Buying a property with vendors wanting to stay a few months?

Buying a property with vendors wanting to stay a few months?

16:21 PM, 31st January 2017, About 5 years ago 30

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I plan to buy a house as a buy-to-let investment. time

The sellers have asked if they can continue to stay at the property (and pay rent) for a couple of months while some work is carried out at the house they are buying. I have no problem with this as I plan to rent anyway. I would simply put it on the market once the sellers vacate.

But it does mean the house would be sold “without vacant possession”. Is there a way I can agree to the vendors staying at the property for a couple of months without them accruing rights of occupation? I could ask them to stay at a hotel for a night or two at the time of the sale if this would signify a “clean break” but I don’t think they would want to move all their furniture out and then back.

Many thanks

Nigel



Comments

by Mark Alexander

8:45 AM, 1st February 2017, About 5 years ago

Reply to the comment left by "Mick Roberts" at "01/02/2017 - 08:28":

Fair enough Mick, it's your future, your choice.

If you will insist breaking the law, fully aware of the consequences, please be sensible and don't confess in writing under your own name on a public forum.
.

by Anne Noon

9:03 AM, 1st February 2017, About 5 years ago

I have done this on the past and kept the existing tenants on, but only when I am purchasing with a BTL Mortgage, I have not had a problem with the lender at all (Birmingham Midshires.) But as you are purchasing from an owner, my recommendation would be to get the owners to move out - keep their furniture in a furniture van over the weekend and then let move back in again on the Monday on an AST. ( or they could fill up the furniture van on the day, wait until completion and then move back in after completion) It's a hassle for them and a bit costly for them, but you are doing them a favour, not the other way round.

by Chris wood

11:14 AM, 1st February 2017, About 5 years ago

If it's of any value I am in the position you mention. I sold my house to a investor who intended to put it up for rent to the student market. Just as I was in the process of selling my Mum became terminally ill and I was going to pull out from the sale and I told the buyer this. He said another option would be to rent it off him. As I had a couple of rent-a-room lodgers in anyway I was getting some income. Fair enough, the prospective owner wanted a reasonable rent based on renting out to students - substantially more than he would have received from rental to a family. Anyway, we agreed on a rent and I was quite happy to accept. It helped me not lose the sale and him have an instant tenant ! All I did was sign an AST and just stayed put. With the income from my lodgers I am only having to pay £30 per week in rent whilst I look for another property to purchase with the proceeds of the sale. I don't know about the finer legalities of this - he was a cash buyer, but there did not seem to be any issues and having met each other a few times over a beer or two prior to the sale I think he was confident he could trust me not to be difficult. I've got that kind of face !

by Gary Dully

11:16 AM, 1st February 2017, About 5 years ago

Reply to the comment left by "Mark Alexander" at "31/01/2017 - 19:36":

Wouldn't a long stop completion also trigger stamp duty, nowadays?

by Darren Peters

11:41 AM, 1st February 2017, About 5 years ago

What if they stayed as non rent paying guests for the period?

What if you made a holiday let through Air Bnb - is that legally a rent back?

by Mark Alexander

11:46 AM, 1st February 2017, About 5 years ago

Reply to the comment left by "Gary Dully" at "01/02/2017 - 11:16":

Yes but that's not the point. SDLT will be payable regardless.
.

by Paul Green

13:06 PM, 1st February 2017, About 5 years ago

Assured short hold tenancies in England and Wales, can't be any shorter than 6 months.....therefore 6 months is the minimum. For example. You can't do an AST for 2 months...

by Darren Peters

13:35 PM, 1st February 2017, About 5 years ago

Reply to the comment left by "Paul Green" at "01/02/2017 - 13:06":

You can but you wouldn't be able to gain possession within the first 6 months if the tenants didn't want to leave in that time. But then, if the tenants decide not to leave when a tenancy has gone periodic takes at least 4 months to remove them anyway.

by Luke P

13:52 PM, 1st February 2017, About 5 years ago

Could they not use chain-break finance?

by Paul Green

15:04 PM, 1st February 2017, About 5 years ago

Reply to the comment left by "dp1 Django" at "01/02/2017 - 13:35":

Your right, you can do shorter, but can't evict before 6 months so for this reason my lettting agents won't do less than six months, also you would not qualify for rent guarantee insurance if you drew up a AST below 6 months, as they only offer 6 and 12 month policy's, I always use rent guarantee for the first new tenancy until I get to know them and their habits and don't do less than a 12 months AST anyway, because its not worth the hassle for 26 weeks....I live in the south east. I understand 6 months is the norm up north...


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