Is this a crazy idea?

[rockybalboa]

We are selling our property. We have relocated and are living in temporary accommodation whilst the house sells. Most of our stuff is still in the house. Our buyers are renting and have given their notice as we were aiming to complete in late April. An issue has cropped up in their survey which needs fixing with a bit of building work. Nothing risky or raising concerns with their lender, just something that the surveyor says we need to sort before exchange/completion. With the best will in the world this work is not going to be done in time to complete in late April. Purchasers therefore stand to be charged by their letting agent for changing the moving out date. So, the idea is that on the proposed completion date, we could move all our stuff into storage and our purchasers could move in as tenants and pay us rent until the sale is completed. The work should not be too disruptive. Although it seems like a neat solution I am sure there are several reasons why it is not such as if they pull out of the sale at a later date and we are then stuck with them as tenants when we want the house sold. Does this sort of thing happen? Can anyone advise please?

I have noticed this question come up before on MN and I'm pretty sure you're on dodgy ground having them rent before completion but I'm sure someone on here will know.

If they are going to be living there anyway during the building works can't you just get your solicitor to draw something up to say you agree to meet the costs of the building works and just complete when you planned?

Also, the charge your buyers have for moving for moving out of their rental later may not be that much - maybe just an admin fee!

Thanks Cheeky! Yes, one option is that we obtain several quotes for the work and then reduce the purchase price accordingly and they then do the work once they are in post completion. It is what happened with other work I had done when I bought it. Seems the most sensible option but I guess it carries risk for them in case the work turns out to be more extensive once the builders start. It is a Victorian property and that sort of thing happens....

Yup, bad idea I think. Once they're in as tenants you could find them suddenly wanting to reduce the price, or find more "work" that needs doing. And once you've got sitting tenants, selling a place is a nightmare, especially if they won't move. I'm sure your buyers are nice people and none of this would happen, but with the best will in the world, you just don't know. I'd get 3 quotes for the work, agree with the buyers what you're willing to knock off the price and let them deal with it once they've bought your house. MIf the work ends up being less, then happy days for them, if it's more, then buyer beware - they've had a survey done and as vendors, you've behaved in a fair way.

Do you have a mortgage? If yes the terms won't allow you to let you house out without approval from the lender & changing to a BTL rate. Too much paperwork & potential penalties depending on your terms. Not great for you.

Why are you bothering with your buyer's inconvenience? You are taking your share of the problem by getting the work done, they are taking their share by working things out with their landlord. Fair deal.

Agree with huhpuh - bad idea. terrible in fact.

As their LANDLORD you are bound by certain laws to do things, (EPC certificates, insurance, Gas safety certificates).

There is a chance that as they live there they find things that need doing and you are bound again by law to fix them.

If the boiler needs replacing or the windows are draughty or the shower is a bit dodgy you may find you have to fix it. After you have done the building work to rectify the problem raised in the survey you might find they have found somewhere that suits them better!

Get three quotes and deduct from the price of the house OR get it done and they will sort out their own rental problems. (In the meantime you might even find another buyer)

Do NOT do this!!! Having them on there without a formal contract could go very very wrong as they could acquire sitting tenant rights.

Thanks all, crazy idea duly recorded as crazy!

Slightly different situation, but we rented from our vendor.

We were living (as owners) in a house with (student) tenants coming in on an unmovable date, and had had a long drawn out purchase (fault of vendor). We needed somewhere to move to, and couldn't afford rent and mortgage. So we had to give the ultimatum: let us move into your (empty) flat (preferably as owners, but as tenants will do), otherwise we need to pull out and rent elsewhere.

I wouldn't do it just to save some fees, though.

they are making excuses. More of an issue for them is that there may already be new tenants and they need to leave.

as noted: get quotes, reduce price accordingly, sell it and forget it.