Buying then renting to owner short term

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    Buying then renting to owner short term

    Buying a flat for £180k. Owner moving abroad and is having property built over there. He does not want to move out till mid November. This is OK with me.
    All paperwork going through solicitors but we have not reached exchange just yet. He has now advised that he needs to raise monies to finance the next part of his new build abroad. He has suggested that I could buy his flat sooner than November and he rents off me in the short term. He said he'd pay £200 per week and pointed out that this would be a better return than bank on £180,000.
    On the face of it I could do this as I am buying without mortgage and have elsewhere to live in the short term.
    Please can anyone give advice? What are the pitfalls (if any).
    He seems a reasonable bloke and if we could work something out to our mutual benefit all well and good but if it was a hassle for me I wont do it.
    I assume we would go through the agents who are selling the property for him and so they would take a percentage. Would I also have to pay for vetting and start up agreements etc? These charges may be out of proportion to the 6 weeks or so he may be renting.

    Would be very grateful for any advice. Thanks.

    #2
    SARB regulation

    You cannot proceed with selling and renting back unless you have FSA regulation approval, otherwise, you will be breaking the law.
    see Sell and Rent Back Regulation

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      #3
      Thanks

      Gosh, thought this would be a simple thing to sort out!

      Havent been into all the info yet but looks quite overwhelming. Many thanks for such a prompt reply - bit of bedtime reading!

      Cheers

      Stoker 48

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        #4
        Originally posted by havensRus View Post
        You cannot proceed with selling and renting back unless you have FSA regulation approval, otherwise, you will be breaking the law.
        see Sell and Rent Back Regulation
        Didn't another LZ thread on this topic establish that someone so doing not by way of business but as a 'one-off' need not comply?
        JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
        1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
        2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
        3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
        4. *- Contact info: click on my name (blue-highlight link).

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          #5
          Originally posted by jeffrey View Post
          Didn't another LZ thread on this topic establish that someone so doing not by way of business but as a 'one-off' need not comply?
          Yes, http://www.landlordzone.co.uk/forums...d.php?p=236769, in particular post #7.

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