Break the chain and rent?

FCUK

Hi all

I've been a lurker the last few weeks, decided to finally make a post. 

I'm a first time buyer and have found a place. I'm almost close to exchanging and setting a completion date. But this part of the process has now been going on the last week and half with no date set. The house I occupy is owned by family and live here rent free. This house is currently being sold too and the buyers are ready to complete. But can't do so due to my place yet having no completion date. It's a very very small chain if that's what you can call it. The buyers have been apparently ready since start of June and been renting since then ready to move into this house. They obviously can't move in til i've moved out and it's almost certain it'll be all completed within 4/5wks. They have now got to point where they have begun to pester us and my family wanting to complete which I get. They are solely waiting on me, the place I've bought is empty but last few enquiries haven't been answered yet hence no completion.

My family have suggested to temp rent, but isn't this a risk? Going from a place I pay no rent or anything to place I would have to? I'm cash buyer so have all the funds ready but having to rent would sip into that. The buyers for house I occupy haven't suggested they will pull out but have often said we are ready and our mortgage will expire. They've used that line 'mortgage expire' since May, we're now July so clearly I'm taking that as a pushing tactic.

Any advice guys? 

kimwp

You're not really breaking the chain because you aren't dependent on selling your house to get the next house. You're just (sorry) an awkward squatter.

And it's not a risk for you to rent, a risk is where there is uncertainty and you'll definitely have to pay rent. The risk is that if you stay (rent free), then your family loses their buyer. 

I think mortgages in principle take six months to expire. Presumably they are paying rent while they wait for you to move out, so you are asking them to pay rent instead of you. 

If your family, who haven't been charging you to live there, are asking you to move out, then you should probably move out.

FCUK

The house also belonged to my mum who sadly passed away, hence the no rent. The house is owned by 4 sisters, one of them being my mum. Its now divided between the 3 sisters with me getting may mums share once sold. The estate agent are clearly using typical tactics to get their money ASAP with the buyers only ever once saying we're now renting and our mortgage will soon expire.

I just don't want the hassle and pressure from all sides and unsure of which direction to go. Given my property should be ready to complete soon renting would only be risk if any further problems arises, which you never know could happen. They potential new owners live in London and have been searching in our area for over 7mths before finding this house, something tells me they aren't pulling out.... 

kimwp

If you are sure of your completion date being soon, why not set the completion date for the house you are living in? 

secla

how good is your relationship with your aunts ? how good would that relationship be if the sale fell through ?
Tough call, Any rental that short term you could find would be a holiday rental and we are into prime summer now so prices will be high + you will have 2 x moving costs to deal with.

FCUK

That's extremely risky. To set date when I don't have one? The seller agreed to date of 18th July, next week but that was just verbally agreed to, I don't want to tempt fate. I just know it can't be much longer then 5wks at a push 

silvercar

The buyers mortgage may well be expiring. One option would be to temporarily move in with an aunt or to go on holiday for a few weeks. I can see your reluctance. It’s a question of how much you and your aunts are prepared to risk losing your buyers.

FCUK

@secla I have wonderful relationship with them. The four sisters were very very close and were a very close family. If the sale feel through, I can't imagine it affecting our relationship at all, since losing my mum the sisters have basically formed a ring of fire around me, they have been amazing. So nothing can break the relationship I had with them. Moving twice, the expense of it all, just doesn't bode well at all. The buyers as I mentioned live in London and will be commuting, I cannot imagine they'll drop this house in order to start from scratch considering how close to the end we are, I mean it took them 7mths to find this house. The area I currently live in is called Prime Minister area, houses are snapped are very quick and we've had people trying to hone it to toppled the current buyers so we would always find buyers.

Hard call for sure, but right now I need to think of my mental health and so what's right for me and that seems to be waiting this out. I am incredibly close to completion,, it's just the last several outstanding quries relating to a management company because property I'm buying is leasehold but I'm also buying a share of freehold. It's a gigantic house spilt into two large flats... So it's been a complicated process due to the leasehold and fact I'm buying part of the freehold of that makes sense