Renting house after completion

adamzetec

I have accepted an offer on my house but as of yet I have been unable to find a property to move to. We don't want to lose the buyer, they said they have somewhere to move to in the mean time so there isn't a rush, but I'm keen to get this concluded.

Is it common place to start the process, exchange contracts, complete and then I rent the house from the buyer of my house for a short period of time (3 months perhaps)? Are there any pitfalls of doing this?

LandyAndy

adamzetec wrote: »

I have accepted an offer on my house but as of yet I have been unable to find a property to move to. We don't want to lose the buyer, they said they have somewhere to move to in the mean time so there isn't a rush, but I'm keen to get this concluded.

Is it common place to start the process, exchange contracts, complete and then I rent the house from the buyer of my house for a short period of time (3 months perhaps)? Are there any pitfalls of doing this?

For you, no.

For the buyer, plenty. They'd be crazy to let you do it.

Mr_Moo_2

What LA says. ain't going to work for your buyer. How about you rent another property short term if you don't want to lose your buyer?

GDB2222

I have exchanged contracts with a delayed/flexible completion date. I did that twice in the 1990's when the market was rather thin. It makes everything definite for all concerned, as you have a definite agreed sale, but the buyer does not need to come up with the purchase price until the sale actually takes place.

It's a good deal for the vendor, as it makes him effectively a cash buyer for his new purchase. There's less in it for the buyer, but maybe it's a very nice house you are selling or a very good price.

The usual formula is that the completion date will be at one month's notice, given by the vendor, and not later than say 3/6 months after exchange of contracts. The 3/6 months long-stop date needs to take into account the buyer's mortgage offer.

Personally, I wouldn't bother unless you can get a 6 months period.

HTH

Bluebell1000

A friend of ours is in the porcess of selling her house to a BTL investor. The house they are buying needs substantial work, so they've agreed to rent their house back after the sale, until the works on their new house are finished. So it is certainly possible, but I'm not sure how much legal paperwork is involved etc!

Ivana_Tinkle

They'd need a BTL mortgage, assuming they're not a cash buyer. That's the main (huge) stumbling block.