Can you stay on temporarily in your old home after completion?

Jaycee_Dove

We are selling our home and buying a new one.


For various reasons the sale of this house is close to completion but our ability to complete on the house that we are purchasing is taking slightly longer.


The person buying our house has suggested that we complete the sale to him and just stay on in this house with his blessing until we can complete our purchase of the new house.


The delay should be only about 4 weeks, but they want to complete purchase of ours before then as they have a time dated mortgage offer that would run out before our purchase of the new house could be finalised.


We know and trust the person buying this house and are happy to do it this way. Indeed it would be helpful to us for various reasons. But we have had conflicting advice. Our estate agent says go ahead but officially don't tell us you are doing it as it is a little unconventional. Our lawyer says it is not at all possible in legal terms.


What are the legal pros and cons of this idea? Is there a way to make it work?


NB: There are no other parties in the chain.

Soot2006

If he has a mortgage then they are unlikely to release the funds if they know you will stay in resident.

If he is a cash buyer, he can do what he wants although his solicitor should advise him against it.

Have you exchanged already?

nearlyrich

I am not a lawyer but I believe your purchaser's mortgage company and solicitor won't be too happy with this, when you sell you sell with vacant possession and the new owner's conveyancer shouldn't complete without it.

tomtontom

I can't see his solicitor allowing him to exchange if he is aware of the situation.

Jaycee_Dove

Thanks for the replies. There is a mortgage, which is why our solicitor says it is not legally possible. We have the same solicitor also (in order to try to speed up the process). So there would be no way we could do this behind their backs.

Tyler_Du

Could you not "move out" and "move back in" as tenants for a month ?

Jaycee_Dove

We have not exchanged yet but are able to do so on the sale but not on our purchase for about 4 weeks. We need about 3 weeks between exchange and completion to organise our move to the new property due to special circumstances - a severely disabled person involved in the move who requires special facilities to be transferred.

Jaycee_Dove

Tyler_Durden_UK wrote: »

Could you not "move out" and "move back in" as tenants for a month ?

I think that was the idea our purchaser had. We were willing to pay a rent for that month. But the existence of the mortgage requiring vacant possession seems to be the reason why he cannot rent the property without some work being done, I believe.

da_rule

As long as the purchaser is aware of the risks then the solicitor cannot stop an exchange, as long as he covers himself by explaining the risks. The contract may need to be amended as it will probably state that the property is sold with vacant possession.

The biggest risk will be from the mortgage lender (if there is one).

kazwookie

What happens if you dont move out in the 4 weeks?

G_M

1) the buyer's lender will insist on vacant possession. you must move out.

2) the buyer's mortgage will presumably be a residential one, not Buy To Let, so he cannot let it out. You cannot move back in.

3) If you did move back in as tenants, the buyer would become a landlord, with multiple legal responsibilities.

4) if for some reason your own purchase fell through, (or you just changed your mind!), the buyer could not evict you legally for 6 months at least.

For you, this plan has few risks/downsides.

For the buyer, it is madness.