Being pressured to exchange/complete same day but let the current owners live in the property!!

housebuyer143

Twins said:

user1977 said:

Twins said:

@dimbo61 those are the conditions set by the bank in the BTL Mortgage offer, or that's how the Solicitor is saying.

They say that you need to complete your remortgage on the same day that you complete your purchase. Your lender doesn't care when you exchange, so where is the "same day exchange and completion" coming from?

It's coming from the Solicitor, well actually from both solicitors as we have one instructed for the BTL and one for the residential and both saying the same thing.  However, our broker is saying something else.   He's saying he's done other BTL's/residential mortgages before and never come across this condition before so I feel like I'm stuck in the middle whilst all the time I'm getting immense pressure from the estate agent to go ahead with this a same day exchange/complete which we do NOT want to do. 

At this point of time my mental health has taken such a beating I am wondering if all this stress is worth it.

I am really not sure how the estate agents can expect you to complete on a house someone still lives in for an undisclosed amount of time. 

If the vendor needs your money for the deposit, they need to arrange to move out the house so you can complete. 
So the solicitors are saying you can't exchange in advance with competition next month? That does seem very strange tbh if that's the case 

Annisele

Twins said:

The estate agent is pressuring me to go ahead with the same day exchange/completion and to let the current owners stay in the property until the end of November which is the earliest they can move out. 

Is the estate agent proposing that his clients pay you any rent until they move out? If not, how kind it would be to give a gift of several weeks/months/years of free accommodation to these people you don't know.

If the estate is proposing that his clients pay you rent, then that would sound remarkably like a "sale-and-rent-back" arrangement. If you don't already have all the relevant permissions - and I assume you don't, or you wouldn't be posting about this - there's a risk you'd be breaking the law. (I'm thinking of sale and rent back, regulated activities, and financial services regulation). NB I'm not saying you would be breaking the law - or that anything bad would happen even you did break the law - only that I think it's a risk, and one you'd be foolish to take in these circumstances.

Twins

Annisele said:

Twins said:

The estate agent is pressuring me to go ahead with the same day exchange/completion and to let the current owners stay in the property until the end of November which is the earliest they can move out. 

Is the estate agent proposing that his clients pay you any rent until they move out? If not, how kind it would be to give a gift of several weeks/months/years of free accommodation to these people you don't know.

If the estate is proposing that his clients pay you rent, then that would sound remarkably like a "sale-and-rent-back" arrangement. If you don't already have all the relevant permissions - and I assume you don't, or you wouldn't be posting about this - there's a risk you'd be breaking the law. (I'm thinking of sale and rent back, regulated activities, and financial services regulation). NB I'm not saying you would be breaking the law - or that anything bad would happen even you did break the law - only that I think it's a risk, and one you'd be foolish to take in these circumstances.

The EA hasn't proposed anything other than letting them stay in the house and telling us they'll keep it in "show house condition".  They haven't said anything about rent and we haven't even considered anything like that.   I just don't want to go down that route but thank you for putting it so plainly about what it looks like.   EA's are scum and will do anything for their commission.

Neil49

We were in a similar situation a few years ago when moving into a new build and we simply moved into rented for a few weeks to ensure both our sale and ongoing purchase were successful.

Ok, it's an inconvenience and more costly with furniture removal etc but that's life and that's what your sellers should be doing.

Given the downturn in the property market and predicted falls in value I would start talking to the EA about reducing your offer. Hopefully that may give him the incentive to sort this out asap.

Regardless of that, no way should they remain in the (your) property after completion - just insist that they vacate the property by 3pm at the latest.

SusieT

I would just tell the estate agent that you will not complete without vacant posession. If the seller wants earlier completion on the sale then they can move into rented or air bnb and put their belongings into storage. 
There is no way I would consider completing without vacant posession.

Titus_Wadd

Not really relevant to this thread, but I'm just curious, is this the same house you posted about in Oct last year?  Maybe I missed the intervening chain of events?
Regardless, not in a million years would/should your solicitor allow the vendors to remain after you have completed.
Vendors problem to solve not yours, plus the EA works for the vendor,  so he would promote any way to push through the sale to completion. 

TadleyBaggie

Titus_Wadd said:

Not really relevant to this thread, but I'm just curious, is this the same house you posted about in Oct last year?  Maybe I missed the intervening chain of events?

They posted in May that they had pulled out if that one.

flashg67

I'm fairly sure your mortgage will require vacant possession. Plus you're responsible to insure the place from day one - I'd suspect it would be difficult/impossible/expensive to insure a house you own, but don't live in, and have no official rental agreement or permission to rent from your mortgage provider?

zagubov

In parts of the UK they'd be expected to move into short-term rental etc. as a matter of routine and chains are discouraged.
There's no such thing as vendors staying in "their" house while it becomes your possession.
Tell them to get organising temporary accommodation.

[Deleted User]

Twins said:

user1977 said:

Twins said:

@dimbo61 those are the conditions set by the bank in the BTL Mortgage offer, or that's how the Solicitor is saying.

They say that you need to complete your remortgage on the same day that you complete your purchase. Your lender doesn't care when you exchange, so where is the "same day exchange and completion" coming from?

It's coming from the Solicitor, well actually from both solicitors as we have one instructed for the BTL and one for the residential and both saying the same thing.  However, our broker is saying something else.   He's saying he's done other BTL's/residential mortgages before and never come across this condition before so I feel like I'm stuck in the middle whilst all the time I'm getting immense pressure from the estate agent to go ahead with this a same day exchange/complete which we do NOT want to do. 

At this point of time my mental health has taken such a beating I am wondering if all this stress is worth it.

It doesn't end there !
The stresses of home owning never stop !

It's not easy to take the emotion out of it but this is one transaction in a huge scheme - the businesses involved are detached from it and if you can alter the way you look at this it will ease your anxiety issues.