Living in sold house after completion
Discussion
We've sold our house to first time buyers and they want to complete before the new stamp duty rates come in end of March, as it'll save them £6k.
The people living in the house we've bought won't be out of it until the middle of April.
The people who're purchasing our house have said they are happy for us to stay in the house until our sellers are out mid-April.
Are there any issues with doing this we should be aware of? As long as buyer/seller have contracts signed and dates reflect the above, I imagine it'll be OK. Any advice welcomed, big thanks.
The people living in the house we've bought won't be out of it until the middle of April.
The people who're purchasing our house have said they are happy for us to stay in the house until our sellers are out mid-April.
Are there any issues with doing this we should be aware of? As long as buyer/seller have contracts signed and dates reflect the above, I imagine it'll be OK. Any advice welcomed, big thanks.
We did this when the Covid stamp duty cut was coming to an end (we were selling but not buying yet)
Take legal advice, but as far as I saw it, the risk all sits with the buyer in this situation. Our buyers were mortgage free though, so that probably made it easier, a mortgage co might take a different view!
Take legal advice, but as far as I saw it, the risk all sits with the buyer in this situation. Our buyers were mortgage free though, so that probably made it easier, a mortgage co might take a different view!
Like a previous poster says I would be very surprised if their Solicitor doesn't raise this as a big red flag to them but if the money is critical to them they may well override this advice.
I know a young couple moving from their first to their second home and I was surprised at how close they were cutting it financially. Foregoing searches and surveys, loading up credit cards and borrowing from family members to get it across the line.
As for the risk to yourself, you have to consider all the things that could happen to the house during this time and what the consequences are... This could range from spilling a glass of red wine on the living room carpet to the boiler breaking beyond repair to a burst water pipe causes significant damage or a fire taking the whole place down.
Who is then responsible for the ensuing fallout, the new owners will want reimbursed, possibly compensated.
Personally (assuming funds allow) I'd look at what the financial benefit is to the purchaser, consider what moving into an airbnb etc. would cost you (factor in the added headache as well) and propose giving them some money to delay the completion to a date that suits yourself but also softens the loss of the stamp duty saving to them.
I'm assuming you are exchanging contracts at a date prior to the completion date.
I know a young couple moving from their first to their second home and I was surprised at how close they were cutting it financially. Foregoing searches and surveys, loading up credit cards and borrowing from family members to get it across the line.
As for the risk to yourself, you have to consider all the things that could happen to the house during this time and what the consequences are... This could range from spilling a glass of red wine on the living room carpet to the boiler breaking beyond repair to a burst water pipe causes significant damage or a fire taking the whole place down.
Who is then responsible for the ensuing fallout, the new owners will want reimbursed, possibly compensated.
Personally (assuming funds allow) I'd look at what the financial benefit is to the purchaser, consider what moving into an airbnb etc. would cost you (factor in the added headache as well) and propose giving them some money to delay the completion to a date that suits yourself but also softens the loss of the stamp duty saving to them.
I'm assuming you are exchanging contracts at a date prior to the completion date.
I would very much doubt the purchasers Solicitor would even agree to this.
As already stated you would need some form of contract to protect yourself ( and your purchaser ) but there is also then the issue of what happens should for whatever reason your own purchase not go through.
The “ easiest “ solution would be to try and get your purchase timetable onto the same footing.
As already stated you would need some form of contract to protect yourself ( and your purchaser ) but there is also then the issue of what happens should for whatever reason your own purchase not go through.
The “ easiest “ solution would be to try and get your purchase timetable onto the same footing.
ThingsBehindTheSun said:
What happens if you sell your house and the house you are buying falls through?
Personally there is no way I would do this to potentially save someone else £6K for no benefit to me, remember no good deed goes unpunished.
They seem to be getting the significant benefit of somebody else paying for their house, but allowing them to continue to live in it.Personally there is no way I would do this to potentially save someone else £6K for no benefit to me, remember no good deed goes unpunished.
Solicitors wont permit this, as below, x10 if a mortgage is involved.
bennno said:
ThingsBehindTheSun said:
What happens if you sell your house and the house you are buying falls through?
Personally there is no way I would do this to potentially save someone else £6K for no benefit to me, remember no good deed goes unpunished.
They seem to be getting the significant benefit of somebody else paying for their house, but allowing them to continue to live in it.Personally there is no way I would do this to potentially save someone else £6K for no benefit to me, remember no good deed goes unpunished.
Solicitors wont permit this, as below, x10 if a mortgage is involved.
They can advise, in this case strongly advise and maybe even call the idea "stupid" but if the purchaser is OK with it they could do go through with it.
When I bought my first place in 1999, the sellers had some sort of issue and asked if they could stay on in the flat a couple of days past completion. They were a bit naughty as they had my phone number and asked me directly without either set of solicitors knowing. I agreed as it didn't make any difference to me, I still had my room at my parents'. I was a bit worried in case any problem came of it, but it was fine.
Thinking about it, if there's a chain and all the deals complete on the same day, it must be quite a challenge getting all the legal processes for every deal to co-ordinate.
Thinking about it, if there's a chain and all the deals complete on the same day, it must be quite a challenge getting all the legal processes for every deal to co-ordinate.
I have done this. We in effect rented the property back for 6 months.
You need to arrange this with the agent and the buyer not the lawyers. As soon as you do there will be a world of pain.
1. Your lawyers need to conform to the purchasers lawyers vacant possession. In this scenario they can't.
2. The buyers won't have a buy to let mortgage which they would require to let it.
This will kill the deal.
So if the buyer will agree do it on the quiet but if not there is really close to no chance that the lawyers will ever agree to it
A first time buyer will ( rightly to be fiar) want their lawyers approval.
Air bnb is your friend.
You need to arrange this with the agent and the buyer not the lawyers. As soon as you do there will be a world of pain.
1. Your lawyers need to conform to the purchasers lawyers vacant possession. In this scenario they can't.
2. The buyers won't have a buy to let mortgage which they would require to let it.
This will kill the deal.
So if the buyer will agree do it on the quiet but if not there is really close to no chance that the lawyers will ever agree to it
A first time buyer will ( rightly to be fiar) want their lawyers approval.
Air bnb is your friend.
gotoPzero said:
Simple solution is split the 6k 50/50 and you move out, where you go is not their problem or for how long - you just need to make the 3k cover it - but like I said not their problem.
I think that this might be the basis for a solution but it might mean double moving costs (or plus 50% if the boxes go into storage for a fortnight,) so a 65/35 split in the OP's favour might be fair. (Of course then the buyers might think that it's not worth it to save them £2K but that's their choice - I assume that they can't complete on another property in the timeframe so you have a strong hand.)scot_aln said:
We did exactly this but for just a week and the estate agent pulled together some sort of short term rental agreement. They were benefiting from 2 in the chain so were eager to make anything happen.
It will have been a licence to occupy. But the ops purchasers would be unwise to go down this route. It is very hard to evict residential occupiers.
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