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Original poster

Buying a house but currently in rented house - when to give notice?

31 replies

StuntNun · 27/09/2018 03:38

I had an offer accepted on a house three weeks ago. There's no chain as the current owners of the house are moving in with their parents and we are currently renting. We have to give two months notice to leave our rented house and DH thinks we should wait until contracts have been exchanged before we give notice. I'm worried that is going to add an unacceptably long time on to the process of buying a house. We can't afford to pay both rent and mortgage for a month or more if there's a long overlap.

OP posts:
someoneseatenmyapple · 27/09/2018 03:44

I'd start with speaking to your landlord first to see how flexible they are or can be.

Then I'd speak to your vendors to see what they had in mind in terms of how quickly they wanted to be out after exchange.

Exchange to completion can sometimes be quite swift unless it's all pre arranged.

VanillaSugary · 27/09/2018 04:16

Wait until you've exchanged contracts!

We were in a similar position with buyers who were living in rented.

The week before we were due to exchange a) my mother became seriously ill and I had to disappear for a week b) the house we were buying still had outstanding conveyancing issues.

I tried to delay the exchange date but the buyers had given notice and the estate agent bullied us into continuing. Fortunately my mother didn't actually die that week, but it was touch and go. If she had passed away, everything would have been put on hold and our buyers would have been stuffed.

You never know what will happen. It's worth holding onto the rented house and paying the mortgage/rent for a bit just for peace of mind. Also, you can get the decorating/alterations done and you can move in at leisure.

Original poster
StuntNun · 27/09/2018 04:27

Thanks for your replies. We were aiming for a one week overlap because the our rent is so high we couldn't afford to pay both rent and mortgage. We could reasonably expect to move at the end of November but if we wait for contracts to give notice then it will probably end up pushed back to January. I'll contact the estate agent about the notice period but having spoken to them before I think they will insist on the two months notice. The owner of the house is planning to sell it once we move out so I think they will want that time to get it on the market.

OP posts:
BritInUS1 · 27/09/2018 05:03

Don't give notice until you exchange, anything could happen to make it fall through

mamansnet · 27/09/2018 05:08

Not in the UK so don't know if it's the same, but our bank let us move into our new flat and defer the first mortgage repayment by a month. Do they have any flexibility?

I'd be reluctant to give notice until everything is signed and sealed...

DunesOfSand · 27/09/2018 05:28

I think you need to scrimp and save and try to come up with enough cash to make an overlap of more than a week. And talk to the landlord about the possibility of handing in notice now, without a firm end date.
Nearly 2 months from exchange to completion isn't ideal, but neither is handing in your notice before exchange.

The size of the first months mortgage payment is also dependant on when you move in, and when the payment is made. I seem to remember a very high payment about 5 weeks after we moved in as a first payment, and it all settled after that.

serbska · 27/09/2018 06:50

Give notice after exchange.

Unless you’re happy with the potential scenario where you have to pack all your belongings up and stash them in storage or friends/relatives and find somewhere to stay.

Or be happy to have to do all the above and then find a new rental because your house purchase has fallen through!

serbska · 27/09/2018 06:51

I would agree with your sellers a one month exchange to completion timeline, then you’ll only have an overlap of one month rent and mortgage.

Kamma89 · 27/09/2018 06:53

Do not give notice until you have exchanged. 2 months is not that bad for exchange to completion. If vendors want to go quicker they can pay your rent. They have the equity build up so better placed to afford it.

ChangoMutney · 27/09/2018 07:03

Give notice once you've exchanged, I write this as a former EA and someone who's been in this situation.

A few things to remember though, firstly you need to give notice by the day your rent is due so if that's the 1st of the month and you exchange on the 2nd you're two month notice will start from the 1st of the following month so it'd be three months. Exchange dates often move. You can make your need for a specific time between exchange and competition clear, however most vendors aren't keen on more then a month. Most mortgage companies ask for your first payment a month after your completion date, not before so if you exchange, give your notice and have a month before completion although you'd have a month overlap you'd only be paying the rent not the mortgage as well.

Obviously check this with your mortgage company. Also ask your landlord for a shorter notice period if he gets a new tenant in sooner and offer to be very helpful with viewings. Remember that regardless of what your contract says you have a right to quiet enjoyment and don't have to allow viewings while you still pay the rent.

PippiLongstocking01 · 27/09/2018 07:09

I would not give notice until I had exchanged contracts as it’s so easy for something to go wrong and for the sale to fall through. I would speak to your landlord about the situation and see if it’s possible to give one months notice instead. When we moved house our landlord had someone ready to move in the day after we moved out so we just paid a pro-rated rent for that month rather than the full months rent. Although you will pay some overlapping rent & Mortgage the positive point is that you will be able to clean and decorate your new home before you move into it!

TheNumberfaker · 27/09/2018 07:24

Do not give notice until you exchange. We had a 3 week overlap. Look on it as a useful way to move easily and get decorating/ decluttering/ minor improvements done before you move in properly.
You have to accept it as part of the overall cost of buying a house I’m afraid - unless you want to run the risk of being homeless and paying vastly more in storage/hotel costs.

Fishforclues · 27/09/2018 08:02

We gave notice before exchange because we simply couldn't afford not to. The key is a good Plan B. We thought our landlord would likely agree to an extension if needed, and failing that both sets of parents offered to have us back for a bit.

Of course it's good advice to wait until exchange, but it's hard to take that advice if you don't have a spare £700. A bit of an overlap is a good thing but ours was 2 months, which is way too much, especially if the 2 months can only start on a particular day of the month.

You could explain the situation and see if your landlord would agree to take one month's notice. No harm in asking.

Dickybow321 · 27/09/2018 09:36

I thought ASTs always had a one month notice period once you were past the initial six months?

Anyway, the person above saying that it's all very good in theory but what if you can't afford to... Well what if it all falls through at the last minute? We are due to complete tomorrow and haven't even exchanged. Hopefully today Hmm. This was no way meant to be the case :I had said from the start we need at least a week between exchange and completion. But my buyer has to be out of their rental by today at the very latest, hence this ridiculous situation where we are half packed up but have no idea if it is actually happening tmrw or not.

He actually gave notice which should have ended two weeks ago and was very lucky that his LL let him extend that when it became apparent that people further up our chain were messing about and no where near ready to complete. If we don't complete tomorrow he is homeless. This is the risk you take if you give notice before exchanging. In your shoes I would give notice only once you'd exchanged bc then you know you definitely will be completing at that time or you get to effectively fine the vendor.

notangelinajolie · 27/09/2018 09:41

Give notice on exchange date.
Set completion date for 2 months later.

specialsubject · 27/09/2018 09:45

2 months? England? Rolling contract?

no. one month.

specialsubject · 27/09/2018 09:46

and NEVER believe the 'moving in with family' thing. always a lie.

GetOnYerBike · 27/09/2018 10:00

We have always overlapped tenancies and then overlapped buying with renting. Just a cost you have to swallow.

NEVER give notice before exchange. Anything can and does happen.

Talk to your landlord and explain the situation. Try to push back the completion date. Our vendors wanted 3 weeks as they were moving into rented and it gave them time to find somewhere between exchanged and completion.

When people say they are moving in with family, sometimes that happens but usually they find their dream house and that we are looking to exchange next week becomes 8 weeks.

The issue with living with family is you have to put your belongings into storage. You pay 2 sets of removal costs plus the storage. I know because we have done that in the past. Lots of vendors see that cost and think screw it we'll try to find somewhere.

SassitudeandSparkle · 27/09/2018 10:02

The last property we sold had a month between exchange and completion for this reason - our buyer's buyer was in rented and wanted to wait until everything went through. I already knew that they were renting and was expecting it, tbh.

serbska · 27/09/2018 10:55

Anyway, the person above saying that it's all very good in theory but what if you can't afford to...

It is part of the cost of buying a house. Suck it up cupcake, or run the risk of being homeless with all your worldly possessions. Which might be an acceptable risk to you, if you have minimal 'things' and friends/family you can stay with.

Dickybow321 · 27/09/2018 13:18

"Anyway, the person above saying that it's all very good in theory but what if you can't afford to...

It is part of the cost of buying a house. Suck it up cupcake, or run the risk of being homeless with all your worldly possessions. Which might be an acceptable risk to you, if you have minimal 'things' and friends/family
you can stay with."

Exactly! Moving is expensive. You will have to factor this cost in.

Dickybow321 · 27/09/2018 13:20

2 months? England? Rolling contract?

no. one month.

That's what I believe to be the case too.

Hissy · 27/09/2018 13:24

LL has to give YOU 2months, YOU give LL one month.

Hissy · 27/09/2018 13:30

In the absence of stipulated notice.

here is more info

england.shelter.org.uk/housing_advice/private_renting/ending_a_periodic_tenancy

Original poster
StuntNun · 27/09/2018 13:36

I've spoken to the property managers and they have said it would be up to our landlord whether he would accept a shorter notice period than the two months specified in the contract.

As I mentioned, the house we currently rent is going to be sold when we leave so I imagine even if someone put in an offer on the day it went on the market there would still be a minimum of 6-8 weeks before that sale could complete. So if something unexpected does come up that delays completion then we wouldn't necessarily be out on our ears.

We had a five-week gap last time we moved and stayed with family with our stuff in storage. That would work out significantly cheaper than rent for over a month. We haggled them down a fair bit on the price, I can't see them going for paying a few grand in rent for us.

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