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  • FIRST POST
    • bikeman17
    • By bikeman17 14th May 18, 7:35 AM
    • 189Posts
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    bikeman17
    Exchange/completion plus two weeks situation
    • #1
    • 14th May 18, 7:35 AM
    Exchange/completion plus two weeks situation 14th May 18 at 7:35 AM
    After 8 months we are ready to exchange and complete. However the seller is on a chain which we are buying form him to buy his next purchase. He calls me to say after completion he would like two weeks to renovate his next home as it needs work.

    We agreed he pays half my mortgage, council tax and service charge.

    What is the best way forward, what shall I advise him to do with the utility bills and anything else I should be aware of/do?
Page 1
    • anselld
    • By anselld 14th May 18, 7:43 AM
    • 5,815 Posts
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    anselld
    • #2
    • 14th May 18, 7:43 AM
    • #2
    • 14th May 18, 7:43 AM
    Speak to your solicitor first. This is a non-starter.
    • sammyjammy
    • By sammyjammy 14th May 18, 7:44 AM
    • 4,352 Posts
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    sammyjammy
    • #3
    • 14th May 18, 7:44 AM
    • #3
    • 14th May 18, 7:44 AM
    The best and only way forward is to rescind your agreement. This will be against the terms of your mortgage and could lead you to have a tenant in your house that you cannot easily remove.
    "You've been reading SOS when it's just your clock reading 5:05 "
    • bikeman17
    • By bikeman17 14th May 18, 7:48 AM
    • 189 Posts
    • 22 Thanks
    bikeman17
    • #4
    • 14th May 18, 7:48 AM
    • #4
    • 14th May 18, 7:48 AM
    I'm in good relationship with the seller, we've been in touch since day one of the paper work and I've contacted him many times to chase for things from his side.

    His a trust worthy man and his only moving across the road to a bigger house.

    Just not sure how to deal the bill side of things.

    He requires two weeks but I won't move in after another two weeks because I will need work done.

    Would you normally advise him to call all his utility providers and say his moving home, so there is no unexpected bills from my end?
    • anselld
    • By anselld 14th May 18, 7:56 AM
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    anselld
    • #5
    • 14th May 18, 7:56 AM
    • #5
    • 14th May 18, 7:56 AM
    The bills would be the easy part - he retains them in his name until he actually moves out.

    But seriously, this is a very unwise way to proceed. He may be honest, who knows, but you have to ask yourself why he would even consider asking for such a position. He must know it is a cheek to say the least.
    • da_rule
    • By da_rule 14th May 18, 8:07 AM
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    da_rule
    • #6
    • 14th May 18, 8:07 AM
    • #6
    • 14th May 18, 8:07 AM
    This is a terrible idea. No doubt the contract you!!!8217;re about to exchange on is on the basis of vacant possession. Therefore he will automatically be in breach of the contract on completion, but the issue is that you have acquiesced to the breach which will make enforcement of any subsequent breaches almost impossible.

    Also, as has been said, assuming you have a standard mortgage there will probably be a term that you are to occupy the property as your main or principle home and not let it out without consent. Therefore you will in all likelihood be in breach of your mortgage contract. Your solicitor (assuming they are also representing the lender) cannot allow this to happen as they have a duty to the lender, who is also their client.

    As you have mentioned service charge, is this leasehold? If so you may find yourself in breach of the lease by letting the property out without the freeholders consent.

    It also opens up a load of other issues such as you becoming a landlord, eviction procedures, tax on the income you receive etc.

    Also, what if the works overrun?
    • eddddy
    • By eddddy 14th May 18, 8:41 AM
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    eddddy
    • #7
    • 14th May 18, 8:41 AM
    • #7
    • 14th May 18, 8:41 AM
    Discuss this with your solicitor. (Your solicitor will say "no")

    You could end up in huge trouble if you go ahead with this.

    (For example, if your solicitor or mortgage lender finds out about this plan between exchange and completion, your mortgage offer will be withdrawn.

    You will be unable to complete, and the people higher in the chain might sue you for tens of thousands of pounds.)
    • elsien
    • By elsien 14th May 18, 8:44 AM
    • 16,738 Posts
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    elsien
    • #8
    • 14th May 18, 8:44 AM
    • #8
    • 14th May 18, 8:44 AM
    Why can't he put his stuff in storage and stay with friends/ in a cheap b&b for two weeks?
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
    • Cakeguts
    • By Cakeguts 14th May 18, 9:14 AM
    • 4,571 Posts
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    Cakeguts
    • #9
    • 14th May 18, 9:14 AM
    • #9
    • 14th May 18, 9:14 AM
    Your best way forward is to tell him that you can no longer allow him to stay in the house after you have completed. This isn't being unkind it is to protect you against having your mortgage withdrawn, him deciding to stay there longer than two weeks and you can't get him to move out and you becoming a landlord without a buy to let mortgage. Him paying half your mortgage means that you will become his landlord. This could end up costing you a lot of money.
    • CIS
    • By CIS 14th May 18, 9:18 AM
    • 10,574 Posts
    • 6,111 Thanks
    CIS
    After 8 months we are ready to exchange and complete. However the seller is on a chain which we are buying form him to buy his next purchase. He calls me to say after completion he would like two weeks to renovate his next home as it needs work.

    We agreed he pays half my mortgage, council tax and service charge.

    What is the best way forward, what shall I advise him to do with the utility bills and anything else I should be aware of/do?
    Originally posted by bikeman17
    The council tax charge will stay in his name anyway, not yours. As he is still living in the house as his 'sole or main residence' he remains liable until he actually moves out, regardless of the fact that you have completed.
    I no longer work in Council Tax Recovery but instead work as a self employed Council Tax specialist. My views are my own reading of the law and you should always check with the local authority in question.
    • Tom99
    • By Tom99 14th May 18, 9:33 AM
    • 2,397 Posts
    • 1,617 Thanks
    Tom99
    Don't do it, just say your mortgage co will not allow it as vacant possession is require on completion.

    "Sorry would like to help you old chap but............"
    • dunroving
    • By dunroving 14th May 18, 9:34 AM
    • 1,268 Posts
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    dunroving
    Just tell them, "Solicitor says no ...."
    (Nearly) dunroving
    • hazyjo
    • By hazyjo 14th May 18, 9:37 AM
    • 10,711 Posts
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    hazyjo
    I suppose you could move in and he could stay as 'a mate' with you (wouldn't want all his stuff left there though and would definitely move all my own stuff in!). But I 100% would NOT let him stay there on his own without you moving in. Absolutely crazy. Your lender will say no as will your solicitor.
    2018 wins: Single Malt Whisky; theatre tickets; festival tickets; year of gin(!); shoes
    • bikeman17
    • By bikeman17 14th May 18, 12:14 PM
    • 189 Posts
    • 22 Thanks
    bikeman17
    ok this arrangement between me and the seller is no longer required.

    Seller got a new agreement with his seller where they will exchange and get two weeks for re-decorating and then we all complete. This process has been approved by all parties including solictors.

    So we all will exchange by this week, so all monies are paid and no going back and complete 2 weeks later.
    • eddddy
    • By eddddy 14th May 18, 12:34 PM
    • 6,619 Posts
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    eddddy
    ok this arrangement between me and the seller is no longer required.

    Seller got a new agreement with his seller where they will exchange and get two weeks for re-decorating and then we all complete. This process has been approved by all parties including solictors.

    So we all will exchange by this week, so all monies are paid and no going back and complete 2 weeks later.
    Originally posted by bikeman17
    Excellent - so you're "off the hook".

    But, FWIW, I still suspect that the "trustworthy man" that you are buying from is telling you porkies.

    To do what you describe, the house he's buying must be empty. If it's empty, why would there be a chain above him (that you mention in your first post)?

    But assuming it's true, I wonder if the person with the empty house who has agreed to this really has checked with their solicitor? It's possible to do this, but most solicitors would advise against it.


    ETA...

    But none of this is your problem (unless it causes the chain to fall apart!!!)
    Last edited by eddddy; 14-05-2018 at 12:44 PM.
    • bikeman17
    • By bikeman17 14th May 18, 3:27 PM
    • 189 Posts
    • 22 Thanks
    bikeman17
    Place his moving in is vacant and met him and his family few times so there is no trust issue.

    His solicitor must have had this arrangement in place and all be happening after completing and then exchange after two weeks.
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