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Rent off our buyer or rent a bigger house - WWYD?

17 replies

TheDogsKnees · 21/01/2021 21:52

I'll try to keep this succinct!

We are in the process of a sale and purchase. Our purchase has gone to court for a force of sale order (acrimonious divorcing couple, could take weeks or could take months to complete, although the forced sale is very likely to be granted). We don't want to lose our buyer (an investor) as I've found the selling process, surveys etc very stressful. So we have today told our buyer that we will move into rented in order that we can complete the sale in 2-3 weeks and it all be over.

We are a family of 5 in a 2 up, 2 down mid-terrace. We have managed for 6 years but this last year has been hard, as our DD's have got older (and bigger) and because well, lockdowns! We have applied to rent a 4 bed house, albeit 4 miles away from schools/work, and are viewing it on Saturday.

Our buyer has come back to us and offered to rent our home back to us with a flexible contract meaning we can give a month's notice once we are either able to complete our purchase or find an alternative property. Our home can be a pressure cooker of stress at times, but financially it would be £400 a month cheaper than the 4 bed, we'd have minimal travel costs and no need for after school club for youngest DD. BUT it's Just. So. Small. It's also worth noting that there is a lot of work that needs doing roof/chimney-wise. Buyer knows about it as it was all on the survey but it is a big source of stress/worry for me, particularly in stormy weather, although I may not find it so stressful once financial responsibility is removed!

Should we accept the buyer's offer and hope we can move within a few months? Or, go for the bigger house because there is a chance that we may be renting for 12+ months and it's better to be comfortable even if it's a more expensive and less flexible option?

Gah, I hate adulting!

OP posts:
GrumpyHoonMain · 21/01/2021 21:58

Does the investor have bigger properties?

Werk · 21/01/2021 22:04

We planned to do this with our buyer but his solicitor told him he couldn't do it, that it was a huge risk for him because there are rules on sale and rent back and we could have been entitled to stay for 5 years (or something like that).
We ended up moving out into a rental that a relative of his lets on air bnb - we got a good deal and it is much bigger than our old house. I have enjoyed the change of scenery this lockdown.

negomi90 · 21/01/2021 22:13

Rent your current house. Otherwise you have to move twice with your small people.

gmailconfusion2 · 21/01/2021 22:16

I'm surprised their solicitor agreed to it. There's loads of issues for the buyer for doing it was my understanding. So I would want a proper contract in place to protect you from mind changes or a last minute change of heart

TheDogsKnees · 21/01/2021 22:28

@Werk @gmailconfusion2 I think this was a knee jerk reaction from him as a way to make money quickly! I emailed him earlier regarding terms etc and I did ask if it was even possible as a quick Google search suggested it could be classed as a SARB (sale and rent back) scheme which I'm not sure is even allowed anymore?

Could we get round it by him having a rental agreement with my DP as he does not own our house - it's in my name only as I bought it 20 years ago before I met him?

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TheDogsKnees · 21/01/2021 22:30

@GrumpyHoonMain he is not local and only buys 2 bed terraces round here apparently

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OnlyFoolsnMothers · 21/01/2021 22:32

I’d rent back the house you’re already in as you know it and saves moving twice

gmailconfusion2 · 21/01/2021 22:33

@thedogsknees you'd have to ask your solicitor I'm afraid, I'm not sure of the ins and outs. But even if he rents to you, he'd have to get a gas safety certificate, if you pay a deposit it would have to be put in a deposit protection scheme, he'll need to do an electrical safety certificate for you to see, it's not just a case of its OK you can keep living there.

TheDogsKnees · 21/01/2021 22:39

@gmailconfusion2 I've already asked him about all these things. I would want a proper rental agreement in place with a pre-tenancy inspection, safety checks and deposit etc. Not least because I don't want to end up copping for some "damage" or other that was already present at the time we sold it!

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TheCraicDealer · 21/01/2021 22:39

I would stay out and use the £400 pcm "saving" to pack up whatever you can and put it in storage until you move. Just having more room to breathe and spread out should reduce the pressure-cooker feeling.

There's so much faff with moving, even getting broadband, insurances and post sorted is a pain in the arse. If there's light at the end of the tunnel with your new place I would just try to make do.

TheDogsKnees · 21/01/2021 22:40

@gmailconfusion2 when I say "him" I mean I've asked the buyer not a solicitor

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chickychicchic · 21/01/2021 22:42

If your buyer is a investor I guess he's used to renting etc so will know the rules it's just the bits others have said about renting back from buyer.

Otherwise if it was me I would stay why go through the stress of 2 moves. Declutter what you can into storage and cope for a couple more months you'll thank yourself in the long run

Magstermay · 22/01/2021 08:05

I would stay if the legalities work as moving twice is stressful. Save the £400 per month and use it to get movers to pack for you or for something nice in new house/ a holiday etc

SimplyRadishing · 22/01/2021 08:08

@Magstermay

I would stay if the legalities work as moving twice is stressful. Save the £400 per month and use it to get movers to pack for you or for something nice in new house/ a holiday etc
Agree with this Also by March the weather will improve and getting out and about will be much easier.
BornIn78 · 22/01/2021 08:13

I think I’d move tbh.

Apart from the SARB issue, you’ve said it could take more than 12 months, and your current house sounds like it needs work, which your buyer may end up having to do while you’re living there, adding to an already tight squeeze in your living conditions.

Either way, go and view the house on Saturday and see if you can get some kind of idea from solicitors of just how long the forced sale of the house you’re purchasing might take - realistically.

cheeseismydownfall · 22/01/2021 08:21

We rented back a previous house for a few months when we bought a new house that needed extensive renovation. The new owner had bought our old house as an investment property and it worked out well for everyone. I had no idea they there were potential legal issues with it, but I guess the risk was for them not us. If it was me I would stay in the house and avoid having to move twice

icelollycraving · 22/01/2021 08:28

I was going to do this last time we moved. The buyer then wanted so many stipulations after a tricksy sale that we stayed with family instead.
If you can stay put without too many hassles then I’d definitely do that!

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