Selling to Rent Advice

nirish

In an unexpected twist we are suddenly in a position where we will be selling to move into rental, instigated by cash buyers who want to move quickly and seeing the benefits of making us cash buyers moving forward.

I'm just working through the process in my mind and am confused by the timing of signing a rental tenacy and house sale exchange. I feel it would be madness to sign anything prior to exchange but this traditionally would leave a limited window to sign off on a rental agreement. Does anyone have any experience of this transition?

ashe

Build a window between exchange and completion, giving you time to make arrangements? Speak to potential landlorts and letting agents letting them know your situation so you can try and line things up with the dates and have things ready to kick off as the date approaches.

[Deleted User]

But if the worst come to the worst, you might have to have a rental property for a couple of weeks/a month before actually needing it. But that could make the moving process easier and cleaning etc. This will mean coming up with deposit/rent in advance in advance of selling the house, but you would probably have this situation anyway.

Comms69

nirish wrote: »

In an unexpected twist we are suddenly in a position where we will be selling to move into rental, instigated by cash buyers who want to move quickly and seeing the benefits of making us cash buyers moving forward.

I'm just working through the process in my mind and am confused by the timing of signing a rental tenacy and house sale exchange. I feel it would be madness to sign anything prior to exchange but this traditionally would leave a limited window to sign off on a rental agreement. Does anyone have any experience of this transition?

Don't try do it on the day.


Once you exchange you are obliged to complete. For whatever reason the letting agent / landlord might change their mind.

nirish

deannatrois wrote: »

But if the worst come to the worst, you might have to have a rental property for a couple of weeks/a month before actually needing it. But that could make the moving process easier and cleaning etc. This will mean coming up with deposit/rent in advance in advance of selling the house, but you would probably have this situation anyway.

My issue isn't the overlap in itself. More that I could be contractually committed to a period of rent and then the sale fall through if I sign a tenacy before exchange.

nirish

Comms69 wrote: »

Don't try do it on the day.


Once you exchange you are obliged to complete. For whatever reason the letting agent / landlord might change their mind.

Don't try to do what on the day?

Comms69

nirish wrote: »

My issue isn't the overlap in itself. More that I could be contractually committed to a period of rent and then the sale fall through if I sign a tenacy before exchange.

That's not the case until the tenancy actually begins.

Comms69

nirish wrote: »

Don't try to do what on the day?

Sign tenancy / take possession.

nirish

Comms69 wrote: »

That's not the case until the tenancy actually begins.

Apologies I'm totally new to the rental market. Could you explain the basic process? If I have a rental lined up, have paid deposit and signed a tenancy agreement can I still pull out until the start date on the tenancy losing only any holding fee. Is this correct?

Comms69

nirish wrote: »

Apologies I'm totally new to the rental market. Could you explain the basic process? If I have a rental lined up, have paid deposit and signed a tenancy agreement can I still pull out until the start date on the tenancy losing only any holding fee. Is this correct?

it's complex.


When you sign an agreement etc. You have formed a contract (not the same as a tenancy). If you breach that contract, the landlord would have to mitigate their loss, by re-letting the property. You would not be on the hook for the full term, it would be upto the landlord to take you to court and show they are claiming only unavoidable losses.


A tenancy begins, typically, on the day you take possession (for example the day you collect keys, there are other ways to take possession). At the point you are liable for the full term of the tenancy - typically 6 months.