Stamp duty deadline - getting existing occupant out in time

markelanduk

Hi all,
I'm in the process of purchasing a home and an very mindful of the end of June deadline for the stamp duty holiday. The current occupier of the home I'm buying is having problems finding somewhere suitable to move and I'm concerned the delay might end up costing me approximately £10k.

Other than applying pressure i.e. threatening to pull out of the transaction, is there anything anyone can recommend please? Is it at all legal on completion to allow the previous owner to remain in the house until they've found somewhere else? Sounds desperate but I'm open to ideas!

user1977

It would be a completely mad idea, and if you're buying with a mortgage it's a non-starter. You sure sharing some of that £10k saving won't tempt the vendor to find somewhere else to stay?

Tiglet2

Is the current occupier looking for a property to buy or are they looking for a rental?  If they are buying, then I doubt the stamp duty deadline will be met.  If they are looking to rent, it is possible but rentals are very scarce, particularly for the short term.  

Your solicitor will not allow you to exchange and complete without vacant possession, otherwise you are in buy to let/landlord territory with all the responsibilities that come with that.  Your Mortgage (if you are obtaining one) is a residential one, I assume?  The lender won't release the funds without vacant possession and becoming a landlord would necessitate a buy to let mortgage.

AdrianC

markelanduk said:

Is it at all legal on completion to allow the previous owner to remain in the house until they've found somewhere else?

You would become their landlord, with all the legal responsibilities and rights.
Unless a cash buyer, you would need a BtL mortgage, not residential.

...but...
the transaction would be viewed as "Sale and Rent Back" (SARB), which is regulated by the FCA, and can only be legally done by authorised firms. Of which there are none. The legislation is aimed at stopping mickey-taking "equity release"-style schemes which pay below market value and then issue notice to the tenant as soon as possible - but is a catch-all.

Slithery

Tiglet2 said:

and becoming a landlord would necessitate a buy to let mortgage.

And would also be illegal under 'sale and rent back' FCA legislation.

comeandgo

Offer them £5k to move immediately

markelanduk

Hi all, thanks for the advice!
They're quite elderly and they're looking for rental accommodation from my understanding. They're motivated sellers so I'm hoping just the threat of pulling out will suffice. If it doesn't, I guess offering them some money to vacate in time isn't a bad idea at all. 

moneysavinghero

markelanduk said:

Hi all, thanks for the advice!
They're quite elderly and they're looking for rental accommodation from my understanding. They're motivated sellers so I'm hoping just the threat of pulling out will suffice. If it doesn't, I guess offering them some money to vacate in time isn't a bad idea at all. 

They don't sound that motivated.

Irishpearce26

Im not sure pulling out or offering them money will help the situation. The OP has said they are struggling to find anywhere to go into rental accommodation just like buying the rental market is pretty busy. The couple are elderly and as such i would imagine need to find somewhere that suits their needs. Surely buying a house so close to the deadline you would have factored in a contingency if you didn't meet the deadline? 

Thrugelmir

If there's not a suitable property to rent then no amount of pressure is going to make any difference.  How long ago was your offer accepted? 

xylophone

You mention that the seller is elderly and having difficulty in finding rental accommodation.
You might ask the estate agent to ask them to consider approaching a housing association/ almshouse/sheltered housing type scheme?

https://www.ageuk.org.uk/information-advice/care/housing-options/sheltered-housing/