Exchange/completion plus two weeks situation

bikeman17

After 8 months we are ready to exchange and complete. However the seller is on a chain which we are buying form him to buy his next purchase. He calls me to say after completion he would like two weeks to renovate his next home as it needs work.

We agreed he pays half my mortgage, council tax and service charge.

What is the best way forward, what shall I advise him to do with the utility bills and anything else I should be aware of/do?

anselld

Speak to your solicitor first. This is a non-starter.

sammyjammy

The best and only way forward is to rescind your agreement. This will be against the terms of your mortgage and could lead you to have a tenant in your house that you cannot easily remove.

bikeman17

I'm in good relationship with the seller, we've been in touch since day one of the paper work and I've contacted him many times to chase for things from his side.

His a trust worthy man and his only moving across the road to a bigger house.

Just not sure how to deal the bill side of things.

He requires two weeks but I won't move in after another two weeks because I will need work done.

Would you normally advise him to call all his utility providers and say his moving home, so there is no unexpected bills from my end?

anselld

The bills would be the easy part - he retains them in his name until he actually moves out.

But seriously, this is a very unwise way to proceed. He may be honest, who knows, but you have to ask yourself why he would even consider asking for such a position. He must know it is a cheek to say the least.

da_rule

This is a terrible idea. No doubt the contract you!!!8217;re about to exchange on is on the basis of vacant possession. Therefore he will automatically be in breach of the contract on completion, but the issue is that you have acquiesced to the breach which will make enforcement of any subsequent breaches almost impossible.

Also, as has been said, assuming you have a standard mortgage there will probably be a term that you are to occupy the property as your main or principle home and not let it out without consent. Therefore you will in all likelihood be in breach of your mortgage contract. Your solicitor (assuming they are also representing the lender) cannot allow this to happen as they have a duty to the lender, who is also their client.

As you have mentioned service charge, is this leasehold? If so you may find yourself in breach of the lease by letting the property out without the freeholders consent.

It also opens up a load of other issues such as you becoming a landlord, eviction procedures, tax on the income you receive etc.

Also, what if the works overrun?

eddddy

Discuss this with your solicitor. (Your solicitor will say "no")

You could end up in huge trouble if you go ahead with this.

(For example, if your solicitor or mortgage lender finds out about this plan between exchange and completion, your mortgage offer will be withdrawn.

You will be unable to complete, and the people higher in the chain might sue you for tens of thousands of pounds.)

elsien

Why can't he put his stuff in storage and stay with friends/ in a cheap b&b for two weeks?

Cakeguts

Your best way forward is to tell him that you can no longer allow him to stay in the house after you have completed. This isn't being unkind it is to protect you against having your mortgage withdrawn, him deciding to stay there longer than two weeks and you can't get him to move out and you becoming a landlord without a buy to let mortgage. Him paying half your mortgage means that you will become his landlord. This could end up costing you a lot of money.

CIS

bikeman17 wrote: »

After 8 months we are ready to exchange and complete. However the seller is on a chain which we are buying form him to buy his next purchase. He calls me to say after completion he would like two weeks to renovate his next home as it needs work.

We agreed he pays half my mortgage, council tax and service charge.

What is the best way forward, what shall I advise him to do with the utility bills and anything else I should be aware of/do?

The council tax charge will stay in his name anyway, not yours. As he is still living in the house as his 'sole or main residence' he remains liable until he actually moves out, regardless of the fact that you have completed.

Tom99

[FONT=Verdana, sans-serif]Don't do it, just say your mortgage co will not allow it as vacant possession is require on completion.

[/FONT]"S[FONT=Verdana, sans-serif]orry would like to help you old chap but............"[/FONT]