Sale/Rent/Probate question
Discussion
My FiL’s house has been on the market for some time, following him going into a care home. It took about 6 months to shift but there is now a proceedable and keen buyer and conveyancing is under way.
However, the FiL has taken a significant turn for the worse and there’s now every possibility that he may not survive long enough for the sale to complete. MrsC and SiL have LPA so they can sign whilst he’s alive, but obv not after, as LPA dies with the person.
If that happens then we assume the property won’t be able to be sold until probate is granted.
In that instance, and if the buyer is amenable, is there any impediment to agreeing an AST with the buyer such that he can complete the sale of his own house and move in to the FiL’s house as a tenant until probate is settled? That way, he doesn’t lose HIS buyer and the family don’t lose him as a buyer. Rent could be agreed at a suitable rate, and there would need to be a clause about alterations/redecoration etc, but is there anything else to take into consideration, and would it be legally possible/satisfy the lawyers?
Obviously there’s always some level of risk involved, but I’d hope that would be mitigated by the fact that the buyer has a vested interest and has also sold his current property, and so needs a home
However, the FiL has taken a significant turn for the worse and there’s now every possibility that he may not survive long enough for the sale to complete. MrsC and SiL have LPA so they can sign whilst he’s alive, but obv not after, as LPA dies with the person.
If that happens then we assume the property won’t be able to be sold until probate is granted.
In that instance, and if the buyer is amenable, is there any impediment to agreeing an AST with the buyer such that he can complete the sale of his own house and move in to the FiL’s house as a tenant until probate is settled? That way, he doesn’t lose HIS buyer and the family don’t lose him as a buyer. Rent could be agreed at a suitable rate, and there would need to be a clause about alterations/redecoration etc, but is there anything else to take into consideration, and would it be legally possible/satisfy the lawyers?
Obviously there’s always some level of risk involved, but I’d hope that would be mitigated by the fact that the buyer has a vested interest and has also sold his current property, and so needs a home
We were in identical situation with the sale of an aunt's flat and were advised by our solicitor NOT to do it. Would be easy for a tenant to change their mind and not complete the purchase.
We pushed the buyer quite hard to exchange contracts before moving in with a completion date before the expiration of six months (or choose a date that suits you).
In the end we let them stay at no charge but with option of us charging twice normal rent in the event they didn't complete in time. Worked well for us and the buyer in that they got three months rent free.
We pushed the buyer quite hard to exchange contracts before moving in with a completion date before the expiration of six months (or choose a date that suits you).
In the end we let them stay at no charge but with option of us charging twice normal rent in the event they didn't complete in time. Worked well for us and the buyer in that they got three months rent free.
ColinM50 said:
We were in identical situation with the sale of an aunt's flat and were advised by our solicitor NOT to do it. Would be easy for a tenant to change their mind and not complete the purchase.
We pushed the buyer quite hard to exchange contracts before moving in with a completion date before the expiration of six months (or choose a date that suits you).
In the end we let them stay at no charge but with option of us charging twice normal rent in the event they didn't complete in time. Worked well for us and the buyer in that they got three months rent free.
Thanks for this, and thanks @OutintheShed too, I’ll look at that. We pushed the buyer quite hard to exchange contracts before moving in with a completion date before the expiration of six months (or choose a date that suits you).
In the end we let them stay at no charge but with option of us charging twice normal rent in the event they didn't complete in time. Worked well for us and the buyer in that they got three months rent free.
@ColinM50, I’d kind of expect a solicitor to say that (they have to be 100% risk averse I guess) but in your case are you saying that you did let the buyer move in pre-completion? But post-exchange? And you had to wait for probate before you could complete?
Had a similar situation with m.i.l. who died in care just as contracts were about to be exchanged on her property sale, she had left a will and her estate was very simple. My wife wrote to the local Probate Office explaining the situation, a named person responded quickly asking for the necessary documentation to be sent for her attention which she dealt with within days and a grant of probate was issued. The Probate Office service was faultless in our view.
DarkMatter said:
Had a similar situation with m.i.l. who died in care just as contracts were about to be exchanged on her property sale, she had left a will and her estate was very simple. My wife wrote to the local Probate Office explaining the situation, a named person responded quickly asking for the necessary documentation to be sent for her attention which she dealt with within days and a grant of probate was issued. The Probate Office service was faultless in our view.
Similar situation with me when my Mum passed away in care only a few weeks after accepting offer on her house which I was dealing with under LPA.Estate was simple in terms of the will, and probate was sorted very quickly, and sale only took about a week longer than it would have done if she hadn't passed during the process.
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