PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Giving notice when buying

Hello!

Apologies if this has come up before, I searched and couln't find anything specific to my situation.

I'm planning on buying a house in the next few months but have an issue with giving notice on my rental property. I've been told I should only give notice when the exchange of contracts has happened, however, my notice period in 2 months. Does that mean that I will need to pay over a month's mortgage payment and rent? I've heard it only takes around 2 weeks from exchange to completion.

Thanks in advance!

Comments

  • jozbo
    jozbo Posts: 334 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    We're in the same boat, some way into a flat purchase, hoping to get an exchange date in the next few weeks. Our notice period is also 2 months. As the mortgage lender required a reference from our landlord, we had to let them know that we were buying something - which I wasn't comfortable about - however now I'm wondering if she may be generous and let us leave in a month's notice. Suspect they'll need to do some work to the place before finding new tenants and upping the rent (we've been here 4 years at a low price, and area has come up a lot in that time).

    As for exchange to completion, I've heard it's more likely to be 5 days although this is negotiable.
  • N79
    N79 Posts: 2,615 Forumite
    Assuming English law:

    Are you in a fixed period of your tenancy (in which case I assume you have a 2 month break clause) or are you on a month by month tenancy (in which case, irrespective of the term in your contract, you can give one months notice to end on the last day of a rental period)?

    The time between exchange and completion is fully negotiable between buyer and seller (although with mortgages involved it is unlikely to be longer than 2 months).
  • lul_2
    lul_2 Posts: 5 Forumite
    I'm in a fixed 2 year tenancy with a 2 month's notice break clause. I've only been in the property since December.
  • N79
    N79 Posts: 2,615 Forumite
    In which case you must give 2 months notice. You could try to extend the period between exchange and completion a bit , you could take a risk and give notice before exchanging or you could pay the rent a mortgage overlap for security.
  • lul wrote: »
    I'm in a fixed 2 year tenancy with a 2 month break clause. I've only been in the property since December.



    You probably need to check your Agreement to see whether you can use the break clause at any time, which would be unusual, or at a specific time (e.g. at 1 year) or maybe after the first year. Worth checking. It would be odd to have a break clause which allowed the tenant to leave after, say, 1 month (I know this isn't relative in your case, but I'm just pointing out why a completely open break clause during a fixed term would be unusual).
  • jntm
    jntm Posts: 22 Forumite
    Until you exchange contracts either party could just walk away - so do not serve notice until you have exchanged. Worst case scenario is that you could serve notice before exchanging, the seller changes their mind / sells to someone else and you end up homeless.

    On a practical note, it is worth having a friendly word with your landlord and letting them know the situation - although the lease strictly provides for 2 months they might agree to a shorter term, if you are upfront with them.

    Good luck!
  • lul_2
    lul_2 Posts: 5 Forumite
    I think I'll take the hit and pay both for security. Hopefully I can negotiate a shorter notice period with the landlord. Thanks for all your help!
  • We're in the same situation, although we only need to give one months' notice... so we should be giving our notice before 13th August to end contract on 13th September, but (fingers crossed) moving on 8th August!

    I'd be tempted to ask for longer between exchange and completion to avoid paying both mortgage and rent for the same time period, but I just want to be out of here now... especially since mid-September is in the middle of my exams!
    You were only killing time and it'll kill you right back
  • GDB2222
    GDB2222 Posts: 26,344 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    You probably need to check your Agreement to see whether you can use the break clause at any time, which would be unusual, or at a specific time (e.g. at 1 year) or maybe after the first year. Worth checking. It would be odd to have a break clause which allowed the tenant to leave after, say, 1 month (I know this isn't relative in your case, but I'm just pointing out why a completely open break clause during a fixed term would be unusual).

    I'll just second this.
    No reliance should be placed on the above! Absolutely none, do you hear?
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.4K Banking & Borrowing
  • 253.3K Reduce Debt & Boost Income
  • 453.8K Spending & Discounts
  • 244.4K Work, Benefits & Business
  • 599.7K Mortgages, Homes & Bills
  • 177.1K Life & Family
  • 258K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.