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Vendor has owned house less than six months

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  • Rockporkchop
    Rockporkchop Posts: 944 Forumite
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    OP - does the vendor have a valid reason for selling the property after only six weeks? It would worry me that there is something wrong with the house or the area.
  • penguine
    penguine Posts: 1,101 Forumite
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    If you really want the house, can you take out a mortgage with another provider who will be willing to lend under these conditions?
  • westv
    westv Posts: 6,084 Forumite
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    david29dpo wrote: »
    Its the lenders. Money laundering plus any excuse not to give a loan.

    If true, the excuse of preventing money laundering is being used as an excuse far too many times IMHO.
  • ceebeeby
    ceebeeby Posts: 4,357 Forumite
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    didn't know any of this ... we bought a new build from Kerr homes, and sold it on the same day for a £25k profit (not intentionally was just one of those out of the blue windfalls), also avoided stamp duty because of buy / sell same day.
  • marcg
    marcg Posts: 177 Forumite
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    I hope you haven't paid the mortgage company any fees yet as it seems they don't want you to have a mortgage...
    I'm an ARB-registered RIBA-chartered architect. However, no advice given over the internet can be truly relied upon since the person giving the advice hasn't actually got enough information to give it with confidence. Go and pay someone!
  • JayZed
    JayZed Posts: 731 Forumite
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    This is an entirely normal and legitimate money laundering concern. Mortgage lenders - and solicitors - are required to undertake enhanced anti-money laundering checks in relation to the sale of any property that has been owned by the vendor for less than six months (which is a classic warning sign for money laundering). If the lender fails to undertake the additional checks, they lay themselves open to the risk of prosecution for facilitating money laundering.

    See, for example: http://www.lawsociety.org.uk/newsandevents/news/view=newsarticle.law?NEWSID=375873
  • AMILLIONDOLLARS
    AMILLIONDOLLARS Posts: 2,299 Forumite
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    I think the Lender are worried about valuations. I have an example on my road. A property developer bought a house for £195k last July I think it was a probate sale. He has fixed it up and its now back on the market for £320k. If I was a Lender I would be very worried about lending on this sale. Could be your Lenders have similar concerns about the property you are buying.

    LAnyway if the property developer does manage to sell he will be making a killing, in this market!!

    AMD
    Debt Free!!!
  • Milliewilly
    Milliewilly Posts: 1,081 Forumite
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    But thats why the banks have properties valued at current market values.

    If the solicitor is satisfied the money is clean I don't see why the lender should be twitchy or are they jelaous that someone is making money on the sale?
  • Doozergirl
    Doozergirl Posts: 33,813 Forumite
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    I am in the position of having accepted an offer on a property that I have owned for a month. Spoke to my solicitor today and she said it's quite standard practice and that they usually take a view on these things. Fingers crossed they do; my buyers are using Woolwich (at least it's not Halifax!)
    Everything that is supposed to be in heaven is already here on earth.
  • westv
    westv Posts: 6,084 Forumite
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    JayZed wrote: »
    This is an entirely normal and legitimate money laundering concern. Mortgage lenders - and solicitors - are required to undertake enhanced anti-money laundering checks in relation to the sale of any property that has been owned by the vendor for less than six months (which is a classic warning sign for money laundering). If the lender fails to undertake the additional checks, they lay themselves open to the risk of prosecution for facilitating money laundering.

    See, for example: http://www.lawsociety.org.uk/newsandevents/news/view=newsarticle.law?NEWSID=375873

    Doesn't make much sense to me. They EA checks you when you buy/sell. The solicitor checks you when you buy/sell. The mortage provider checks you when you buy/sell. What's the point of further restrictions?
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