sell and rent back?

pinkcheshirecat

Our buyers are planning to rent the house out........they have a BTL mortgage. They have suggested we could rent the house from them until we find a house to buy. Long story short, our purchase fell through this week so we decided to go into rented. Buyer wants to let to us directly, no agent.....first time landlord......opinions? We have never rented before.


Thanks in advance. Pink.

Fire_Fox

What do both conveyancers think?

pinkcheshirecat

I've no idea, it was suggested at the last minute when we exchanged, we need a rental, he needs a tenant. I know that vacant possession would be an issue with a normal residential mtge. Just not sure how btl affects it.

thanks

MRS.B_7-2

This is what we are doing at the moment... our buyer was a landlord with a btl mortgage and our chain was held up by our sellers buying a new build. We didn't ant to lose our buyer so we approached him to see if we could continue with the sale and then rent from him (vacant possession not a problem) he agreed to rent direct to us for 80% of usual rental as he would not be paying an agent. He sorted the gas safety checks etc for the day of completion.

Our conveyancer advised us that we could end up paying both rent and mortgage (on new property) at the same time, and that there was no guarantee that we would go on to exchange and complete on other house etc etc. But the rental side has not gone through the solicitors, we have dealt direct with the landlord.

It's working out for us, we have been renting since august and are now due to move next month.

pinkcheshirecat

Thanks for that Mrs B. It does seem a good solution, just feels a bit odd doing it!

Listerbelle

A common scenarios in other places - Australia and the USA.

Best wishes