Renting out to prospective buyer?

by Readers Question

10:07 AM, 10th December 2015
About 3 years ago

Renting out to prospective buyer?

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Renting out to prospective buyer?

We are selling our flat and its a leasehold. Exchange date was set for the end of November and buyers solicitors are asking a lot of questions which then have to be referred back to the Freeholder who legally has 8 weeks to reply.buyer

My questions is – is it possible to let the prospective buyer occupy the flat as a tenant paying rent until the exchange of contracts and completion?

Kind regards

Serge



Comments

Michael Barnes

13:16 PM, 10th December 2015
About 3 years ago

I see no reason why not. After all, one can sell a property with a sitting tenant, and even sell to the sitting tenant.
However, the solicitors will then have to deal with transferring the tenancy.

Once it has gone through, your buyer will then be his own landlord and you will have no further responsibility to him.

To avoid deposit-protection hoops, you might be able to agree a non-refundable deposit on the purchase, say 1-month's rent, rather than a deposit on the tenancy. This gives the buyer an incentive not to pull out of the purchase on a whim.

Make sure that you have suitable Landlord's insurance in place on the buildings.

SergeT

15:45 PM, 10th December 2015
About 3 years ago

Many thanks Michael for informative answer!

John Pettman

16:55 PM, 10th December 2015
About 3 years ago

NO Avoid like the plague. Let us deal with this question properly. First point do you have a mortgage and if you do I suggest that it is NOT a buy to let mortgage so straight away you are in breach of your mortgage conditions. Second What does you Lease say about underletting . There could be a total prohibition. Oh dear we now have a potential problem .Perhaps you may have to get prior consent from the Freeholder so LOOK AT THE LEASE.. What are you going to do if you let them into your property and they change their mind .UUM oh dear How long is it going to take you to get them out so that you can sell to someone who wants to buy with vacant possession.. Incidentally if you do let them in and they do complete, the existing tenancy will be terminated

John Pettman

Puzzler

13:43 PM, 11th December 2015
About 3 years ago

Absolutely agree with John, don't.

Why would you want to? Get in touch with the freeholder and get them to get their skates on.

SergeT

14:08 PM, 11th December 2015
About 3 years ago

John and Puzzler - thanks for comments!
It was just an option to fill the flat until its sold but i assume its better be safe


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