Renting the property from the seller while the sale completes?

marleymoo1982

Hi
My husband and I are first time buyers and have found a place we love and had our offer accepted - hurrah! Long story short, it's a converted flat with a basement that isn't habitable at the moment (damp!) and the vendor is in the process of applying for the freehold so the flat will be sold to us with share of freehold. We are currently renting a house and need to move into our own place ASAP as the rent is twice the cost of our new mortgage. The vendor is having difficulty getting the paperwork back regarding the freehold (the freehold landlord lives in Brazil) and has suggested we rent the flat from him while we wait for paperwork to come through so we can then complete.
We have yet to discuss it in any detail - we're giving the idea some thought and getting some advise first.
My main concerns would be:
a)what if he decides not to sell after we've moved in to rent it b) what if he later wants a higher price than the current agreed price
c) we would be forced to live in it as it is - no decorating etc but we were buying it and planning to convert the basement so we could use it as s pare room for when my hubby's kids come a stay (3-4 times a month)

Are there any legal agreements in existance in the UK that would make this a less risky option?

My hubby is against the idea but the alternative is to find a cheaper rental place and tie ourselves into a new rental contract until the sale can be completed so that may slow the sale up further in the long run!

I know this is a slightly strange query - I have no idea where to begin with getting advise and I know the knowledgeable and experienced forum users might have been through this before?!

drummer_666

if the vendor says yes, they are stupid, but it's good for you. so just wait and see!

if sale falls through, then you're in the same position that you're in now. renting, rather than paying a mortgage.

you can't then just be kicked out once you're tennants, so the vendor would have no reason to change their mind on the acceptance price.

DannyboyMidlands

The vendor would be mad to agree.

Cornucopia

I've actually done this as a seller. In my case it kind of worked out, because although the sale fell through, my buyers were then liable to pay me market rent for the time they were renting from me.

So... the things to think about are:-

1. You'll need a contract, which will probably be a modified tenancy agreement. You may need/want the solicitors to agree this.

2. You'll need to decide upon a fair rent, and under what circumstances it will/won't be payable,

3. Insurance liability and other rental bits & pieces (safety certs).

4. You cannot dilute your tenancy rights through a tenancy or other contract, so you need your seller to trust you, or you could offer penalty rent levels if you overstay and no longer wish to buy.