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I thought you were talking about moving in before exchange. Post exchange is mega low risk, but it does happen, as princeperch testifies.
Ive had 3 in maybe 2500 transactions, all were because something was discovered that hadn't been disclosed previously, none on purpose.
Based on these odds you'll probably be just fine. Just don't tell the lawyers.
Id not suggest renting it off the seller. If something happens before completion and either you can't buy it or they can't sell it, then it will be very awkward if you're living there. Maybe even more awkward given the personal connection.
I doubt your and their solicitor would knowingly let it happen, so you'd have to keep it a secret from them too.
If there's a couple of weeks' gap maybe stick your stuff in storage and Partridge it. It could be fun.