We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
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're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Seller up the chain offering money to cover rent notice period - will lender object?
Options
Moobelle
Posts: 2 Newbie
Hi!
This is a bit of an unusual one but I wonder if anyone else has experienced this:
We are first time buyers, currently renting. We have 2 month notice period on our flat. As it is, we have been asking for a month between exchange and completion. This would mean that there would be another month's overlap where we would have to pay rent and mortgage. We can just about manage this but no more.
Our vendor is cool with it, but the rest of the chain is desperate to complete by Christmas. We had to be really firm because ultimately we are asset poor first time buyers and we feel like we're soaking up cost for the chain's convenience and, at the end of the day, we can afford what we can afford. We're already going to be paying 1 month of mortgage and rent at the same time, we can't stretch to two!!
As a compromise, the top of the chain is offering us £1000 to exchange and complete by Christmas, which would help cover some of that extra overlap. I'm fine with that - seems a bit unusual but at least we're trying to get a solution that works for everyone.
The problem is that my solicitor thinks that this counts as an incentive and says she needs to inform the lender. As it's not coming from our seller and it's not adding to the deposit, I'm hoping that the lender will see it as it is: not a change in house price but money to cover our rent on our current property so we will complete sooner. In the grand scheme of things, it's not a massive amount of money and it isn't coming from our seller... but will the lender see this as something more serious?
Our solicitor is going to contact the lender (ultimately we don't want to be caught out doing something that will land us in trouble) but I just wondered if anyone else had experience of anything similar, to get a feel for where we stand on it. Is it likely to slow things down massively?
This is a bit of an unusual one but I wonder if anyone else has experienced this:
We are first time buyers, currently renting. We have 2 month notice period on our flat. As it is, we have been asking for a month between exchange and completion. This would mean that there would be another month's overlap where we would have to pay rent and mortgage. We can just about manage this but no more.
Our vendor is cool with it, but the rest of the chain is desperate to complete by Christmas. We had to be really firm because ultimately we are asset poor first time buyers and we feel like we're soaking up cost for the chain's convenience and, at the end of the day, we can afford what we can afford. We're already going to be paying 1 month of mortgage and rent at the same time, we can't stretch to two!!
As a compromise, the top of the chain is offering us £1000 to exchange and complete by Christmas, which would help cover some of that extra overlap. I'm fine with that - seems a bit unusual but at least we're trying to get a solution that works for everyone.
The problem is that my solicitor thinks that this counts as an incentive and says she needs to inform the lender. As it's not coming from our seller and it's not adding to the deposit, I'm hoping that the lender will see it as it is: not a change in house price but money to cover our rent on our current property so we will complete sooner. In the grand scheme of things, it's not a massive amount of money and it isn't coming from our seller... but will the lender see this as something more serious?
Our solicitor is going to contact the lender (ultimately we don't want to be caught out doing something that will land us in trouble) but I just wondered if anyone else had experience of anything similar, to get a feel for where we stand on it. Is it likely to slow things down massively?
0
Comments
-
I've seen similar instances to the one you describe happen occasionally, and not once has a lender had an issue. In fact, to the best of my knowledge, I''m not sure any of the solicitors have deemed it necessary to notify the lender.
It seems a little on the pedantic side, by they're the ones having to work to the guidelines laid out in the CML handbook.0 -
Thanks for your reply. I guess we'll have to see what happens - haha this has been the longest house purchase and we thought we had finally wrapped everything up! I guess our solicitor is doing what she can to look after our interests - I'm hoping that because it's a small amount and it's not related to deposit or anything it shouldn't be a problem. Fingers crossed!0
-
to the best of my knowledge, I''m not sure any of the solicitors have deemed it necessary to notify the lender.
It seems a little on the pedantic side, by they're the ones having to work to the guidelines laid out in the CML handbook.
I wouldn't say it was pedantic - it is an incentive so it needs to be reported, I think the only leeway in the CML Handbook is where there it's a variation to an incentive which the lender already knows about.
If the lender ends up with a massive shortfall, you can bet their solicitors will be checking the original solicitor's file to see if they failed to follow the instructions at any point.
But if asked, I doubt the lender will have a problem.0 -
I'd be more worried that i was purchasing a house and had so little contingency money.0
-
Off-topic, but are you sure you need to give 2 months notice? Are you saying this because you know it to be the case, or because your landlord or agent has told you or something to this effect is written in your contract (which may or may not be enforcible).....?
And do you mean 2 calender months, or 2 monthly tenancy periods?
If true, it would imply
* you have a Contractual Periodic Tenancy
* not a Fixed Term Tenancy
* and not a Statutory Periodic Tenancy
* Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 350.9K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.9K Work, Benefits & Business
- 598.7K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards