Moving into a new build house under license?

danfitzjohn

Hi all,

We are in the very final stages of buying a new build house, the house is ready to occupy however there is now a delay due to the warranty certificate not being ready and therefore we haven't exchanged or completed yet and am currently staying in short term let inuring additional costs!

The builder has offered us the option of moving in 'under license' until this certificate is ready however we don't really know what this means and what our liabilities may be. Our solicitor also doesn't seem to comment too much on this option and keeps referring back to the fact that we need the certificate to exchange and complete.

I am of the opinion that if we are effectively offered to move in under some kind of license until the certificate is ready then surely this is a fairly risk free and amicable option considering the circumstances?

Has anyone ever encountered this before and if so can advise on the suitability?

Thank you in advance!

DF

G_M

A licence to occupy is basically a permission. Comparable to you going away on holiday and giving your sister permission (a licence) to stay in your home while you're away.

Not as a home-owner.
Not as a tenant.

So provided any written licence agreement does not include payment, I don't see a downside (for you).

Worst case, the paperwork never gets resolved, you decide not to buy, and you move out again.

eddddy

danfitzjohn wrote: »

I am of the opinion that if we are effectively offered to move in under some kind of license until the certificate is ready then surely this is a fairly risk free and amicable option considering the circumstances?

I guess it depends what the licence agreement says.

For example, if you don't go on to exchange contracts...

e.g. because your mortgage lender doesn't accept the warranty
Or because you lose your job before exchange, and your mortgage offer is withdrawn
Or because the warranty provider refuses to issue a warranty
Or because you change your mind

... will you have to pay the builder some kind of compensation?


Taking a step back, what's in this agreement for the builder? Builders wouldn't normally take a risk like this, unless there's something in it for them.