Renting our house off of our buyer whilst we renovate our property?

[Namechanged1800]

Hi all. Interested in a house that needs a full refurb. It isn’t really liveable until some work has been carried out. We have young children and pets so short term let’s aren’t really an option.

Anyone know if it’s possible to sell our house but to remain in it for 2 months or so? We could offer our buyer £10,000 off of the house price or something (worth approx 30% more than the rental value).

Obviously this wouldn’t suit all buyers. But say they are a non chain buyer - would this be a major big ask?

We also don’t have the affordability to buy the house without selling our current home.

Should be possible. You would just specify a delayed completion date ie exchange of contracts asap but with completion on a date in July, say. Your buyer may reject it but there’s probably no harm in asking. Buyer’s mortgage company may also have something to say.

There’s a big risk though - are you absolutely confident about how long the refurbishments are going to take? Don’t make the mistake of getting a quote off a builder who says “two months” and then finding you’re screwed when two months on it’s not finished but you have a contractual obligation to leave your old house.

It’s not that easy just to rent a house out
mortgage will be affected
safety certificates and insurance to name a few issues

I read this as not a delayed completion as you want the funds, but the house would no longer be owned by you and you would rent it. Personally I wouldn’t go for it as there is no guarantee you would leave( not personal against you) this is the reason that houses with sitting tenants can be difficult to sell. Most buyers with no chain are still keen to move into the house they buy.

I know you have said a short term key wouldn’t be suitable but some do take pets. Or perhaps an Air B&B type situation. Would a total refurb be done in 2 months? Do you need to do all the work before you move in?

Being a Landlord (which is what you are asking your buyer to do) is pretty complicated and not something most people would want to do

Yes, it would basically be selling with sitting tenants (with an agreed end date).

The kitchen and bathrooms aren’t really liveable with young children. And the entire house needs a rewire.

I’m confident that we could get the house to a standard well enough for there to be ‘safe’ rooms for the kids after a couple of months, although more work would still need to be done.

Yes. I didn’t know if there was a way to write this into the contract though rather than the buyer properly becoming a landlord etc.

We wouldn’t pay rent but instead knock money from the asking price of the house.

Where will your buyer live...

Well it would only work if our buyer was currently in rented, a cash buyer, currently living with parents/family or willing to go into a rental themselves.

Look up licence to occupy. I think this is what this would be. They would need to check with their mortgage company though and I believe they have to comply with everything a regular landlord would. As a buyer I wouldn't do it because 10K here or there wouldn't make much difference on the mortgage anyway. There is also the issue of you potentially overstaying and from May it's going to be really difficult making you leave.

And so maybe they are liable for the mortgage in their new home- which you live in, AND rent in their current home?
Or the mortgage on a house they dont live in for 2 months, even with a 10k price reduction over a 25 year mortgage doesnt seem like a great deal for them

You may find a buyer willing but maybe its best to consider finding yourself a short term rental whilst you do the work

*edit as its 10k off being offered not 20k as i said initially

As a buyer, I’d have absolutely zero interest in doing this, even if it was practically possible in the sense that I had somewhere else to live.

Surely the contracts would have to be that of a landlord/tenant for that period. So there would be tax implications? Regulatory implications? Insurance implications? Mortgage implications if they have a mortgage?

It would be a flat no from me.

Oh yes, of course. We’d have to offer more to offset the cost of their mortgage plus the “bonus”.

Is it really impossible for the kids? My parents were serial renovators and in most of the photos of my sister and me as tots we're playing in piles of sharp sand or palling around with builders. Good times.

Yes, I wouldn’t do it with all of that hassle. I just didn’t know if there was a way to sell with vacant possession from X date.

The house hasn’t been updated since the 50s. The kitchen and bathrooms are disgusting and we will need a full rewire. So definitely not a place for a baby and two kids under 5!

Why not pitch up a caravan or mobile home at your new property and do the work
Ive had friends do this with young kids and pets.

Well it would only work if our buyer was currently in rented, a cash buyer, currently living with parents/family or willing to go into a rental themselves.

If this is going to be a stipulation of the sale then I think you are going to put a lot of potential buyers off.

This is all hypothetical at the moment. And it’s not that uncommon to specify non-chain buyers. Although I admit the staying in the house thing would put most people off I’m sure!

I lived in worse at that age! Some friends of mine moved into a house like this last year with two under five, they just cracked on. The kids enjoy it, it's an adventure.

I think the risk to them would be too great. if you refuse to move out after the 2 months, even if you have a contract, where do they stand? Would they to take you to court to get you evicted? They would be left with paying the mortgage but the compensation they got (10K off purchase price) is long gone. For their own protection, they would have to become landlords collecting monthly rent but that would mean they would have to get a buy to let mortgage which will not be in their favour.

Would you be doing the work yourself, or paying builders/ electtricians? You'd need to be really certain of having someone lined up to start on the date you need... can you rely on that?

and what sort of a mortgage could they even get ?

We’d just move in on x date no matter the condition of the new house.

Doesn't matter about a contract that stipulates an end date. After May 1st, that doesn't exist any more.

No way would I, as a buy, agree to your terms OP. If you're willing to knock £10,000 off, then why not just take an AirBnB or similar for, say, three months? Because I can guarantee you that if you think the work will take 2 months, it will take 3 months minimum.