she said that it would affect their ability to buy their house if they didnt get the work done. We have agreed to discuss this again tomorrow as she will have the final details from her builders on the work that needs doing... she also said that these arrangements are in the form of a "gentlemans agreement" and it would be based on trust...but this screams red flag to me but I wanted to reach out to the wider community to see what you thought...

My instincts say no, we want to move in on completion date but I get the impression this will affect our house purchase and the seller will pull out...HELP!

Please could you give me some advice on this.

Many Thanks
SF

sirmosh

You can't do it, your lender will want a vacant possession and you can't have them as tennants as the lender would not agree to you letting the property out on a residential mortgage the second you buy it.

If you let them stay there without a legal agreement they could refuse to leave and it'll be very difficult to get rid of them.

Too many things can go wrong and you'd have to do it behind your lenders back.

richardw

Nobody else will agree to this, so they may be living in cloud cuckoo land.

They need to get bridging finance in place if they want to own two properties for a short period of time, or rent elsewhere, or a caravan in their new properties garden.

lincroft1710

ScarletFox2012 wrote: »

The sellers of this house have asked us if they can stay in the house up to six weeks after the completion date as the house they are buying requires a lot of work doing before they move in.

An easy one to answer.

Under no circumstances allow them to remain in the house after completion. Let them source their own temporary accommodation. Besides your lender won't agree to this and your solicitor/conveyancer has quite rightly advised against this.

newbutold

ScarletFox2012 wrote: »

Hi,



My instincts say no, we want to move in on completion date but I get the impression this will affect our house purchase and the seller will pull out...HELP!

Please could you give me some advice on this.

Many Thanks
SF

Your instincts are spot on!

Say no and if they pull out so be it, however if they are serious about wanting to sell and move they are highly unlikely to find another buyer willing to do what they are asking you as naive first time buyers to do.

tbs624

ScarletFox2012 wrote: »

My instincts say no, we want to move in on completion date but I get the impression this will affect our house purchase and the seller will pull out...HELP!

As the others have said, the answer from you has to be a firm "no", as also advised by your solicitor. Presumably you have still to exchange on this property? What is your own accomodation situation - would you be in a position to perhaps agree a longer period between exchange and completion?

ScarletFox2012

Hi tbs624

We are renting and have yet to give notice on our house. We havent exchanged yet, this is due to occur in two weeks time. I think the longer period between exchange and completion would be our bargaining tool but I suspect I will be told by the seller that they need to complete to buy their house and start the work...

Based on yours and the other communities feedback - I am going back to the Agent to tell them no to this arrangement... I am already stressed just thinking about it and actually the only people who would benefit in the end would be our sellers...

thanks again guys

Owain_Moneysaver

ScarletFox2012 wrote: »

this will affect our house purchase and the seller will pull out...HELP!

And the sellers are really going to find another buyer in 6 weeks time ... a first time buyer with finance in place and no chain ...

And those building works are really only going to take 6 weeks honest, no chance whatsoever of them running on for 6 months ...

If they want to stay in the house longer then you can renegotiate the completion/entry date accordingly, but you also renegotiate the offer price downwards to take into account the rent and other costs you are paying in the meantime.

They sound like the sort of people who will take the lightbulbs with them when they move out ...

hazyjo

You would also be LLs and be legally bound to act as LLs. That means repairs, maintenance, gas certificate, buildings insurance, deposit protection scheme, etc and, as said, you'd not get a mortgage in the first place for it.

I'd not really want that long a gap between exchange and completion (your mortgage offer would probably expire, most are valid for 3 or 6 months).

I think you've made your decision anyway, but just giving you a bit more ammunition. Can't believe the EAs know about this - honestly, some of them will just say anything to sell a bloomin' house!

Good luck.

Jx

pimento

The way to word this with your vendor is "We really wanted to do it but our mortgage company won't let us.." that way they won't think you've just changed your mind.

ScarletFox2012

yeah the Estate Agent offered to draw up the temporary tenancy agreement and have told me this is a pretty common scenario... clearly not... thanks!