Buying a house, Vendor wants to rent short term

afterthoughts

Hi all,

I'm in the process of buying a house, I'm a first time buyer and this is a cash purchase.

The vendor has made contact to say they've alot of work to do on the property they are purchasing and asked if I would consider renting back to them for few weeks.

The house is in great condition and needs minimal decoration, they seem like great home owners. It'd be to my benefit as I don't plan to move in imminently.

If a rental agreement isn't possible, would there be any other way around it to benefit both parties? ie. agree a completion date and ask for a reduction in their asking price?.. but then what if they need the money from the transaction to complete their onward transaction? I've no idea how this all works

Just wondering if this is possible and if there's any legal implications?

Thanks

TheSpectator

I wouldn't entertain it, there's a reason lenders insist on vacant possesion when you are buying with a mortgage. The fact you are a cash buyer shouldn't change that.

What happens if a few weeks, becomes months?

What does your solicitor say? If you don't need to  move in straight away then delay the completion. 

Keep_pedalling

Do not do it you have no idea how long this would go on for, as as will as being lumbered with the responsibilities being a landlord brings you could end up spending a fortune getting them evicted.

I would politely tell them that you need to move in ASAP even if that is not true.

user1977

They can find somewhere else to live, doesn't need to be your risk. How would you be dealing with all the hoops you need to jump through to legitimately become a landlord? Not worth it.

Brie

I agree with the others that it is not a great idea.  What happens if their stuff goes on and on and they don't want to move out?  You'll have to set up some sort of tenant/Landlord agreement and should they delay it may take you months to get in.  So say, sorry, but not.  Politely.  

afterthoughts

Thanks guys, it makes alot of sense!

I just thought it'd be nice to make a bit back on the property whilst it stands vacant for a couple months. I didn't want tenants, but this seemed easy and they've really looked after the home.

I wonder if they'd agree to a reduction in asking price if we agree to push the completion date back?

Keep_pedalling

afterthoughts said:

Thanks guys, it makes alot of sense!

I just thought it'd be nice to make a bit back on the property whilst it stands vacant for a couple months. I didn't want tenants, but this seemed easy and they've really looked after the home.

I wonder if they'd agree to a reduction in asking price if we agree to push the completion date back?

I would not do that either, more time for things to go wrong.

TheSpectator

afterthoughts said:

Thanks guys, it makes alot of sense!

I just thought it'd be nice to make a bit back on the property whilst it stands vacant for a couple months. I didn't want tenants, but this seemed easy and they've really looked after the home.

I wonder if they'd agree to a reduction in asking price if we agree to push the completion date back?

But letting them live in after the sale you do have tenants who would have rights.

SadieO

I agree with others that this is a bad idea, and your solicitor should advise against it. It would make you a landlord, with all the responsibilities this entails, and give them all the rights that tenants have - even if you don't have a written tenancy contract. What if damage occurs to the property during this time, will you pay for it or expect them to? What if they refuse to move out?? Maybe not even in an arsey way, but just an "oh, it'll just be another week..." kinda way? What would you do if they just kept on saying it?

Mr.Generous

I have had this request, a sale that took months to go through. Exact same reason given. Apart from the gas safe, electrical testing and landlord insurance (Tenants have to be professionally vetted/checked) there's just the vacant possession issue to overcome if you want to go ahead. 

I'm an experienced landlord and I wouldn't touch it. I declined and they rented elsewhere. Day 1 I discovered the shower didn't work, and chatting to a neighbour they mentioned the oven had packed in. I checked, and indeed it had. I did wonder how long it would have taken my occupier / tenant to report these issues to me and expect the landlord to resolve as they had occured during the tenancy. In the scale of things it was only about £350 of work to replace both, so not the end of the world.

I hate being taken for a mug so glad I didn't accept. Easy jobs on an empty vacant house, always a bit more difficult with a tenant.Very hard to get someone out if they don't want to leave, and very costly. I hand pick my tenants.

thegreenone

afterthoughts said:

The vendor has made contact to say they've alot of work to do on the property they are purchasing and asked if I would consider renting back to them for few weeks.

"A lot of work" to be done in a few weeks ..... mmmmm.......  They need to get a bridging loan to buy the new property and find somewhere else to live while they are doing the work.  Not your problem.

For you:
a)  don't leave the house empty for too long
b)  get empty house insurance or at least let your insurer know
c)  cctv or similar that links to your phone (Blink or similar from amazon)
d)  lights on timers
e)  visit the property regularly