Thank you. I was just checking that you knew what you were doing
because many people seem to think that they can do it themselves and are
surprised when they get a bill from the solicitor acting on behalf of the
lender which is actually the same amount of money that they would have paid to
have the solicitor do the job in the first place!
There is an issue with the buyer if the buyer is buying with the
aid of a mortgage because the buyer will have to disclose that you are staying
in occupation after completion and that it is not vacant possession the lender
may refuse to lend on that basis or may insist on a buy to let mortgage. If
this proceeds regardless, and the buyer it ignores that, the buyer is in breach
of mortgage conditions. It is obviously not of concern to you but you do need
to be aware.
The reason I ask about the £750 is that for it to be enforceable
it must be a genuine measure of loss that you would incur for late completion.
On a sale price of £110,000 at 5% interest that is of just over
450 quid per month so it may be that your £750 is overstated and not
enforceable. I mention that the completeness in case it ever comes down to an
argument. There is no problem putting it in the contract would if the buyer
doesn't pay, the chances are you would not be able to enforce it. There is the
other argument of course which is that you are staying in the property and so
you haven't lost anything. At least you know the background.
The buyer will pay special damages at the rate of x per month in
respect of any delayed completion and a pro rata amount in respect of any part
of any month.
The parties agree that this is a genuine measure of damages that
the seller is entitled to in respect of breach
The lender will insist on an assured short hold tenancy which
must be for at least six months although you can end it earlier by mutual
Completion should be stated as first of March 2014 or early by
you need to consider what happens with insurance between exchange
and completion and completion and vacation and who pays for it and arranges it.
You need to covenant to keep the property in good repair during
your period of occupation.
You need to consider who is responsible for structural repairs.
You are responsible for all the utilities during your period of
you need to actually grant yourself the right to remain in
occupation and that should actually be the subject of a hold tenancy agreement
on its own
does that answer?
We are obviously not allowed to draft the document for you but
simply give you points