Should we go in to rental whilst waiting for new build

bulldog14

We are planning on buying a new build house within the next year. It is looking like the best way to get the plot we want and to be in the best position to reserve it as soon as it is released is to sell our house in advance and go into rented whilst waiting for the building to complete.
Talking to the builders I think we'd be looking at anything between 6 and 9 months.
To be honest I don't like the thought of it but if it means us being able to get the house and our first choice of plot then I'll do it!
So, my question....has anyone had to do this? Will us being in a property for only a couple of months go against us when applying for a mortgage and lower our credit rating? Just scared that it could back fire on us!
We have thought about moving in with relatives but with children I don't think it's an option!
Any opinions or experience would be appreciated! Thanks

The_Logans

bulldog14 wrote: »

We are planning on buying a new build house within the next year. It is looking like the best way to get the plot we want and to be in the best position to reserve it as soon as it is released is to sell our house in advance and go into rented whilst waiting for the building to complete.
Talking to the builders I think we'd be looking at anything between 6 and 9 months.
To be honest I don't like the thought of it but if it means us being able to get the house and our first choice of plot then I'll do it!
So, my question....has anyone had to do this? Will us being in a property for only a couple of months go against us when applying for a mortgage and lower our credit rating? Just scared that it could back fire on us!
We have thought about moving in with relatives but with children I don't think it's an option!
Any opinions or experience would be appreciated! Thanks

I don't know about the riskiness of it so can't comment on that, but the thought of moving house twice in a year makes my blood run cold! You'd be paying 2 lots of removal fees, fees to rent and then your legal fees etc when buying the new house. Can you not just hold off and pay to 'reserve' the plot when it is released?

eddddy

You might find it difficult to find a landlord who is as flexible as you would want them to be.

Letting Agents often charge up to 1 months rent for finding tenants, and there are typically void periods between tenants.

So LLs will often look for an initial fixed rental period of 12 months, to make their business economically viable.

(Although, some people rent properties that are usually 'Holiday Lets'. This introduces legal risks to the LL, but not to you.)

Other risks include...
If you sell your current house before exchanging contracts on the new one, things could still go wrong - and you've lost both houses.

3mph

Move into furnished rented so everything goes in storage with storage costs the extra. But the governing issue is what is the market like where you are. Would you really expect to be able to sell quickly or not. Disruption and discomfort moving into rented will be minor compared with stress if you find selling taking time.

ED2

If this is going to be the home of your dreams, its a small price to pay. If you might end up selling it later on for something better its a waste of time and money.