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letting to purchasers or vendors- potential pitfalls?

(6 Posts)
dsamm Sun 28-Nov-10 19:02:05

What would the dangers be of the following scenarios?
1. Selling our house - letting the purchaser rent it off us between exchange and completion? is there a mechanism to do this? How dodgy could it be? It would be for a short period of time -eg 1 or 2 months.

2. Buying a house - letting it to the current owners following completion for a short and specified period of time eg 2 months.

I can imagine both scenarios having significant risks, but just wondered if someone with a bit of legal nouse could give a quick indication of the issues, as I realise they both might be total non-starters.... or maybe these days things like this are a bit more common?

LIZS Sun 28-Nov-10 19:09:12

There is something called a Licence to permit access and /or occupation short term but it doesn't give same security as an Assured Shorthold lease and your mortgage company/insurer may not agree. We looked into it when we were buying to do some work before completion but the vendors would n't agree.

dsamm Sun 28-Nov-10 19:14:56

thanks, will research that - my googling wasn't very productive! Anyone have positive experiences of this??

Gonzo33 Mon 29-Nov-10 09:02:50

I haven't personally done it myself, but have come across the request as a mortgage advisor / underwriter and the lender has always declined the request. Not to say that your's will decline, but just to warn you.

bobblehat Mon 29-Nov-10 09:21:22

We were in a similar situation earlier in the year, but it was slightly different to your circs.

We had been renting a house with a short term lease (6 months at a time) for a year or so. We then wanted to buy the house, but the current rental agreement (arranged through a rental agent on behalf of the private landlord) ran out before completion. The solicitor sorted us out with a short term arrangement (it was about a month) with the landlord until completion.

So, it can be done, but we had already exchanged contracts before this came into force.

I think it would depend on the reasons. For various reasons the vendors wanted to complete on a certain date (end of finacial year, so for tax reasons I guess)but I wouldn't do it if it was dependant on another sale.

Hope that helps.

LittleMissHoHoHoFit Sun 05-Dec-10 13:56:39

This is what can happen.

sorry DM link

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