Renting back to seller?

kezkez

Im nearing completion of purchasing a property however the seller has informed me that he still hasn't found anywhere to move into.

My question is this -

Could he stay in the property and pay me rent?(It will be for a couple of months max) If yes would he still have to disconnect all utilities when the sale completes and then restart them up again? Would I have to pay the council tax or does he?

Thanks in advance :j

G_M

Mad.

You will be alandlord. There 326 seperate laws/regulations you will needtocomply with.

Plus income tax to declare.

Plus insurance issues.


Plus you cannot by law remove the tenant within the first 6months(whatever your contract says).
Plus.......

kezkez

Forgot to mention...I am planning on renting this out in a few months anyway.

bebewoo

Don't do this if you intend to move into the property yourself any time soon (i.e. within the next 6 months)
Do this if you intend to use this property as a rental, but you must do it in the correct way.
You can't do this without a proper 6 month Assured Shorthold tenancy. You will need to deal with paperwork, deposits, repairs, tax issues etc etc, see landlordzone.co.uk for details.
Letting out a house can be a minefield and an expensive one at that. He may seem like a nice guy and promise to move out as soon as he has found a place. But legally once you rent it out to him he does not have to move out for at least 6 months and you may not be able to evict him AT ALL unless you have followed the correct procedures from the start of the tenancy.
In summary, probably best not to if you want a quiet life. BTW he would not have to disconnect the utilities, he would just keep them in his name, as the same with the council tax.

Flashmanchop

SARB Rules.

I wouldnt even like to go there.

why do you mention disconnecting all utilities? dont you mean changing the name of the bill payer?

p00hsticks

Are you buying with a residential mortgage ? If so, a condition of the mortgage will almost certainly be that there is vacant possession at the point of completion.

Werdnal

As above, if you are planning to let the property out, have you bought with a BTL mortgage?

Yorkie1

I thought Sale and Rent Back was almost illegal these days in any event?

Guest101

Yorkie1 wrote: »

I thought Sale and Rent Back was almost illegal these days in any event?

Why'd you say that? not heard it befoe and curious

Yorkie1

I've certainly read it on here.

This BBC article outlines it - not sure if there have been any further developments in the last 15 months since it was written:
http://www.bbc.co.uk/news/business-16872205

PasturesNew

If he stays there, he'll have "super rights" ..... not the common/garden rights of a regular tenant that answered an advert, viewed it and moved in ..... the seller is protected for (I think 5 years) a long time, so not a regular 6 month AST job.

It's probably not something your lender would support either.

And even without that .... it's a bad idea from the start for many other reasons.