Vendor (family member) not moving out on completion.

josiebabie

Morning helpful people

We are purchasing a house from my OH's mother, she is moving into an empty house that needs a bit of work first. She needs the money from our purchase to be able to complete the work and purchase the house of course.

As she is a family member, we have had to confirm specifically to the mortgage company that MIL will move out on completion day.

Is there anyway or any loophole that will allow MIL to stay in "our" house for a bit longer while the work is being done on her new house? Aside from straightforward deception on our behalf that is. I am happy to stay in my rented accomodation until her house is ready.

Secondary question, what would happen if we allowed her to stay and didn't inform anyone? Would there be any way of them finding out she is still there if we are paying the mortgage payments?

Thanks in advance!

Jx

duchy

Who is going to check ?

If she is there as your "guest" and you have issued a specific invitation to "visit" for a specified period and all utilities, insurances and bills are moved into your name on the day you take ownership then she is visiting and not living there. If it went on for months it might be different though. However if anything went wrong and she refused to move out for some reason (say her house sale fell though for example) it might get very very complicated though.

I know I signed to say I would move out of my mother's house on her completion date -we were buying two seperate houses and when I got gazzumped at the 11th hour our buyer didn't want the sale to fail (we were friendly with them as we'd teamed up when we realized the estate agent was lying to us all). They knew I had found another house but might not complete til a week or two later -and offered that I didn't move out until I completed to avoid having to put everything in storage-so it definitely can happen (didn't happen in the end -I had a fab solicitor who went from offer to completion in 23 days so we all completed on the same day -Phew !)

princeofpounds

If she moves out, you take genuine occupation of the property, and she returns as a guest/lodger of yours then that is fine.

The problem comes if you don't take occupation, and she stays in place.

It feels a bit ridiculous to talk about the problems given you are family, but in theory it exposes both sides to legal risks which, if you were to fall out and get vindicitive, could be a problem.

I can't think how the mortgage company would find out about not having vacant possession, but if they do then they may wish to charge a penalty rate for 'letting' out the property (it's not likely to be a tenancy so I use that in the loosest sense), or in theory they may seek to recover the money, though that's all very unlikely I would think.

Best thing is to probably to take up occupation and have her stay with you, if possible.

josiebabie

So theoretically then, as my OH already lives in the house (I know, haven't lived together yet but we're jumping straight into buying a house...my mother is worried too! :rotfl:), on completion as he is already occupying the property.

So I could stay in my rented, he can stay in "our" new house and his mum can stay put as a "guest" as long as we pay the mortgage payment and transfer all the bills/utilities into our names on completion day?

mummyroysof3

Why can't you just move in so you not paying to keep 2 houses?

josiebabie

I did think about that but it would be a squeeze as I have a 5 year old daughter as well. Plus his mother is very particular and I would feel really uncomfortable with that arrangement! We're very lucky because we're not exactly on the breadline so can afford the extra £650 for the month.

mummyroysof3

That's fair enough. If its a short term arrangement and she staying as a guest then I think as long as no bills are in her name there should be no trouble. She is going to be paying bills as soon as she has her new house even if she isn't living in it anyway I would think