Vendor paying our rent to speed up completion

jacko552

Hi Everyone,

My wife and I are FTB, so currently renting. Our rental payment just went out on the tenth and our little chain of three has miraculously come ripe, and both vendors want to complete ASAP. The only spanner in the works is because of the timing, we have our tenancy until August 10th. They have offered to pay for one month of our rent in order to complete next week.

I put this past our solicitor who doesn't think it's a good idea as we'll have to report it to our lender which will take a while and may result in the house getting devalued, leaving us with no benefit. Should I just mention it no further with the solicitor and go ahead? One member of the chain is pregnant and due in August, which is why there's such a rush on.

eddddy

jacko552 said:

I put this past our solicitor who doesn't think it's a good idea as we'll have to report it to our lender which will take a while and may result in the house getting devalued, leaving us with no benefit.

What the solicitor means is your lender might reduce your loan offer by (roughly) the value of the rent payment.

So you won't end up with more money in your pocket on day1 - but you'll have a slightly smaller mortgage, so slightly lower monthly repayments.

jacko552 said:

Should I just mention it no further with the solicitor and go ahead? 

Technically, you'd be breaching your mortgage t&cs.

But the risk is that one party could be swindled. For example,...either...

• You get paid the rent money before exchange of contracts, then you decide not exchange contracts

• You expect to get paid the rent money after exchange of contracts, so you exchange contracts but you never get paid

And nobody can sue the other party in court for their money, as they'd have to admit they were doing a dodgy deal.

EssexHebridean

Also - you have already mentioned it to your solicitor,  so that ship has sailed. Presumably they also act for your lender - in which case, if they have reasonable suspicion this is what you are doing they are duty bound to report to their client - ie your lender. 

anselld

Have you asked the Landlord if they will consider early surrender?

gwynlas

There is nothing stopping you going ahead with exchange and completion, many people have an overlap in order to redecorate whilst house empty. You have made a mistake by mentionning it to your solicitor but you can still go ahead without rental payment. What would be a good outcome would be to receive a Welcome to your New Home card with a substantial gift following completion.

propertyrental

Having an overlap between Completing on purchase and ending a tenancy is very common. Just one of the many costs associated with housing. Many people consider it an advantage as it gives a much more relaxed move.

But... have you actually served notice to end your tenancy? Is your tenancy

* in England?

* fixed term (exact dates)?

* or periodic (rolling) (exact dates please)?

* What date did you serve notice, to expire on what date?

* you cannot just stop paying rent and assume that ends your tenancy.

Of course, as suggested above, there's nothing to stop you and your landlord agreeing any date you both agree to end the tenancy eg tomorrow. But LL must agree.