house buyers want us to cover rent until sale complete

[SAF55]

We are in a chain where we are selling and buying, our sale has been slow due to the housing association (we Own a shared ownership) being slow in responding to enquiries however we have chased and chased and tried to progress the sale as much as we could, ultimately it was out of our hands. Our buyers now asked if they could move in before the sale is completed as their rental agreement ends which is a definite no as we won’t have anywhere to move into and have a toddler and in also currently pregnant. They have then asked us to cover part of their short term Rental due to not meeting the ‘deadline’ of when their contract ends. I don’t think we should have to do this as this is just part of the process of buying a house- target exchange dates are not concrete and I understand their position is not ideal to have to rent but we also can’t afford to pay for their rental! We have cow winged contracts so I’m hoping we can still complete in the three weeks before their contract ends but don’t want to lose them as we have lost 2 buyers previously. Any suggestions??

[Winter2020]

Assuming you are in England their rental contract doesn't "end" - it simply becomes a rolling month by month contract. (Whether the landlord wants it to or not).

A tenancy can only be ended by the tenant or a court so advise them to stay put until your sale completes. The landlord won't have time to evict them unless the sale drags on a very long time.

[Elizadooalot]

Their living arrangements are not your responsibility...

[Mumof3andahampster]

It’s not your responsibility to pay their rent. It’s a difficult one as your sale could take longer than 3 weeks again with housing association involved. If they really want the house then they won’t pull out.

[ToWorkOrNotToWork]

Don’t pay their rent, you’re under no obligation morally or legally. House chains take time; it’s a fact and it’s their risk unfortunately. Your risk is that they will pull out of the purchase although it’s hard to see how this would benefit them.

[ILoveSpoon]

If you're so close to completion then they surely won't find something else faster so it'd be in their favour to keep going.

"Don't ask, don't get". They've asked, you say no.

[mrsbyers]

presumably their mortgage would be less than rent ? I think they’re trying it on but maybe as a compromise offer to pay the difference should it drag on for only one month

[SAF55]

I did suggest this but their contract was for a set time and will end, the landlord already has new buyers coming in so they can’t stay. But I also don’t think that means I should have to pay for their short term rental 🤷🏻‍♀️

[MiltonNorthern]

Their contract will not end, assuming it was a standard assured short hold tenancy. Having an end date to the AST period doesn't mean it ends. They should have negotiated with their landlord. If they have agreed to move out that's their mistake. And even if it wasn't - it's not your responsibility to pay their rent. Have they never bought before? Do they not understand how this works?

[cinnamonbiscuit]

Absolutely do not pay their rent! You're correct, this is part of the buying process if you're moving from rented. When I moved from rented into my first purchase, our solicitors, our lender and eventually our vendors solicitors delayed everything by just enough time that we went over into another month of our tenancy and had to pay both rent and mortgage that month. It's the risk you take, it's not anyone's fault that there's been a delay, this is just what happens sometimes and it's a cost they need to anticipate. If they've already agreed to move out they need to consider their options eg Airbnb, put their stuff in storage, stay with family etc. It's annoying for them but definitely not your financial burden to bear.

[MooFroo]

To secure the sale and not have it fall through maybe offer a contribution to their rent and be clear it’s all you can afford?

[RokaandRoll]

You have a typo in your first post- do you mean you've exchanged contracts? If so and you're in England you have nothing to worry about- just say no.

[InterGalacticc]

Would I want to pay their rent, no. But how much do you want to ensure the sale goes through? You risk loosing your buyers and if I was them I would start looking at other properties

[SAF55]

Sorry, we just signed the contract

[SAF55]

if they start looking at other properties they would surely be renting longer. We are very close to exchanging and we just can’t afford to pay our mortgage, childcare costs and their rent. We also both made it clear on our contracts that if either we or they pull out, they must pay the solicitors fees if the other party, so it would cost them our fees if they pull out.

[Sodndashitall]

You've just signed ie exchange contracts? Surely you have a completion date then?
If they don't go through with this then they'll be back to renting anyway. You're nearly there so just hold your nerve!

[mitogoshi]

Depends on how long you have been delayed by - and whether you want to risk loosing them. If the sale is close to exchange (completion can be the same day these days) it might be worth doing a deal, get advice from your solicitor to where you are at and if you offer something, put a finite amount of money in the table, not ongoing

[HavfrueDenizKisi]

It's a firm no on paying their rent.

They may well feel it's 'unfair' that they haven't been able to move by their preferred date but that's just how the system works for house sales in England. The renting/paying mortgage overlap is just an unlucky and happens to people in rentals. They have to suck it up and I'd say they are flipping cheeky to ask you to cover anything, quite frankly.

[Twiglets1]

Yes they will be renting longer if they choose to start all over again @SAF55

It’s very straightforward just to tell them sorry but we can’t afford to cover your rent as well as our own mortgage. They are almost certainly calling your bluff because to go back to square one would extend their renting period by several months.

[SameSameButDeliverance]

Think of it from a different perspective: they REALLY want your property if they are prepared to ask this. They clearly don’t want to pull out or lose the property (especially given they’ve signed a contract that binds them to your fees).

You could make a ‘one time offer’ of, say half of one month to show willing but I would hesitate / play hard ball.

[kitchenhelprequired]

It is possible for them to stay in their rental beyond the end of a fixed period - an AST contractually becomes periodic at the end of a fixed period however their will only be one point in a month that one months notice can be given by the tenants so if they stay on they could end up doubling up on mortgage and rent as it's very unlikely to all align date wise but this was always going to be the case. Their lack of planning/understanding of the situation does not become your emergency. You are not responsible for their housing costs but it might be in your best interests to help in some way if you don't want them to pull out at this stage - that wouldn't be in your best interests. They have housing costs if they stay put, take a short term more flexible option or had completed on your property.

[Mitherations]

No they can't move into your house before you complete, and for the same reason no you won't pay their rent.

If they pull out they'll be paying rent for longer as they'll have to start the buying process again so there's no logic in their request. Call their bluff, this is just how it goes, refuse. It's a frustrating and stressful system and it can bring out the less reasonable side of people, but you don't have to join in.

[SomethingDifferentt]

What contract has been signed if you've not exchanged yet?

[MinnieMountain]

Ha ha ha. No.

@SomethingDifferentt both parties sign the contracts and leave them with their conveyancers. Exchange is a conversation with set wording between the conveyancers. We ring the clients just before we do it to get permission.

[Daffodilsandtuplips]

@SAF55

Sorry, we just signed the contract

If you’ve just signed and not exchanged then they or you can pull out of the sale.
Once contracts are exchanged then it’s a different matter. However..Don’t forget they’ve invested money into this sale already: search fees, property survey, solicitor fees, they won’t want to lose that, if they pull out they’ll have to pay it all out again on the next house.

I wouldn’t agree to paying their rent,
They were silly to give up their rental before a completion date was finalised.
Whatever you do, do not let them move in or have the keys until their money has been paid to your solicitor and he or she has released the funds. This has the potential to open up a whole new can of worms.

[DodgeDoggie]

I think a lot of this is in how you respond. ‘As a good will gesture we would have liked to contribute toward rent but we don’t have the cash sadly’