Delayed Completion

ezr0

goodwithsaving wrote: »

The redemption charge isn't payable until completion which is when the balance is settled. You can exchange with a completion date for 28 days for example, or for when your vendor's fixed rate mortgage term expires.


You shouldn't be dealing with the seller directly. After exchange, fine (sort of). Before exchange, no.


You don't get the keys on exchange, you get the keys on completion. You don't own it on exchange, you own it on completion. He pays for the house and mortgage until the completion date.


Being an FTB doesn't "put the ball in your court". That's not how house buying works.

Sorry yes i didnt mean "ball in my court" in such terms, i meant surely its me doing him a favor so he shouldn't be so forward about doing this?

Thats all i needed to know regarding keys on exchange etc, im effectively living in "his" house for a month and im not ok with that.

goodwithsaving

You must discuss this with your solicitor.

£1500 isn't that substantial a loss. I loss £5k in redemption penalties when I had to sell due to relocation.

AnotherJoe

Why cant you just complete a month later than the initial date the vendor (or you?) proposed? Would that be a problem for you?


Otherwise, as others have said the risk is pretty much all on your vendor if you move in a month ahead of completion.

bouicca21

Just wait another month and set the completion date accordingly.

G_M

The risk is mostly all his. Not yours. He is suggesting one of 2 things, both mad from his point of view:


1) Completion (the date you become owner) is put back a month, but you move into the property a month earlier, either as a tenant (paying rent) or as an Exclusive Occupier (effectively a guest in his house) (no rent).


Either way his solicitor and mortgage lender will veto this idea. You might not Complete, remain in occupation, refuse to pay to Complete but also refuse to leave, and he'd have a nightmare on his hands. Plus if rent was paid he'd have to pay tax. and comply with landlord's legal obligations....



2) you Complete on the original date ie he gives you the keys and the signed form TR1 form the land registry thus passing ownership to you. But you don't pay him till a month later.


Again - even bigger risk for him. What if you don't pay?
But risk for you too - you cannot register ownership of the property in your name via the TR1 because his mortgage lender still has a Charge registered against the property.


But if you and e both accept the risks (and somehow fudge your respective lawyers/lenders, go ahead!

ezr0

Yes we could just complete a month later, we just wanted to be in before christmas thats all, plus we're renting currently so need to give 4 weeks on that as well.

The seller is being completely open about it and is allowing us to move in November if we wanted and have a month rent free and then start our mortgage beginning of January. As i said hes offered to pay for some small jobs we originally said we wanted to do also, plus hes now saying if we liked any of the furniture we could get something from that too.

I want to help i really do i just want to make sure its legal! Is "having a free" month legal?

goodwithsaving

ezr0 wrote: »

I want to help i really do i just want to make sure its legal! Is "having a free" month legal?

So ask your solicitor.

davidmcn

ezr0 wrote: »

I want to help i really do i just want to make sure its legal! Is "having a free" month legal?

You're already paying a solicitor to advise you on the legalities.

Depends what you mean by "legal". There's nothing inherently "illegal" about letting somebody live in your house for a month. It's more of a legal issue for the seller as they (probably) ought to disclose the arrangement to their lender and insurer and (depending on how this is being documented) comply with the usual legal obligations on landlords.

eddddy

ezr0 wrote: »

I want to help i really do i just want to make sure its legal! Is "having a free" month legal?

It's completely "legal" for somebody (like your seller) to say "You can live in my empty house for a month as my guest."

(I could equally invite you to live in my house for a month as my guest.)

It's just strange to invite a stranger to live in your house for a month. It makes you wonder which of the following are true...

- The seller has some hidden agenda
- The seller is very naive
- The seller is an unusually nice person

I think the tactful answer to give the seller would be "if it's OK with your solicitor, it's OK with me."

So is the house empty at the moment?

G_M

I'm still unclear if he is proposing



1) letting you move in, rent free, a month before Completion
or
2) letting you Complete, take ownership, and move in, but not pay him till a month later


I wonder if he knows himself?