Completing then renting the property from the new owners?

[badgerread]

I lost out on a property recently and there's nothing out there I want but my buyers are really keen. My situation has changed in that my DP of 8.5years and I are going to buy together. He also has a property to sell.

Anywayyyy. My buyer would like to still complete on mine by the end of March and have suggested renting it to me until my DP sells his and we buy together. They're in rented (with parents I think)

Anyone done this before? the more I think about it the more appealing it sounds. They complete before the end of March, I stay in house, DP sells his and in meantime we have a bit more breathing space to find something? They're willing to have a contract where it would be 6 months notice on their side but a month on ours? it will all be done officially through a letting agent..

Thoughts?

I’m not sure but I think they might have a problem as mortgage might insist the property is vacant on possession plus would need to be a buy to let mortgage?

Unless they are cash buyers then no they can’t as no mortgage lender would allow this....nor would their solicitor, just in case you refuse to move out! Also currently due to Covid, they would have to give you 6 months notice to leave....but they are in deep trouble if you choose not to move out to their timescale.

They would also need to take out a gas safety check, electrical test, install smoke and carbon monoxide detectors, arrange landlord’s insurance, put your rental deposit in an approved scheme and issue you with a “How to Rent” booklet. If buying with a mortgage then yes, they would need to BTL mortgage and not a residential one. I can almost guarantee that their solicitor will advise them not to do this. I know it’s common in the USA but it’s just not the done thing here.

Yes this is possible but their solicitor will need to okay it with their mortgage lender. Almost all UK mortgage lenders allow some form of temporary rental agreement < 6 months in this situation as long as an approved solicitor arranges it all.

Ex-conveyancer here... most mortgage brokers would have a serious issue with this as if you refused to leave legally they would have to go down the route of getting a normal tenant out, so can’t serve notice until you’ve been there 6 months, notice is two months long and only then can they begin court proceedings which are backed up to hell and take ages.
If he’s a cash buyer and willing to shoulder that risk then it would be a non issue but if there is a non-BTL mortgage involved I’d be amazed if it’s ok.

We have done that - just don’t tell the solicitor who may let it slip to the mortgage company.

Yes I've done this twice. First time it was a buy to let mortgage anyway (their baby was due imminently so wanted to delay moving but be cash buyers) and the second time was cash (sellers new property was not ready to go ahead on). I'm surprised at the unequal six months on their side.
Anyway if it appeals the mortgage issues are their problems, not yours.

I spoke to my solicitor last night who said that buyer does need to speak to their broker/lender as otherwise it could be ME in breach of contract as my contract states I am selling 'with vacant possession'