Vacant Possession requirements

Reevesey58

We are hoping to complete our purchase by the end of the month to beat the stamp duty window.  We are still awaiting all parties to exchange, so do not have a confirmed date. Our problem, and presumably that of many others, is that all reputable removal companies are already fully booked out for June.  We have raised the issue of completion with a physical removal date of 2/3 days later, with all parties remaining in their existing houses until that date. There are three in our chain and all are willing to do this.  However, we have been advised that this may be in breach of our purchaser's mortgage agreement which requires "vacant possession" of the property at completion.  We are willing to move out to a hotel for a few nights if we personally have to be out of the property and move our contents later.  I assume the requirements were put in place to avoid potential problems with sitting tenants etc.  If all parties in the chain of 3 are prepared to do this in freehold properties, are mortgage providers really going to cut up rough?  Is there anyway around this? If not everyone involved will have to pay the additional stamp duty.

user1977

You're still going to be in possession from a legal point of view (i.e. you've got the keys, and it's full of your stuff). You're as much in possession as you are when you go to the shops. Yes, everyone will just have to pay their tax.

AdrianC

The easiest way around it is to rent space in a self-store place, rent a van, and move your stuff out before completion.

No, of course you can't leave all your stuff in somebody else's house... which is what it is post-completion. How would you like it if you completed on your purchase to find the house still full of the vendor's stuff?

LWP

We are in similar situation, our buyer insists on completion by the end of the month but the vendor can't get any removals until second week of July... EA suggested exchange with different completion dates - our buyer doesn't mind if we stay after completion as he is not moving in.

You are right it is a breach of a mortgage agreement, are solicitors willing to to go ahead?

trance_abbey

Do you all have garages that can be made secure? If so maybe you can rent each other space in the garage for a week post-purchase so all your belongings can be stored and the house is empty at completion?

Reevesey58

Mutual consent seems to be the key to this. As stated, technically a breach, but a) we all agree this -so who's going to complain and b) is anyone (solicitor, mortgage provider) really going to look into it?

user1977

Reevesey58 said:

Mutual consent seems to be the key to this. As stated, technically a breach, but a) we all agree this -so who's going to complain and b) is anyone (solicitor, mortgage provider) really going to look into it?

The (buying) solicitors also act for the mortgage lenders, so they're not going to allow completion to happen on any basis which doesn't include vacant possession being provided.

Slithery

Reevesey58 said:

is anyone (solicitor, mortgage provider) really going to look into it?

Your solicitor doesn't just work for you, they work for your lender as well. They are legally obliged to report this to your lender who then won't agree to release funds or complete.

LWP

Slithery said:

Reevesey58 said:

is anyone (solicitor, mortgage provider) really going to look into it?

Your solicitor doesn't just work for you, they work for your lender as well. They are legally obliged to report this to your lender who then won't agree to release funds or complete.

Correct, this is what my solicitor told me when we were discussing similar options. However he was still willing to proceed with completion if the agreement between buyer/me/vendor happens under the radar.

I guess in your case it's up to solicitors, as far as they are concerned you complete and move out.

es5595

I highly recommended you don’t discuss this with your solicitors whatsoever. 

It’s exactly what “my sisters” chain (and countless others) are doing. You can gauge whether you trust the others, it wouldn’t hurt to ask to see confirmation of the removals company booking, and go ahead. 

btcp

All "reputable" moving companies are booked but what about local man & a van? We booked one, and going to pack all our things ourselves a night before. Also the advantage is that they are cheaper   They may need to drive twice if cannot fit all in one load, but it's still going to be the same day.