Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

Talk

Property/DIY

Join our Property forum for renovation, DIY, and house selling advice.

Flip

Original poster

Would we be mad to do this?

13 replies

Smsquared · 14/08/2023 17:12

Feel in a tight spot here.
Have sold our house for a good price (above asking price) and our buyer's mortgage offer expires end of Oct. We have found a house we love and had offer accepted on it, and consistently said we need to complete by end of Oct. No issues with house we're buying (2nd house in chain), and they've offered on 3rd house in chain. However 4th and final house has tenants in it until end of Jan, and therefore cannot exchange / complete until end of Jan. Landlord of final house is pushing us to break the chain and complete sale on our house, which would mean we move into rental accommodation/with family for 3 months (Nov, Dec, Jan) reducing chain to just 3 properties which will all complete in Jan. This leaves us exposed..we are the only ones in the chain taking on the risk as if the chain collapses for any reason we are homeless. Money in the bank sure, but our mortgage offer (which is a good one, secured before interest rates went up) would expire meaning we wouldn't be able to get a new one at a favourable rate, so would be stuck in rental...we love the house we've offered on and I'm looking for some positive thinking that says all will be ok. Anyone else have this?

OP posts:

Freyya · 14/08/2023 22:42

Why should you be the ones to break the chain and not the people buying the tenanted house? I’d push for them to do it instead.

Original poster

Smsquared · 14/08/2023 22:43

Freyya · 14/08/2023 22:42

Why should you be the ones to break the chain and not the people buying the tenanted house? I’d push for them to do it instead.

The ppl buying the tenanted house are a couple in their 80s so have said it's not feasible for them.

OP posts:

KievLoverTwo · 14/08/2023 23:34

Could you go on a tracker instead? Mortgage rates will probably reach their peak by the end of the year, stay that way for maybe 9-12 months, then slowly start to come down, if economists and the BoE are to be believed.

The only tracker I have been quoted on is 6.39% but we are FTB looking at 95% LTV, and that was before rates started going down. Folks with equity should surely get better rates? 2 year term.

Twiglets1 · 15/08/2023 07:06

If your Buyers mortgage offer expires at the end of October they could ask their Lender if it could be extended to January? Who knows, they might be able to secure a slightly better rate by waiting longer as fixed rates are starting to fall a little.

If they can’t get their mortgage offer extended then tbh I would probably move in with family for 3 months. You have an above asking price offer & in this market, your main priority should be keeping your Buyers sweet.

Plus it would put you in a brilliant position re your onward purchase where you would have fewer people to mess up the deal and flexibility over the exact moving date.

Heronwatcher · 15/08/2023 07:42

If I loved the house I’d do it. But I might ask for some guarantees from the tenant house or at least evidence. Has he served notice on the tenants yet, and have you seen it?

Realistically the chain might fall apart, either because of tenant house (e.g. if they just don’t leave the landlord will have to take proceedings to evict them) but possibly for other reasons. But unless you think you could find a better place and complete on that in less time it’s probably worth a try, especially if you’ve got a decent sale.

3isthemagicnumberrr · 15/08/2023 07:52

Could you break the chain to keep your above offer sale price, and ask the rest of the chain to exchange early and complete end of Jan to try to stop the chain collapsing at the last minute?

Jackydaytona · 15/08/2023 07:54

Nooooooo

VeeAye · 15/08/2023 10:21

I'd be asking all the mortgage companies in the chain, we asked someone in our chain if they could do that as the end was a new build which was delayed and the other two of us had mortgage offers expiring but the mortgage companies wouldn't allow a break in the chain but they did extend the offers.

Janieforever · 15/08/2023 10:25

I’d not do that. What happens if the tenants don’t leave when they should. You could be totally screwed. Especially if the interest rates drop and house prices jump up. You’d need to exchange at the point of agreeing so they couldn’t pull out. And then with at least six months to wait you have the risk of sometjing happening to the property.

id pull out.

Original poster

Smsquared · 15/08/2023 10:27

Thanks all. Some really good suggestions here. @KievLoverTwo we've secured a 4.1% interest rate as we applied back in May, and if we have to reapply it will be closer to 6.1% so keen to stick with our current mortgage offer. @Heronwatcher good point about asking for evidence of tenants being served notice and @VeeAye will see if buyer's lender will extend their offer. We can't move in with family as don't have anyone close by...our latest brainwave was to agree to complete on our sale, and then see if the buyers would allow us to remain in our house, effectively renting it from them for the 3 months until Jan. We'd have proper rental agreements drawn up etc, but would be the least disruptive way forward for our 3 year old, 8 month old and cat. The idea of moving all of us into rental, which would need to be Airbnb as it's only 2-3 months is giving me grief!

OP posts:

hotchocdrinker · 15/08/2023 13:58

If your buyers have a mortgage offer already in place and intend to move into your house and live there, then their mortgage isn't likely to be a buy-to-let mortgage. They may well be unable to rent their house to you once they own it because their mortgage provider won't let them.

TeaAndStrumpets · 16/08/2023 07:50

Re short term rental. My DD and her DH have been renting out their family home after relocating for work. They have stayed on a normal (not buy to let) mortgage for 2 years now. They had to get permission from the mortgage company to let out their house.

Postapocalypticcowgirl · 16/08/2023 08:38

The problem with this is that the tenants may not leave in January. I'm assuming a 6 month or year AST will be coming to an end. But that doesn't mean the tenants will necessarily leave on that date - if they can't find somewhere new to move to (which isn't uncommon right now) then the advice is to essentially go through the court process until either the council will house them or they do find somewhere. If they wait to be evicted, even if the landlord has done everything right, it could take a further several weeks. If the landlord has messed up in some way, it could be months.

Essentially, your sellers are asking you to take the risk for their choice to buy a property with tenants in, for me that would be a "no way" - I'd say you want to move in October and if this won't be possible you'll start looking again - at the end of the day you'll be no worse off if you don't find somewhere to move to in time.

If you really really love the house you are buying, then I guess you have no choice but at a minimum I'd want a contribution towards your costs from your vendor.

Flip