First time buyer-Rent + Mortgage

MaryNB

diljayakody1805 said:

BigD74 said:

Remember that rent is typically paid in advance, while mortgage payment is paid in arrears. This may give you the month “delay” you are looking for. 

For us, last rent payment was on 29/1, we got keys for our house on 19/2, but first mortgage payment wasn’t due until 01/04. First mortgage payment was of course slightly higher because of this, but only to cover the period between 19 - 28 Feb. 

Thank you for the reply. How about the utility services for the house. Whether it is possible to start when we move in July to the house

Utility companies will have standing charges even if there is no usage. You will have to sign up to the suppliers your seller uses and give the suppliers meter readings the day you move in. Once you are set up with those companies you can change supplier (except for water because you won't have options). I'm not sure if there are any suppliers that will waive the standing charge if the property is unoccupied so you'll have to look into that. You'll be liable for standing charges from day 1 unless you manage to find an exemption.
 
You should set up broadband in advance. Could take up to a month to get installed.

You need to set up a council tax account for your new property the day you move in. Check with your local council for their policy on empty properties.

md258

For the utilities, you're probably going to be living in one property and the other empty, so the charges will be limited to the standing charges and hopefully fairly small.

For the council tax- you may be able to claim the single person discount if all the other tenants have moved out?

For the mortgage/rent, you could delay completion or ask the landlord if they agree to early surrender of the tenancy (they may want some money for that but it could be less than the rent).

AdrianC

diljayakody1805 said:

AdrianC said:

diljayakody1805 said:

what if I notify my move out to council and other utility services,will I still liable?. Only I am liable for rent right?

No, you're liable for utilities and council tax for the duration of your tenancy, and you're liable for that tenancy for the duration of the last tenancy contract you signed...

Same as you're liable for repaying the money you've borrowed according to the terms of the mortgage.

I presume your fixed period expires in July - and that was a 12mo contract signed last July? So this is hardly a surprise to you. You've known about it since... July, when you chose to renew a 12mo fixed period rather than simply go periodic.

When did you start your search for a property to buy, and when did you have your offer accepted?

Thank you for the reply. We started to search property in January. Our offer accepted in February. 

So you started looking with 6mo left on your fixed tenancy, and offered with 5mo left.

diljayakody1805

md258 said:

For the utilities, you're probably going to be living in one property and the other empty, so the charges will be limited to the standing charges and hopefully fairly small.

For the council tax- you may be able to claim the single person discount if all the other tenants have moved out?

For the mortgage/rent, you could delay completion or ask the landlord if they agree to early surrender of the tenancy (they may want some money for that but it could be less than the rent).

Thank you for the reply. I am living in a 1 bed flat with a fixed term tenancy. The tenancy finishing in July. On the tenancy agreement does not have clause for early surrender of the tenancy.

diljayakody1805

AdrianC said:

diljayakody1805 said:

AdrianC said:

diljayakody1805 said:

what if I notify my move out to council and other utility services,will I still liable?. Only I am liable for rent right?

No, you're liable for utilities and council tax for the duration of your tenancy, and you're liable for that tenancy for the duration of the last tenancy contract you signed...

Same as you're liable for repaying the money you've borrowed according to the terms of the mortgage.

I presume your fixed period expires in July - and that was a 12mo contract signed last July? So this is hardly a surprise to you. You've known about it since... July, when you chose to renew a 12mo fixed period rather than simply go periodic.

When did you start your search for a property to buy, and when did you have your offer accepted?

Thank you for the reply. We started to search property in January. Our offer accepted in February. 

So you started looking with 6mo left on your fixed tenancy, and offered with 5mo left.

The transcation and completion due before end of this month for the new house. I only have two months till July for the end of tenancy.

MaryNB

MaryNB said:

diljayakody1805 said:

BigD74 said:

Remember that rent is typically paid in advance, while mortgage payment is paid in arrears. This may give you the month “delay” you are looking for. 

For us, last rent payment was on 29/1, we got keys for our house on 19/2, but first mortgage payment wasn’t due until 01/04. First mortgage payment was of course slightly higher because of this, but only to cover the period between 19 - 28 Feb. 

Thank you for the reply. How about the utility services for the house. Whether it is possible to start when we move in July to the house

Utility companies will have standing charges even if there is no usage. You will have to sign up to the suppliers your seller uses and give the suppliers meter readings the day you move in. Once you are set up with those companies you can change supplier (except for water because you won't have options). I'm not sure if there are any suppliers that will waive the standing charge if the property is unoccupied so you'll have to look into that. You'll be liable for standing charges from day 1 unless you manage to find an exemption.
 
You should set up broadband in advance. Could take up to a month to get installed.

You need to set up a council tax account for your new property the day you move in. Check with your local council for their policy on empty properties.

I didn't write this very well. When I say "the day you move in", I meant day of completion i.e. the day the property becomes yours.