Buying a house and giving the vendor 2-3months to move out.

Oranjeboom

As FTB (with no chain) and mortgage in principle we're in a better position that most buyers. We're also flexible in that we only have to give 1 months notice to our landlord.

We've seen a property that we're tempted to put an offer on. Vendors have since their previous 2 'sales' eventuate into nothing. To help them out we'd be be in a good position as after completion (subject to them accepting out offer of course!), we'd be able to give them 2-3 months (or whatever) to move out. Obviously this kind offer from our part would be reflected in the money that we're offering for the house. They benefit by selling their house without the sale collapsing for the third time and having extra time to find a new place to buy without too much pressure to move out from us. Ideally they'd find a chain free house.

How would such an arrangement be organised?

I guess we'd have to have this stipulation in the contracts that states on completion of the sale, the vendors would have 3 months to move out of our property.

Or:

Once we have exchanged contracts, both parties agree to set a date for completion, 3 months down the track? I understand that once we have exchanged, the sale is legally binding. Therefore, if we back out now, we’ll forfeit our deposit to the seller. But what happens if the vendor decides to pull out 2 months after we exchange - we get our deposit back but aren't compensated for wasting our time, effort and expenses?

Is there a way we can safely make this arrangement safe ('as houses':rotfl:) that ensures the house becomes ours but also gives a guarantee to the sellers that we will give them 3m to find their own place? We'd also want a guarantee that they don't trash the house during this period!

As a FTB I'm not sure how the solicitors would arrange this. there's probably an obvious answer to this.

Thanks, OB.

PS One way would be to complete and then make the vendors our tenants for 3 months. But this would not be ideal for us either.

GAH

I very much doubt your mortgage provider would allow this as they will require vacant possession of the property on completion.

Plus I asume you are taking out a homeowner mortgage not a buy to let mortgage.

Buy the traditional way, after exchange if either party pulled out, they would be a fool as the costs to be re-imbursed would we excesive.

motherofstudents

You will never get a solicitor to agree to completion without vacant possession. You could possibly exchange and set a long date for completion but how long do they need ? Seems a bit unnecessary to me. Can they not rent or move in with friends/relatives for a while ? Yes, if they pulled out after exchange they would have to compensate you.

Ivana_Tinkle

Not sure what the advantage to the vendor is. If there's an onward chain then you'd have to wait (within reason) for them anyway, and if they're moving into rented accommodation then it's not going to take them months to organise it. Why would they give you a discount?

G_M

Forget this plan.

1) if you are getting a mortgage, the lender will not permit this.

2) if you are not getting a mortgage, you could do this but...

3) do you really want to be a landlord? With all the extra legal responsibilities of being a landlord? And the extra costs (eg tax.....?)

4) and what if after 2-3 months they don't move out? You do realise it is impossible for a landlord to even START eviction within 6 months, and could then take another 3-4 to evict? So they might be there for up to 10 months?

Oranjeboom

Thanks all, I thought this would be a bit complicated.