Renting the property I want to buy

lewishardwick

Hi all,

So I'm still waiting for my vendor to complete chasing the other freeholders to sign the TR1 forms. It could take a week, it could take 3 months.

The vendor has suggesting I rent the place until the Freehold is sorted. TH=his could be convenient as my tenancy runs on in just over 6 weeks.

Apart from the the usual considerations for the vendor (gas safety certs, permission to let from mortgage lender etc) is there any legal reason why I couldn't have a tenancy agreement with a minimum term of two months? This should give both parties the flexibility to change plans should the freehold situation turn sour?

I'd really like to not move twice, I really do hate it!

Thanks all!

HappyMJ

lewishardwick wrote: »

Hi all,

So I'm still waiting for my vendor to complete chasing the other freeholders to sign the TR1 forms. It could take a week, it could take 3 months.

The vendor has suggesting I rent the place until the Freehold is sorted. TH=his could be convenient as my tenancy runs on in just over 6 weeks.

Apart from the the usual considerations for the vendor (gas safety certs, permission to let from mortgage lender etc) is there any legal reason why I couldn't have a tenancy agreement with a minimum term of two months? This should give both parties the flexibility to change plans should the freehold situation turn sour?

I'd really like to not move twice, I really do hate it!

Thanks all!

You would really need to speak to your solicitor and the broker organizing the mortgage on the property to see if it is possible.

It is possible. You cannot be evicted for 6 months so if it does turn sour you can stay in the property for 6 months no matter what.

You can always agree to an early mutual surrender of the tenancy at any time. You would normally do that on the day you complete the purchase.

marksoton

Your vendor is mad!

But i spose it does give you confidence they wish to sell to you....

Pixie5740

Why will your tenancy end in 6 weeks? Have you served notice?

lewishardwick

Pixie5740 wrote: »

Why will your tenancy end in 6 weeks? Have you served notice?

No, but I share and cannot afford the full rent on my own. I'd probably afford an extra month at best but that would be it... But yes, I could always not sighn the tenancy and just allow it to go periodic much to the landlords annoyance.

It did cross my mind!:)

G_M

For you, renting the property until the purchase Completes is a good solution.

For the vendor it is MAD!

1) he needs to get consent from his mortgage company, the freeholder.
2) he needs to change his insurance
3) he needs to comply with 37 other rules/laws
4) he cannot evict you for at least 6 months, so if your purchase falls through, he is stuck with you as a tenant
etc etc

But that's all his problem, not yours!

AdrianC

G_M wrote: »

For the vendor it is MAD!

1) he needs to get consent from his mortgage company, the freeholder.
2) he needs to change his insurance
3) he needs to comply with 37 other rules/laws

Always assuming that isn't all in place, since the place has been let up until now...

lewishardwick

G_M wrote: »

For you, renting the property until the purchase Completes is a good solution.

For the vendor it is MAD!

1) he needs to get consent from his mortgage company, the freeholder.
2) he needs to change his insurance
3) he needs to comply with 37 other rules/laws
4) he cannot evict you for at least 6 months, so if your purchase falls through, he is stuck with you as a tenant
etc etc

But that's all his problem, not yours!

Thanks!

It really is a last resort. I'm hoping they've been able to get the freeholders on board.

theartfullodger

There is a way this can be done without it being an AST, although I doubt your vendor knows how, and quite likely his Solicitor won't either...

See
http://www.landlordzone.co.uk/forums/archive/index.php/t-29873.html

If the buyers are allowed into occupation after signing a contract to buy that is one of the recognised situations where there is no tenancy but a licence. However it is not really recommended unless the buyer pays a full deposit and has an incentive to complete

But I agree with the comments above, the vendor really should not do this.

G_M

AdrianC wrote: »

Always assuming that isn't all in place, since the place has been let up until now...

Really?

I admit I've not checked the OP's posting history for what he might have said elsewhere, but nothing I can see in this thread indicates that....

westernpromise

I did that once. It was a rented property that I was selling, my buyer wanted to be in before Easter and for some reason there was a delay looming. So we exchanged and he then moved in on a licence basis ahead of completion. No problem from the mortgage lender about consent to let because it was a let property already anyway. He was able to get cracking with what he wanted to do, I didn’t charge him any rent, and as his mortgage lender hadn’t advanced him any money yet, he wasn’t paying that yet either.