Offering to pay buyer's final month rent

MINNIEMOMO

We have just found out today our buyers need a month's notice between exchange and completion, as they cannot afford the rent and mortgage to overlap. However, we need this purchase to go through faster for personal reasons.

Is it okay to offer to pay for their month's overlap of rent and mortgage to speed it up? I can't imagine they'll say no but I didn't know if it was a normal thing to do.

theartfullodger

Just drop your selling price by that amount.

Anything else may lead to investigation of dodgy dealings (eg lender ..)

FTB_Dan

theartfullodger said:

Just drop your selling price by that amount.

Anything else may lead to investigation of dodgy dealings (eg lender ..)

Unfortunately this doesn't result in an extra x amount in the pocket for the buyer (at least if they are getting a mortgage).

propertyhunter

Does reducing the house price actually give them that cash in hand? Doesn't it depend on their deposit amount and LTV for the mortgage?

I'm more concerned that the buyer is really up to their neck that they can't afford an overlap in rent and mortgage costs for one month. It's probable that they don't want to pay additional rent for a month (rather than can't afford it) - which is a perfectly reasonable thing. 

MINNIEMOMO

We have the funds available to just give them to cover a final month of their rent as a goodwill gesture, we are very close to exchange but they refuse to complete any quicker than a month and we simply cannot delay any further.

p00hsticks

theartfullodger said:

Just drop your selling price by that amount.

wouldn't that then result in a lot of the mortgage and other paperwork having to be redone ?

propertyhunter

MINNIEMOMO said:

We have the funds available to just give them to cover a final month of their rent as a goodwill gesture, we are very close to exchange but they refuse to complete any quicker than a month and we simply cannot delay any further.

Do what you need to do. I agree with @p00hsticks, I don't think reducing the price will make this happen faster due to lender re-approval. Your solicitor can advise on the most appropriate approach given the timelines. 

warwick2001

You can offer an 'allowance' to be paid upon completion. We did this. Make the offer to the buyers, if they agree then instruct your solicitor to sort this into the contract.

When I mentioned this to my solicitor, there were no issues, and she acted as if it was a fairly normal thing to do.

I agree, knocking down the actual price of the house is pointless as it doesn't give the buyers actual money in their pockets, only a reduction in their mortgage.