Short term tenancy whilst selling our house

pixiepie99

Hi all,

We've just bought a new house and have our old house on the market. We're tied into a mortgage deal which means that we can't complete on the sale until the start of November. We've found someone who needs somewhere for just September and October which seems ideal. We've offered her a very good rate which will cover our mortgage but means she's paying around nearly half what she'd expect to pay. She's coming to see the house on Friday.

We're going to go "under the radar" in terms of consent to let, tenancy agreements etc but I'd welcome advice in terms of what to do in terms of deposit, rent etc, e.g. I'm thinking of just asking for the two months rent up front. Should I ask for a deposit as well?

Thanks in advance

arbrighton

well, I wouldn't want to buy a house with a tenant living in it, especially if there was no agreement (which would make them very difficult to evict btw).
As a potential tenant of yours, I'd be concerned that if you were willing to go 'under the radar' with your lender, you wouldn't be taking care of your obligations legally such as a gas safety certificate etc. If you're going to ask for a deposit, are you going to bother to protect it as you are legally required? if not, again, you won't have a leg to stand on in terms of serving notice to get your tenant to leave when you want them to, to get the vacant possession that will be required for completion of any sale.

Kynthia

You canlet a property for 2 months but if she doesn't leave at the end you will not be able to evict legally until 6 months. That would mean that you couldn't offer vacant possession to your buyer and therefore couldn't complete on the sale. Sounds too risky to me.

Werdnal

You will not get much in the way of advice from anyone here to encourage you trying to dodge your responsibilities and obligations of being a LL.

So you have found someone to rent for a couple of months - you do realise that if they refuse to move out after that time, you cannot legally apply for a court eviction until 6 months after they move in?!?!? You also realise that you are likely to get short shrift if you even apply to evict them if you have not done everything by the book in the first instance!

PLEASE DO NOT DO THIS!

You will need a gas safety certificate, mortgage consent (don't risk winding up your mortgage company by not asking their consent), your insurance will be void, you have to register the deposit in a government scheme, you have to declare the income for tax - regardless of how much of that rent goes toward your mortgage, you will have to declare the income.

Do you really want to risk your home and potential sale by getting a couple months dodgy rent "under the radar" - DO NOT DO IT!!!!!!

DannyboyMidlands

Sounds like and accident waiting to happen.

This tenant could quite easily live there for 6 months paying half the going rate and you might have a nightmare trying to evict them.

G_M

Mad!

The buyer will not want to buy if you have a tenant in situ (who may not leave) and the tenant may decide not to leave (or find themselves unable to leave due a change in THEIR circumstances.

You cannot legally even start the eviction process for 6 months (whatever any tenancy agreement says, though you don't even have one!) and it can then take another 3-4 months again.

And if this is a 'friend', even more reason not to do it - any issues (they don't leave/pay rent/they leave the place filthy.... and you lose a friend as WELL as the tenancy issues.

And if HMRC find out?
What if there's a fire? Your insurance will be invalid?
Or a gas/boiler problem? You can go to prison for renting without a gas certificate

.......

arbrighton

DannyboyMidlands wrote: »

Sounds like and accident waiting to happen.

This tenant could quite easily live there for 6 months paying half the going rate and you might have a nightmare trying to evict them.

WILL have nightmare more like if they're not bothering with a tenancy agreement etc

DannyboyMidlands

arbrighton wrote: »

WILL have nightmare more like if they're not bothering with a tenancy agreement etc

I used might to cover the slim chance that after 2 months the tenant decides she wants to double her rent payment and so leaves of her own accord.

G_M

DannyboyMidlands wrote: »

I used might to cover the slim chance that after 2 months the tenant decides she wants to double her rent payment and so leaves of her own accord.

Happens all the time.

My tenants regularly ring me up and offer to double the rent they pay.

And yes, when I agree, which I do, they turn round and say they can't afford it and can they have an Early Surrender.

:rotfl:

tbs624

G_M wrote: »

The buyer will not want to buy if you have a tenant in situ (who may not leave) and the tenant may decide not to leave (or find themselves unable to leave due a change in THEIR circumstances.

OP- it's not just that the buyer "will not want to buy" - if they need a mortgage, and its a resi one, then their Lender will insist on vacant possession.

I agree with the points made by the posters who have responded so far - you'd be foolish to do it. There are legalities that you need to meet, as G_M has indicated, and your T could easily be there 9 months at that low rent,or paying you no rent at all. (6 months min before you could apply to court and then the inevitable delays)