Looking for innovative seeking solution

[Pfaffingabout]

Hi all

I'm looking for opinions and innovative solutions on prospective renters who actually want to buy the property but can't afford to do so immediately. This is the first time I am having to navigate the English property system.

To give some background -

I am putting my parents place on the market following a death. It would be sold subject to probate which is still stuck in the system. The EA tells me it is a desirable property in a sought after area, but obviously can't predict the housing market at the moment. It would need some work if I were to rent it on the open market.

In the meantime, I have been approached by someone who was looking for a short term rental to allow their sale chain to proceed whilst they looked for their forever home. They would allow viewings etc. This seemed like a good solution all-round as the property would then be occupied during a potentially lengthy sales process.

After visiting the property, the prospective renters like it so much that they would like to buy it! Unfortunately they need 12 months to save up enough for a deposit. They offered to make a firm commitment to buy.

As far as I know, it is not possible to have a binding agreement for them to buy at an agreed price. I was astonished to find out that buyers can change their offer right up to completion! Our estate agent strongly recommends against renting to them with an agreement to buy in 12 months.

I would like to sell to these people but the proceeds of the sale and/or rental income will go towards the costs of care for my surviving parent, so it would not be ideal to lose money in the event of having to go back to the open market in 12 months time.

So I'm looking for ideas!

• We could take a non refundable deposit, but not sure how much they could afford and they could still refuse to pay the agreed price.
• I see that the rent to buy scheme is for new builds offered by housing associations
• We could put it on the market and suggest to the prospective renters to try and find the deposit elsewhere and say that we would consider their offer if not too far from any higher offer.
• If we do go straight to market, I would be less comfortable renting to someone who may have an interest in putting off other potential buyers! And anyway, any other buyer could still change their offer up to completion which would be 6 months at the earliest.

Has anyone done anything similar? Am I missing a good solution?

Aargh - title should say selling solution!

It sounds too messy. I wouldn’t. Right now could easily be the peak of the market. If they rent it and it drops then there’s nothing motivating them to ‘save’ quicker. Quite the opposite. Who knows if emergency measures protecting renters will come back in like during COVID.

If the property is to pay for your parents care I wouldn’t gamble with it. It’s too important.

Thanks - I hadn't thought about the possibility of emergency measures protecting renters.

You are incorrect about changing the price up to completion. Once contracts have been exchanged, the price in the contract is the price to pay.

We bought our current house on a long contract, we exchanged but agreed that completion would be mutually agreed before a fixed date. We were not in’s hurry to move, it secured the property and gave the vendors time to find a house.

i think it would be unlikely that anyone would recommend doing this for as long as year in the current climate of inflation and mortgage availability though. It’s just to far in the future for anyone to be able to make a sensible commitment. Meanwhile you are tying up your own options to sell the house.

I would wait until you have probate and then get the house properly valued for sale or rental. I’m surprised that it is suitable for rental under the looming regulations if you don’t think it is saleable!

Their lack of deposit is not your problem.
If they can’t buy it then sell it to someone else

Don't do it. Just sell it. The people renting could really screw this up - they could not pay the rent, trash the house, refuse to leave requiring eviction which takes a lot of time and money.... All of which will leave you still less to pay for the care.

The market could collapse, they might not get a mortgage despite their claims...

Way too many variables here for a high risk attempt to help someone else when your parent will need the care.

Thank you all, you're probably right. I just hope it will sell quickly - the EA vacillates between optimism and saying he can't predict the market.

Listen to your estate gent on this one. A solicitor would say the same, I suspect. Under no circumstances would I make any commitment to sell to them.

I have known of people who thought they were renting a place between houses fall for it, and buy it, and spend many happy years there, and the seller was delighted. But, to take an absolute worst case- a tenant who wanted to buy from the start could devalue the property in a number of ways to make it cheaper for them to buy and less attractive to other buyers.