Selling then renting

Anon2017

So am in the process of selling my house. Instructed my solicitor on 1st June. My buyers have a buyer for their house but those buyers are not in a chain (so 3 solicitors involved).

I've been told to allow 12-15 weeks for it all to complete but I realise you can never predict how long it might take.

I have asked my buyers if they would consider delaying completion until 1st October as my early repayment fee on my mortgage decreases then. They haven't responded.

My concern is that I have to find rental accommodation for me and 2 children and have no clue when to start doing this. How much notice do you get when you finally get a date to exchange? What happens if I wait for an exchange date and there are just no rental properties available at that time - can I then delay things slightly?

I know this is probably just a risk I have to accept. There are 2 lovely rental properties that have just come on the market, available end August but if I risk just waiting, they will be gone.

G_M

There are unpredictable timeframes for Exchange, though you can always refuse to Exchange when everything is ready and insist on a delay. You probably won't be popular, but if you've already stated your preferred earliest date at least it come as no surprise to others in the chain.

Finding and securing a rental is also unpredictable. Obviously easier if you are an attractive tenant (that's not an innuendo!). If you have pets, a poor credit history, low income etc you become increasingly less attractive to landlords, so the search becomes harder.

The best solution, if you can, is to have a Plan B to fall back on: family or friends who will put you up for a period in the event of a gap. Or a cheap deal with a budget hotel eg (some will offer special rates if you book by the week not by the night).

Best of luck...

Anon2017

Thank you. I guess I will just have to wait it out. Any rentals that are available from end of August are potentials as they often give you a month before they expect you to move in. I would make my last mortgage payment on 18th August anyway.
I don't have a plan B as I have no family near where I live but possibly some friends could help out short term.

aliby21

When I did this last year I found letting agents really didn't want to consider you till you were quite far advanced in the selling process, understandably. It is not sensible to sign a rental contract till you have exchanged on the sale; you don't want to be committed to paying for rental if your sale falls through. This doesn't stop you keeping an eye on the rental market. When my EA started telling me everyone was good to go and we were looking at exchange the next week, I paid a holding deposit and got referencing underway for a rental. In the end, exchange got delayed and I was coming under pressure from letting agent who wanted to get rental agreement signed, so in hindsight I would have waited till the solicitors were wanting to exchange then told them 'fine I will let you know when I have secured a rental property to move into'. After all, you are you are doing everyone else a favour by breaking the chain - the alternatives are that you could refuse to move until you've got a simultaneous purchase, or pull out altogether.

I've also experienced the other side, buying a house where the owner was moving into rented, and they had obviously found somewhere rather early in the process. I thought it was all ticking along nicely and they suddenly started getting very agitated and wanting exchange NOW - I guess they were in danger of losing this property.

So I guess my short answer would be: don't start looking too early!! But remember it is all a negotiation on dates, and don't be frightened of saying what would suit you.

G_M

Anon2017 wrote: »

I don't have a plan B as I have no family near where I live but possibly some friends could help out short term.

Well that's your Plan B!

But don't leave it to the last minute. Sound your friends out on a hypothetical basis now so you know what's possible (and for how long etc).

Anon2017

Aliby21 - thanks for the info. You're right about EA's not being interested, I've spoken to one already about a rental property.
I'm just going to wait now and then try to delay exchange until 1st October. Financially its in my best interest as I save over £2k in fees. Unless there are any other delays, I'll start looking for somewhere at the end of August.