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samtheman

Signing An Ast When Having Bought A Property?

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Are there any suggestions to deal with a rental while having just purchased a property? The AST contract I am about to sign has a 6 month break clause but even with a sale process that takes 2-3 months before I can move into the purchased property, I will have 3 months left to pay. What are my (mostly legal) options?

I am about to sign the AST and could obviously look for more short-term options but they appear fairly costly (i.e. I would not save that much in the 6 month period).

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Others may offer better advice but here goes. The LL can advertise for a new tenant (at your cost) and then you pay rent until the new tenant moves in. That way the LL does not lose rent and you get out of the commitment early. If the LL says no and want you to pay (and 'stay') for the full six months then he will know that it will not be possible to have ANY viewings until you leave and so the LL will have a potential void. You will not need a reference so the LL has no leverage.

The sensible option on both sides is to come to a deal but all too often LLs or more likely the EA is not sensible. Also check that the AST is not 6 months and then a break clause ie an 8 month commitment rather than a 6 month AST where the notice can be given after 4 months to leave after 6 months. Dates are important and esp the date you give notice (with proof) or you can be stung for an extra month if you are a day late.

Just seen where this is, May be worth trying to get this moved / or repost in the About Renting sub forum.

That is good advice thanks. I wasn't sure if it was so much about renting or buying as my main concern is that I have bought a (tenanted) property and am unsure when I will be able to move in.

I have vague memories of a lettings agent suggesting the solution you mention here but was unsure of the technicalities, most of which you have clarified i.e.I would be responsible for any finders fees.

However, my other option (I am not sure whether it is less/more complicated) would be to keep renting till the end of the contract and renting out the purchased flat. This was another option I wanted advice on.

If the vendor and I exchange contracts (we haven't yet) while the tenants are still there, how long can I keep the tenants there? If the tenancy is transferred to me as a landlord, even for a short period, does that mean that I definitely need a BTL mortgage?

If I really had to and to stay within the letter of the law, I would consider a BTL mortgage but I guess I need to apply for one right away and need to cancel my mortgage application for a residential mortgage? With the way interest rates are likely to go, when I switch the BTL mortgage to a residential one, I am assuming that the rates won't be as appealing as now...

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I just told mine that I was thinking of buying and wouldn't be signing a new AST until I knew the lay of the land (I had signed 2 x 6 month at this point) I left it at that, if they wanted to serve me they could, but they didn't. I did tell them that in the last property I rented I only signed one AST, and was then month to month for the next 4.5 years.

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I forgot to mention that I have to leave my current home and have found a new place for which I need to sign an AST. Basically, I have just made an offer to purchase a flat while also looking for a place to rent...

Temporary/Short-term accommodation does seem like an option but in a place like London, there is such a premium for short-term (almost +100%) that I'm not sure I'd gain much especially if the sale process fell through.

Edited by samtheman

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