Moving from owning to renting - advice please!

nat_

We had an offer accepted on a house a few months ago (after accepting an offer on ours), but our seller is slowing things down. He's a cash buyer and so doesn't see the need to rush, even though our buyers mortgage offer ends in mid-Feb (ours is April). He has zero consideration for how the mortgage rates are for us and our buyers - we will not be able to afford a new mortgage if our offers expire. He won't go and rent temporarily, and is offering £50k less on houses and having offers rejected because of that. It sounds like he doesn't even know where he wants to live or what he wants from what I'm hearing. 

We are moving to a completely different area to be near to family as we need help with childcare. We don't want to lose our buyers and know if we stay put we'll lose value when the market crashes so we're thinking of renting for a year instead. Also were on a tracker because our fixed rate ends... and we all know how awful that is! So were eager to get out! Has anyone done this and have any advice? I don't even know when to begin looking. We need to be out of our house by early February at the latest ideally. Other people must be doing this because of what's going on!

Is there an issue with having our deposit in our bank too? It'll be about £140k. Thanks so much 

TheJP

Its extremely difficult to go into temporary rentals just to satisfy a buyer, most rentals are now minimum 12 months and are few and far between.

The mortgage rates will be pretty similar in a years time and id guess you'll spend more money renting for a year with no gain.

Your seller doesn't have to consider your circumstances, they want to find the right house for them. If you don't like this then you can pull out of the sale and find another property.

Mutton_Geoff

There are plenty of other options for short term living. I had to do this last year and spent over 3 months in a combination of Air BnB, hotels, holidays and weekends away at friends/relatives I hadn't seen for years. Most of my stuff was in storage with a self store unit being used as a large wardrobe as I moved between holidays/work etc.

£140k should be split in half across two instant access savings accounts for protection.

LegallyLandlord

I agree that most landlords look for a commitment of 12 months for a tenancy.

Airbnb is an option, and if you see any properties you like, you might approach them direct on the Airbnb messaging service to see if you can rent for 3-6 months. Chances are it'll take you six months to find something and complete in any event. If you're moving to an area with more demand in the summer, they might be happy to take it off airbnb and let you stay there over the winter.

It's also worth approaching local letting agents to see if any landlords would consider a shorter let, for a higher rent. It may end up with you staying for 6 months in any event.

You may be doing yourself a favour as property prices are likely to go down next year. Now the swap rates are stabilising, new mortgages might trend down too.

I hope that helps!

TBagpuss

It doesn't sound as though he is very serious about moving.

I would start looking for a different property if I were you. Let the agents know you are doing - it may focus your seller's mind if he thinks he risks losing the sale and if he gets his act togethebefore you find an alternative property then great, you can go ahead with the current purchase, if not, tjhen the sooneryou find aan alternative the bette.

It's frustrating, and it does mean you lose the money you have already spent on searches and surveys, but if he can't r won't progress then it may be best to cut your losses and move on. I apprecuiate that this may be difficult depsneing on what the market is like in the area you are moving to, but at the vey least  consider it. 

Mutton_Geoff

LegallyLandlord said:

I agree that most landlords look for a commitment of 12 months for a tenancy.

It's also worth approaching local letting agents to see if any landlords would consider a shorter let, for a higher rent. It may end up with you staying for 6 months in any event.

I thought most ASTs had a 12 month term with 6 month break clause and two months notice such that you could serve notice in month 4 to only stay there a total of six months. Without offering a higher rent.

TripleH

We moved owned to rented to owned.

We were moving 200 miles so it made sense.

If you don't know an area then renting for a year makes sense so you buy in the right place for your lives (commuting a longer distance may be quicker due to traffic flow for example). Or it helps you find the best place to live depending on yours/ kids lives once established.

Packing items into storage is slso a great way to declutter. If you don't miss an item in a year, do you need it?

The length of rental contacts is a downside as you may be tied there for a year, but it gives scope to find the right place and do it up before you move in (finances permitting).

Premium bonds and NS&I are another good way of putting your money to 1 side securely (I have no affiliation with them).