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sell house to BTL buyer and rent back?

Have sold my house STC to a buyer who wants it as a buy-to-let. However, my house purchase will probably not proceed now. If I exchanged contracts with my buyer and sold my house and remained in it until I find another property in the new year (if buyer agrees), are there any obvious pitfalls with this? It will cost me more in rent each month than my current mortgage, but the current market rate would be affordable.

It took nearly 6 mths for me to find a serious buyer, and I don't want to go through that process again.
Any thoughts?
If you will the end, you must will the means.
«1

Comments

  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    There's not really any pitfalls for you. I would think that renting rather than remaining in a chain would be make you a more attractive buyer when you do find somewhere.

    It's mostly your buyer that will be taking a risk as they don't know what sort of tenant you'll be. Then again they won't have any void period when they first take over ownership of the property.
  • All seems legal and above board.

    But how will you feel about being in 'your' house when it's really not? For example, 24 hours notice for inspection visits, knowing that damage will come off your deposit etc.

    NB BTL biuyers will gazunder you at the drop of a hat
  • fishpond
    fishpond Posts: 1,022 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    You will have to give notice when you leave, or risk breaking the contract, depending on how it is worded.
    I am a LandLord,(under review) so there!:p
  • stator
    stator Posts: 7,441 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Just make sure you get a proper tenancy agreement in place that protects you. Don't assume anything on good faith
    Changing the world, one sarcastic comment at a time.
  • staffie1
    staffie1 Posts: 1,967 Forumite
    Part of the Furniture 1,000 Posts Photogenic

    NB BTL biuyers will gazunder you at the drop of a hat

    True I guess, but then if it came to that, i can forget the whole thing and put the house back on the market in the new year. Don't really want to go through all that again, but better than giving in to tactics such as that.
    If you will the end, you must will the means.
  • staffie1
    staffie1 Posts: 1,967 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    stator wrote: »
    Just make sure you get a proper tenancy agreement in place that protects you. Don't assume anything on good faith

    In this situation, would that be done via a solicitor?
    If you will the end, you must will the means.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    staffie1 wrote: »
    In this situation, would that be done via a solicitor?

    No, the buyer (your LL) would just provide you with a tenancy agreement. If the LL doesn't provide you with a tenancy agreement there would still be a valid tenancy in place as soon as you paid money in exchange for living in the property. You'd have a Contractual Periodic Tenancy.
  • kingstreet
    kingstreet Posts: 39,105 Forumite
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    If the buyer needs a mortgage, you will probably find the lender wouldn't be happy with such an arrangement.

    I don't see how the purchaser's solicitor could certify obtaining vacant possession to the lender.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    kingstreet wrote: »
    If the buyer needs a mortgage, you will probably find the lender wouldn't be happy with such an arrangement.

    I don't see how the purchaser's solicitor could certify obtaining vacant possession to the lender.

    Does that go even for BTL mortgages which the buyer is applying for?

    Edit: Actually do we know if the buyer needs a mortgage?
  • That would then be a sale-and-lease-back deal.

    If so it is possible (& new owner likely doesn;t realise..) that the tenancy must be for at least 5 years: Tenant gets 14 day cooling-off time after signing:You need some sort of licence, from the (now new name) FCA..
    see
    http://www.theguardian.com/money/201...back-shut-down
    - and other conditions....
    &
    http://www.adviceguide.org.uk/englan...ck_schemes.htm
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