Selling then renting

Daz_Cooksey

Hi, I have to sell my home as my partner and I have split up. I am also being made redundant at the end of July. I have yet to secure a new job and won't be able to get another mortgage until I do. So I have a situation where once I sell my home I need to rent for a period of time and even though I have not secured a new salary yet I potentially could be sitting on 80-100K ( redundancy + house sale ). Any advice for future planning? Thanks in advance. 

GDB2222

Sorry for you that all the bad news has come at once. 

I suggest getting a new job ASAP, even if it doesn't pay particularly well or isn't quite what you want. You are far more attractive to most employers if you are in work. Also, if you are selling up, do you need to stay where you are in the country?

Daz_Cooksey

No I can relocate but like to stay in the south if possible. I hear when you sell you cannot rent straight away to prevent us if house sale falls through, but we only get around a week or two to find somewhere suitable to rent? Seems a tall order in such a short space of time.

newsgroupmonkey_

GDB2222 said:

Sorry for you that all the bad news has come at once. 

I suggest getting a new job ASAP, even if it doesn't pay particularly well or isn't quite what you want. You are far more attractive to most employers if you are in work. Also, if you are selling up, do you need to stay where you are in the country?

So much this. Unless you have a particular reason to be in a part of the country, this is a great opportunity for a new start.

MaryNB

Daz_Cooksey said:

No I can relocate but like to stay in the south if possible. I hear when you sell you cannot rent straight away to prevent us if house sale falls through, but we only get around a week or two to find somewhere suitable to rent? Seems a tall order in such a short space of time.

You can ask for a longer period between exchange and completion to give you more time. But yes, you should not sign a tenancy agreement until you have exchanged. Once the tenancy agreement is signed by all parties it is legally enforceable so you can't back out, even if you haven't moved in.

From my experience renting, most properties got one the market within a month of the tenancy starting so 2 weeks isn't that short. If you have a pet or any specific requirements it may be a little bit harder to find somewhere. The bigger issue is however; that landlords and agents often require you to be in employment and earning an annual salary along the lines of 30x the monthly rent. It could be hard to rent if you don't have a job. 

Daz_Cooksey

As I understand it if I am without a job I could rent by paying six months up front?

MaryNB

Daz_Cooksey said:

As I understand it if I am without a job I could rent by paying six months up front?

They may accept this but they may not. There's no hard and fast rule. Assuming it's a 6 month AST, at the end of the 6 months the tenancy only ends if you chose to end it. The landlord cannot end the tenancy and it doesn't end automatically so they may be worried that you can not longer afford to pay after 6 months but will continue living at the property. 

GDB2222

It depends how much furniture you have, but you don't have to go into a long term rental immediately. There are hotels and AirBnB, plus storage for the furniture.