Renting out to prospective buyer?
10:07 AM, 10th December 2015, 10 years ago
5
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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.
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
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Using the rent to keep up with the Jones’s
Member Since July 2013 - Comments: 1434
1:16 PM, 10th December 2015, About 10 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.
Member Since October 2014 - Comments: 4
3:45 PM, 10th December 2015, About 10 years ago
Many thanks Michael for informative answer!
Member Since December 2014 - Comments: 35
4:55 PM, 10th December 2015, About 10 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
Member Since July 2013 - Comments: 1266 - Articles: 1
1:43 PM, 11th December 2015, About 10 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.
Member Since October 2014 - Comments: 4
2:08 PM, 11th December 2015, About 10 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