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Rent house to current owner
hema123456789
Posts: 49 Forumite
So we’re currently in a bit of a pickle. Thought our sellers didn’t have a chain and we’re going rent following our sale but they’ve turned around and said they’ve secured a new build house.
We’ve got everything lined up to exchange next week and complete the middle of jan but now they’ve had a bit of a hiccup and seem to think it will take 4-6 weeks longer. They’ve asked for completion to be ‘on notice’ which is worrying for us as we’re working towards a hard deadline of 31.3.21 for the stamp duty.
now we’ve asked if we can do our purchase first but they don’t want to move twice which is fair, have also offered them to leave furniture in the garage and take it when they can. My final thought is if they’d be able to rent the house from us without any issues providing we get consent to lease?
also as it’s 2 people, could we consider them lodgers if one of us move in and not have to go down the consent to lease route? I expect it will be for a month or 2 max but just want to complete as quickly as possible without causing anyone any additional aggravation
We’ve got everything lined up to exchange next week and complete the middle of jan but now they’ve had a bit of a hiccup and seem to think it will take 4-6 weeks longer. They’ve asked for completion to be ‘on notice’ which is worrying for us as we’re working towards a hard deadline of 31.3.21 for the stamp duty.
now we’ve asked if we can do our purchase first but they don’t want to move twice which is fair, have also offered them to leave furniture in the garage and take it when they can. My final thought is if they’d be able to rent the house from us without any issues providing we get consent to lease?
also as it’s 2 people, could we consider them lodgers if one of us move in and not have to go down the consent to lease route? I expect it will be for a month or 2 max but just want to complete as quickly as possible without causing anyone any additional aggravation
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Comments
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Do not do it.2
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Thanks but any reasons why? Do you mean do not complete on notice or do not allow them to rent?
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Thanks but any reasons why?KatrinaWaves said:Do not do it.0 -
A thousand reasons. What if they house is delayed? What if for some reason they can’t move to their new one of decide not to? Then you are stuck with tenants for however long.
plus you will have to comply with all the legal requirements of being a landlord because that’s what you will be. Plus the issues with your solicitor and mortgage requiring vacant possession which isn’t possible if it isn’t vacant.
moving in with them to make them lodgers sounds insane.
Vacant possession or no completion.6 -
All of the above, plus you really need to read up on the FCA-regulated "sale and rent back" situation...
As far as their new-build goes, what if the build is delayed? What if it's delayed long enough to hit their long-stop date, and they decide to pull out. Congratulations, you're still their landlord.
And will your mortgage lender allow you to let the property anyway...? If they find out between exchange and completion, they would be within their rights to pull out.6 -
You could offer 31.3.21 as a long stop date for completion. Otherwise it’s walk.1
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Thanks for the responses, just to shed some light on our situation, we’d actually be fine for not living in the house for around a year. Sounds insane but our original plan was to buy and rent until we get married and move in together (very religious old parents!) and then decided actually my partner should just live at the property and have lodgers instead to help with the bills and mortgage cost instead of formally letting the property out.My thought process was if my other half was named on the electoral register and provided our insurance covered lodgers, there wouldn’t really be an issue here? We could move bills, etc everything over to us like we would usually, they could take their time in moving, we beat the stamp duty holiday deadline. Wins all round..?0
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If we state the completion date as on notice or before the mid of March, are they legally bound to move out on that date? Could anything mean that they don’t and they break the chain?0
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If you exchange with that stipulation, yes, but its not easy and requires legal proceedings if they refuse to move. You can never guarantee it.hema123456789 said:If we state the completion date as on notice or before the mid of March, are they legally bound to move out on that date? Could anything mean that they don’t and they break the chain?
If you want to let it out, buy it and then let it out. Do not rent to the old owners for all of the above reasons. If youre not even going to look into the issues described by the people you have asked, then why ask?
Have you looked into your mortgage lenders terms on vacant possession? Spoken to your solicitor? Looked into sale and rent back? Its not as simple as 'oh well we were going to rent it anyway!'3 -
You won't. For that and the various other reasons, this is a non-starter.hema123456789 said:providing we get consent to lease?1
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