FTB and timelines when vendor not sure if renting or buying

soph379

Hi, can anyone help with some advice for first time buyers please? We had an offer accepted on house at the end of July and we’re currently waiting on the mortgage application. We have a solicitor and surveyor lined up and ready to go. However, I’ve read advice that you shouldn’t pay for the survey and solicitor until there’s a chain in place. Our vendor currently hasn’t found anywhere they want to buy yet, but has said they’d be happy to move into rented if they don’t find anything. 

What’s the best route forward with this? Wait it out for them to find somewhere to buy (and risk our mortgage offer expiring?) Take their word for it that they’ll find somewhere to rent and go straight ahead with paying for the the solicitor and survey? The seller has put the house on the market several times before and accepted offers, which makes us very wary of paying out before we’re totally sure they’ve got somewhere to move to.

To complicate things further, when I asked about timelines (i.e. how much time would have to go by without the vendor finding anything to buy before they considered renting), the estate agent has told us that legally, the vendor can’t sign a rental agreement until the contracts have been exchanged. Does this sound correct? I’ve done some googling and can’t find anything about this and am worried we’re being taken for a ride by the estate agents!

ElizabethRose

I suggest a frank conversation with the vendors about timescales. Our old neighbours took 18 months to sell their house and went through 3 sets of buyers as they couldn't find somewhere to move to and couldn't decide to rent or not. I'd tell them you won't progress until you know if they are moving or not otherwise you could be hundreds out of pocket.

No idea what the estate agent is going on about as I previously moved out of a mortgaged property and rented. Is it because of affordability checks that they wouldn't pass? There are certainly no legal reason why they can't own a property and rent. 

snowcat75

soph379 said:

Hi, can anyone help with some advice for first time buyers please? We had an offer accepted on house at the end of July and we’re currently waiting on the mortgage application. We have a solicitor and surveyor lined up and ready to go. However, I’ve read advice that you shouldn’t pay for the survey and solicitor until there’s a chain in place. Our vendor currently hasn’t found anywhere they want to buy yet, but has said they’d be happy to move into rented if they don’t find anything. 

What’s the best route forward with this? Wait it out for them to find somewhere to buy (and risk our mortgage offer expiring?) Take their word for it that they’ll find somewhere to rent and go straight ahead with paying for the the solicitor and survey? The seller has put the house on the market several times before and accepted offers, which makes us very wary of paying out before we’re totally sure they’ve got somewhere to move to.

To complicate things further, when I asked about timelines (i.e. how much time would have to go by without the vendor finding anything to buy before they considered renting), the estate agent has told us that legally, the vendor can’t sign a rental agreement until the contracts have been exchanged. Does this sound correct? I’ve done some googling and can’t find anything about this and am worried we’re being taken for a ride by the estate agents!

Take anything the EA says with a massive pinch of salt there spawning a lie to keep you on the hook.... never trust them, there attempting to make you not walk when you find out the truth on the timescales. 

Young_Turk

I doubt there is any truth to the EA's claim that the vendor can't sign a rental agreement. It's much more likely that he doesn't want to at this stage. I think the normal procedure would be to set completion several weeks after exchange and then find a property to rent ASAP after exchange. 

As the vendor has said he is happy to rent if he doesn't find somewhere, it's probably best for you to proceed as quickly as possible. At some point in any property you incur costs (conveyancing, usually mortgage application fees and survey) and there is always a risk that the purchase falls through, quite often on the whim of the vendor. If you proceed as if he is telling the truth about willingness to rent, you might be able to exchange quickly. If you wait, it will definitely be delayed.

soph379

Thanks all, this is really helpful :-)

AnotherJoe

Many vendors renege on such promises.
how you can determine if they will be one of them, i'm not sure. Maybe call their bluff let them know that the deal is contingent upon a date you set that's reasonable, say 12 weeks off and make it clear you will stick to that.