shuttler Posted June 5, 2007 Report Share Posted June 5, 2007 Hi there everyone. I have a client who wants to buy one of my properties for £250k but does not have the total money right now as she is awaiting the completion of a house sale. she wants to move in to my property now and pay a monthly rent (for approx 3 months) and pay a cash down payment of £20k with the remainder to follow. I have agreed in principal that the rent money will be deducted off the total sale price. Can anyone give me some info on where I can get hold of some sort of an agreement form and what sort of rental document should I use. Many thanks Roy Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted June 5, 2007 Report Share Posted June 5, 2007 Why deduct the rent money from the total sale price !? Just give her a discount in proportion to her "level of ownership" 20k/250k X 100 = 8% as you are still the main owner and entitled to rent until the day she completes ! Your solicitor should be able to sort this one out for you, i think you will not be able to exchange on the deal without a completion date in the equation - all rent figs can be calculated and the final completion figure adjust to fit so give her 8% of the rent back NOT all of it !! Simon Link to comment Share on other sites More sharing options...
J4L Posted June 5, 2007 Report Share Posted June 5, 2007 I tend to agree with simon here and not take the whole rent off the final price. at the end of the day you'll still have to make the monthly mortgage payments so it'll cost YOU in the long run. I'd sign her in for a 6 month tenancy AND take the 20k 'deposit' for the sale and make this 'non-refundable'. This should prevent any problems with her trying to go back on the deal. Again, as suggested I'm sure your solicitor can draft something up to cover all this. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted June 5, 2007 Report Share Posted June 5, 2007 If you can get her to do what j4l suggests i would seriously question her sanity ! Also if the deal does go Txxx Up you will have her stuck in the prop for 6 mths preventing a vacant possesion sale to another party (although you could still sell it tenanted) As she is stuck with paying rent for 6 months and could lose her 20 K if an an exchange is not made - This as stated cannot be done without a completion date being set (albeit that by mutual agreement it can be changed at later date - I would do the norm and set completion date with big penalty clauses if late) Without the exchange i would think that only an"option" to purchase the property could be created ??? Need professional EXPERT(!!) advice this though.......... Sign her up on 3months AST- exchange immediately and relieve her of the 20K- set completion for 90 days from exchange with penalty clauses for being late plus discuss forfeiture of deposit terms with your solicitor in the event that all doesn't go to plan.. charge 92% of market rent (or 100% and split with her as "part" owner 8%) - A friend of mine sold a house at auction and received a 17K deposit almost immediately - the buyer has has not been heard of since - that was some 9 or 10 years ago !!!!! He ws very happy with the deal and still owns the property! Don't think there is a problem with this .......anyone............. Simon Link to comment Share on other sites More sharing options...
shuttler Posted June 5, 2007 Author Report Share Posted June 5, 2007 Thanks for all the info. Can I move the tenant in on a 3 month AST (I thought that 6 months was the norm for getting someone out. ? Also what do you think of me moving her in on a holiday let, if the 3 month AST is going to be a problem ? Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted June 5, 2007 Report Share Posted June 5, 2007 you could also used a fixed term lease - i would discuss this with your solicitor Fairly soon i'm sure Trenners (mark)will give his well educated opinion on this - think he may be holiday as he has not posted for a few days Simon Link to comment Share on other sites More sharing options...
J4L Posted June 5, 2007 Report Share Posted June 5, 2007 Surely 6 months is the minimum here isn't it?? Link to comment Share on other sites More sharing options...
GPEL Posted June 5, 2007 Report Share Posted June 5, 2007 AST's can be for any period of time up to 3 years. However, a court will dismiss a possession order if the tenant has been in occupation for less than 6 months. Link to comment Share on other sites More sharing options...
shuttler Posted June 5, 2007 Author Report Share Posted June 5, 2007 Do you have any views on a Holiday Let Agreement or Licence to Occupy agreement Link to comment Share on other sites More sharing options...
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