Q about selling then renting

moogyboobles

Hi,

I have just had an offer on my house, no chain so may be completed in 6 weeks or so.
We are planning to rent until we run out of equity. Hopefully by then I'll be in work and my husband be earning more.
I don't know the basics of what will happen. How long we will get the cash from the sale? How do we manage to give a deposit to a landlord before we move in when we need to move in the day we complete? Do they mind getting the money that very day? We can pay them upfront for a year if they want. Just not until we get the money from the sale. How do these things work?

harryhound

This is not a good start with your new landlord is it?
Will your bank allow you an overdraft for the deposit and the first month's rent?
If you were my tenant and a few days "short" with the rent, I might well agree to take a post dated cheque off you, but not at the start of our contractual relationship.

I have in the past collected a cheque for the proceeds from the solicitor on the day of completion and then raced to the high street to pay it in just before closing time.

You may be able to pay for high speed clearance and it could help if you and the solicitor both used the same bank.

moogyboobles

I don't have a landlord yet. Only just put the house on the market friday so this is all a bit new and in a bit of a hurry, didn't expect an offer already. What do people normally do when they rent after selling their own house?

Debt_Free_Chick

You need to dip into your savings for at least the deposit, any fee and the first month's rent. If you have no savings, then you'll need to save or borrow.

The money from the sale will be with your solicitor on the day of completion and then transferred to your bank account a few days later.

Remember that your solicitor will retain your fee if you don't pay it separately.

Numbnutz_2

moogyboobles wrote: »

I don't have a landlord yet. Only just put the house on the market friday so this is all a bit new and in a bit of a hurry, didn't expect an offer already. What do people normally do when they rent after selling their own house?

Most people can manage to find a deposit and a months rent. Can you not borrow it off family as they would know you were good for it ?

moogyboobles

I hope so or we will have to camp out in the car, not fun with 3 children! No way could we save that in just over a month, we are paying the mortgage still.

I expected somekind of special agreement for these situations, not that you literally have to move out and wait for the money.

Savings? haha I wish. We rob peter to pay paul. One of the main reasons for selling up. While I'm a stay at home Mum we might as well use our equity to make life better now than keep struggling. In a couple of years I'll be back at work.

mdj1

HI Moggy

My advice would be to be honest with the letting agents, i'm sure they have been through this before and can make arrangements for you. How much money will be left over after the sale? If it is a good amount, 10's of thousands, then you should look to invest this wisely, do so and you could see yourself paying much of your new monthly rent with the interest earnt on the savings!

clutton_2

if i got a letter from your solicitor which contained a "Solicitors Undertaking" explaining that £x would be available on x date i would happily sign an AST knowing that your rent would be paid in a few days time.

Debt_Free_Chick

clutton wrote: »

if i got a letter from your solicitor which contained a "Solicitors Undertaking" explaining that £x would be available on x date i would happily sign an AST knowing that your rent would be paid in a few days time.

That's really helpful -thanks C :T

It's helpful to know for future, similar questions. Cheers :beer:

moogyboobles

Thanks you so much. I'll ask my solicitors tomorrow about this idea.
We should have about 40K from the sale.

clutton_2

you are most welcome - may i suggest that you ask your solicitor also to take responsibility for passing the rent cheque onto the landlord directly from the Sales proceeds ? This means that the solicitor knows there are guaranteed funds. An "Undertaking" is an utterly Irrevocable Form of Authority - which means that if the client beggars off then the Solicitor has to make the payment (as described in the Undertaking) him/herself - this means most sols are cautious about signing Undertakings - but as long as the sale funds are in his/her client account, i cannot see there will be a problem.

let us know how you get on

good luck