Help with moving from renting to owning

getmore4less

Our rent is paid on the 24th of each month and we’re trying to plan so that we don’t end up paying rent and mortgage at the same time. Can anyone confirm whether my thoughts below are correct please? -

Don't do it far too risky for a bit of rent.

Don't give notice before exchange and you have a target completion date.

You might get close with a small overlap keeping your vendor happy.

Give yourself some overlap,
clean the new place move in clean the old place etc.

If any work is needed doing it on an empty place is so much easier but you may have plans.

You can also try to complete avoiding the difficult days like a Friday where if things go wrong you have to wait till Monday to get anything done.

If the place is empty this month then the vendors won't have moving to do and if you are targeting Feb then,

Get them to exchange before the 24th Jan with a completion some time in the week of Feb Mon 18- Friday 22(avoid the Friday)

You move out on the Sat 23rd.

If you need another weekend you could go for 14th/15th completion and hope there are no hickups just over a week overlap


If using a mover midweek can be cheaper and cover the rent costs anyway.

george4064

Emywoo84 wrote: »

Thanks for the word of warning. We’re not planning on giving notice until exchange has happened, just trying to limit overlap of payments if at all possible as that seems sensible. It shouldn’t be an issue hopefully as there’s no chain and the property we are buying will be empty from the 26th of this month.

Did you end up paying for mortgage and rent out of the same pay check?

I'm not sure yet, but I'll know soon. But I have set aside some savings in-case this does happen, so shouldn't be a problem either way.

getmore4less

Emywoo84 wrote: »

Thanks @DottieDam! The house we’re buying is currently being rented out. The tenant is due to leave later this month and then we’re going to go and see what it really looks like without their furniture in it etc, but definitely thinking we’ll need time to clean and decorate before moving in like you say.

Congrats on your new home and thanks for answering the question and understanding where I’m coming from!

the property we are buying will be empty from the 26th of this month.

That's too late to exchange this month in time for your rental notice of the 23rd

You need to see vacant possession before exchange.

G_M

There are 2 aspects to this which you may be confusing:


1) cashflow
You are trying to avoid making a rental payment and a mortgage payment in the same month. This suggests you have a cashflow problem which is not wise when buying a new property. You need a contingency fund.

* If you have one, the cashflow would not be a problem.
* If you don't, then you are clearly over-stretching yourself with this purchase.

2) duplicating payments on properties
You are concerned about paying rent to cover a period when you will also be a home-owner and paying a mortgage for the same period.
This is usually unavoidable, but can be minimised by
* agreeing a longer gap between Exchange and Completion
* giving your month's notice (calender month or tenancy period? Depends on type of tenancy) the day you Exchange
* the dates you actually pay your mortgage (and rent) are irrelevant - it's the period they cover that matters.

Mutton_Geoff

Have you not considered the sheer convenience of having an overlap of 2 or more weeks? You can move in at your leisure. Strip back and decorate your new place without the clutter of boxes whilst being able to go back to your rental for a clean hot shower and clean bed.


Personally, I'd build in an overlap rather than try to trim it out of the equation. If anything delays completion, you've already got a buffer built in.

ThePants999

Agree, overlap is incredibly useful.

When you say that the tenant in the place you're buying is "due to leave" later this month, what does that actually mean?
1. They've served notice that expires later this month.
2. The landlord has served them notice that expires later this month.
3. The landlord is going to court for possession, and the court date is later this month.
4. The landlord has obtained a possession order, and the bailiffs are going round later this month.

If it's #1 or #4 then fine, but be aware that if it's #3 or especially #2, the tenants are under no obligation to leave this month (and it could potentially be many more months if #2). Strictly speaking that's not your problem - if you exchange contracts, and then find that come completion day there are still tenants there, the seller is liable to you for all the costs you incur as a result - but it would still be a royal PITA!

Didymus

getmore4less wrote: »

That's too late to exchange this month in time for your rental notice of the 23rd

You need to see vacant possession before exchange.

We’re not in a rush so not expecting exchange to happen until next month, all being well!

Didymus

To those talking about overlap, yes, in the scenario mentioned in my original post, there would be an overlap.

In an ideal world we would exchange some time before the 23rd Feb, complete sometime at the beginning of March and not have to leave the rental property until the 23rd March.

Didymus

ThePants999 wrote: »

Agree, overlap is incredibly useful.

When you say that the tenant in the place you're buying is "due to leave" later this month, what does that actually mean?
1. They've served notice that expires later this month.
2. The landlord has served them notice that expires later this month.
3. The landlord is going to court for possession, and the court date is later this month.
4. The landlord has obtained a possession order, and the bailiffs are going round later this month.

If it's #1 or #4 then fine, but be aware that if it's #3 or especially #2, the tenants are under no obligation to leave this month (and it could potentially be many more months if #2). Strictly speaking that's not your problem - if you exchange contracts, and then find that come completion day there are still tenants there, the seller is liable to you for all the costs you incur as a result - but it would still be a royal PITA!

It’s number 2, the landlord has served them notice. We’ve viewed the place twice while the tenant has been there and she’s packing, so we’re crossing everything she moves out as planned.

ThePants999

Emywoo84 wrote: »

It’s number 2, the landlord has served them notice. We’ve viewed the place twice while the tenant has been there and she’s packing, so we’re crossing everything she moves out as planned.

Cool. While strictly speaking there's a chance of this all going badly wrong, if she's packing then she's probably going