PLEASE READ BEFORE POSTING

Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Renting property prior to exchange/completion

It's been five months since I put an offer in on a converted flat and still haven't exchanged. The issue holding up the sale is the building regs for the conversion - this is being done retrospectively after the property was rented for some time and it's taking ages. We believe it is reasonably close to being done now, has had council inspections etc, or so we hope!

As it has taken so long, and from my consistent complaints to the estate agent, the vendor through the estate agent has said I could rent the property until completion, with one months rent as a deposit and the rent refundable based on how many weeks it is until completion. Obviously this seems like not a great idea from his point of view, which makes me wonder why he offered it, but he has and I would like some advice and opinions on whether this is a good option for me and where I would legally stand.

My living situation isn't great so being able to move as early as possible would be amazing for me - but I don't want to get stuck in a bad situation obviously.

Comments

  • Pete9501
    Pete9501 Posts: 427 Forumite
    Interesting offer, have a quick chat with your solicitor but I would take it.

    I sold my first house to a cash BTL landlord who wanted to rent it out. He knocked me £5000 on the asking price, so in return I asked if I could rent it back for £1 per month for 3 months, as I didn't have a property to move to. He agreed. I sold and became a tenant whilst having the cash in the bank to go and buy my next house in effect a FTB. Found a bought the house in short order, replaced bathroom, plumbing and wiring whilst living in my rented home, Then moved in just as the tennancy ran out. He gave me back my cheque for £3 on handover.

    So it could be a good move and since you haven't exchanged you could get out if the roof blew off.
  • lolix
    lolix Posts: 9 Forumite
    Thanks for the response, that doesn't seem like a very similar situation though?

    I think my main concern is the sale falling through, or them taking longer and longer if I'm signed to a rental agreement - but I guess when I sign the tenancy agreement I can't be removed for 6 months anyway. Also legally if I sign an AST and then I become the landlord by purchasing the property there are no issues there?
  • Guest101
    Guest101 Posts: 15,764 Forumite
    lolix wrote: »
    Thanks for the response, that doesn't seem like a very similar situation though?

    I think my main concern is the sale falling through, or them taking longer and longer if I'm signed to a rental agreement - but I guess when I sign the tenancy agreement I can't be removed for 6 months anyway. Also legally if I sign an AST and then I become the landlord by purchasing the property there are no issues there?

    What about u sign and they withdraw from the sale?
  • lolix
    lolix Posts: 9 Forumite
    Yeah that's what I mean by sale falling through, from my perspective then atleast I have somewhere I want to live in for 6 months and can then look at other places.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    As you've already realised this is a bigger risk for the vendor than it is for you. Just make sure that anything you agree is agreed in writing.
  • lolix
    lolix Posts: 9 Forumite
    Thanks for the advice. It looks likely they'll have a tenancy agreement ready to sign this week so hopefully it all goes well.
  • The vendor is claiming they'll have a clause in the contract where if the sale falls through on his end I can end the tenancy agreement, is this something that can actually be legally binding with an AST?
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    10,000 Posts Combo Breaker
    lolix wrote: »
    The vendor is claiming they'll have a clause in the contract where if the sale falls through on his end I can end the tenancy agreement, is this something that can actually be legally binding with an AST?

    An AST can be ended early by mutual agreement, and it sounds like the contract will formalise their side of that agreement should you wish to take it up. What neither side can do is end an AST unilaterally, so even if the sale falls through you'll be able to stay until the end of the AST (and if they want you out, the issue of a valid S21).
  • Thank you, so essentially they will be saying in writing that if the sale falls through they will surrender the tenancy agreement, and this is enforceable by law if I want to leave?
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.2K Banking & Borrowing
  • 252.1K Reduce Debt & Boost Income
  • 452.3K Spending & Discounts
  • 240.7K Work, Benefits & Business
  • 617K Mortgages, Homes & Bills
  • 175.6K Life & Family
  • 253.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.