House purchase completion date 31st but rent back to the vendor for a while?

bankholiday

Hi Everyone

I wonder if anyone can advise?

We have a house purchase going through, we are a chain free buy to let buyer and our vendor is moving so she has to buy hers, but vendor's vendor is a buy to let landlord, so it's very small chain.

We are ready to exchange (mortgage, survey, searches are all done a month ago), but the vendor's has to sort out her buying plus her solicitor is very slow.


Now we have been informed our vendor is close to exchange but our vendor's vendor is going on holiday from next week to 7th of April, and the vendor's vendor refused to complete before 7th of April. :eek:

The problem is this is a buy to let property, so after 31st of March we should pay 3% higher rate stamp duty, which is not ideal for us.

Therefore EA suggested we all exchange by the early of next week(basically before our vendor's seller's holiday),
but we complete on 31th of March and our vendor would complete on 7th of April and then we can rent back to her for one week.

Normally we wouldn't agree to this, or without the stamp duty change, 1 week delay is nothing.

However the change of stamp duty made us consider to accept this suggestion.


What are your thoughts on this?
Would you do this?

If so, would you let her staying for a week for free?
Or would you charge?
If you charge, should you charge a market rate?
or reduced rate? (ie. 50%)

What about a deposit?
Do we have to ask her for a deposit?
If so, should we put the deposit in TDP?

Also is there this kind of short tenancy agreement or could I use the standard AST with altered dates?

Even this case, we presume we should sort out our duty, such as Gas certificate, smoking alarm etc. right?

Sorry to ask too much, my head really hurts.

To be honest, we would like to ask her to move to her family for a week instead, but moving twice will be big hassle for an old lady. So I expect she would say NO to that option.

Thanks for your time.
All opinions and suggestions would be really helpful.

Annisele

What will you do if she doesn't move out after the week?

The arrangement sounds very much like a sale-and-rent-back. I'm no expert, but if it does turn out to be one of those, and if she won't move out, she might be entitled to stay there for five years. Take advice from your solicitor!

Edit: plus, you say you're buying with a mortgage. Your BTL mortgage is very unlikely to allow you to let to the previous owner (or at least, not immediately). So your solicitor will probably have to say you can't do it.

marksoton

Not another one....

davidmcn

What does your solicitor think about it, given they're the ones who you need to certify to the lender that you're either getting vacant possession or (probably) a new AST?

agrinnall

How can you complete on one date and your vendor on a different one, it makes absolutely no sense? In fact, about as much sense as listening to a crackpot scheme proposed by an EA. At the very least you should have consulted your solicitor before wasting your time posting and our time reading and replying - hopefully they would have told you to come to your senses.

dimbo61

Are you mad ?
Estate agents or !!! holes !
It could take 6/8 months to get someone out with NO rent
AST at least 6 months period

G_M

Are you sure a BTL property is wise?

Do you have the faintest idea what you are doing?

Tenancies in Eng/Wales: Guides for landlords and tenants

ThePants999

Agree that the first week's rent is free, but after that it's <insert some rate that's well above market rate>. Then, if they don't leave, all the better for you.

dimbo61

She can move into a hotel or stay with family or friends.
You need vacant possession !

the right of a purchaser to exclusive use of a property on completion of the sale, any previous occupant having moved out