glock Posted May 25, 2011 Report Share Posted May 25, 2011 Hello everyone! A question I can't seem to get a straight answer on: I have just accepted an offer to sell my house which is currently vacant after a period of letting. The buyers (first time) have just had another deal fall through days before exchange and their current rental agreemnt hasn't been renewed. A few days after accepting the offer they are now asking to rent my property until the purchase is complete as they are effectively homeless and moving to the area from the other side of the country for work. I am familiar with the SAT/AST agreements but am worried that if the sale falls through for any reason worst case I could potentially be stuck with tenants until I can evict after the 6 month window has elapsed. Do you guys know of any other contracts that could be put in place that would be appropriate (I'm not sure if any tenancy agreements are automatically invalid/overruled by government housing acts if they are anything but AST for residential property). I've looked at holiday let, but this won't work as this would be their primary address so currently going to probably decline this offer and get the house back on the market. Any thoughts much appreciated... Link to comment Share on other sites More sharing options...
Richlist Posted May 25, 2011 Report Share Posted May 25, 2011 so currently going to probably decline this offer and get the house back on the market Wise decision and the one I would have chosen. You could take a chance and it might all work out well........but then it might all go wrong. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted May 25, 2011 Report Share Posted May 25, 2011 so currently going to probably decline this offer and get the house back on the market Wise decision and the one I would have chosen. You could take a chance and it might all work out well........but then it might all go wrong. not a chance !! & loose 6 weeks rent plus the sale ?! Why on earth would you want to do this ? request immediate exchange on sale with 5-10% dep paid (of purchase price) with completion scheduled for 6-8 weeks later - and 6 weeks rent up front - also a £2k returnable deposit on the AST . Failing that help them find a b&B to hold the deal together. Link to comment Share on other sites More sharing options...
Melboy Posted May 25, 2011 Report Share Posted May 25, 2011 Welcome back Rodent. I think I am right in saying that there wouldn't be a conveyancing solicitor in the country that would advise you to allow any rental prior to exchange of contracts. Mel. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted May 26, 2011 Report Share Posted May 26, 2011 Hi Mel Hope all is well ! Rent b4 exh - not a good idea, but with exch in place and (dep held) in buyer/renter pulls out then you keep the cash ...also large dep on AST there is always a way ! The Rodent Link to comment Share on other sites More sharing options...
Melboy Posted May 26, 2011 Report Share Posted May 26, 2011 Hi Rodent.....good to see you back again after long absence. Talk amongst yourselves everyone....... I am back into re-developing property again but in a much smaller way then previously. Quite enjoying it probably because I am doing most of the work myself with no pressure on completion times. Just gone back into rentals again having bought 2 nice properties in the last 9 months....for the same reason as every one else....no returns on capital savings anymore and no thanks Nationwide 0.20% interest rate on my lifetimes wedge is quite appalling. I have had 3 viewings on the property I am doing right now and all persons were investors for the reasons above but it does make you laugh..... they were all looking for something for nothing and all 3 were going to be Newbie Landlords.....nothing wrong with that....we all started somewhere but did they have some weird ideas on what they were going to do and how they were going to go about it. Things I have noticed in my part of the World......... No 1st time buyers. Plenty of money investors around. Lack of property for sale. Lots of people looking for good rental property at reasonable rents. (I have had 4 letters pushed through my letterbox on the property I am doing up asking if I will be renting it out!) Mel. Link to comment Share on other sites More sharing options...
Gee Posted May 26, 2011 Report Share Posted May 26, 2011 Welcome Back Rodent Hopefully you will stay awhile and keep making us think and smile with your thoughts (and repartee!). I didn't quite get this problem. If the first time buyer is a first time buyer, what deal fell through? If it was a mortgage deal, I can't see the buyers solicitor letting them exchange contracts until everything is settled. If the buyer is not a first time buyer, then the same still applies or am I missing something? Gee Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted May 26, 2011 Report Share Posted May 26, 2011 Hi Gee Hope all is well with you! If Buyer was a "few days from exchange" on prev del that fell thru then he is nearly ready to go - other than searches on your property (which can be rushed through in 24- 48hrs - how long is the estimated exc/comp time on your prop ? Unless of course, as gee says the buyer had a mort problem - If plan A above is not feasable then explore some more: Request exch/completion for 7/10/14 days (whichever suits) then either take a big dep + rent as above or help them find bb until exch. Mel- you sound v busy ! I am not extending my rental portfolio - just buying, renovating and selling. Looking to reduce portfolio as soon as prices pick up a bit (that maybe a long wait then ) not for financial reasons but because they take up too much time to manage. Rental demand has been really slow for a few months but the last few weeks has seen a noticable upturn. Altho i have never seen so many tyre kickers in my life ! Link to comment Share on other sites More sharing options...
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