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Vendor has owned house less than six months

I am in the process of selling my house and buying another - for the second time this year. Apart from a lot of waiting around, this time the process has been relatively smooth.

However today I was informed that my mortgage offer has been withdrawn as my vendor has owned the property for less than six months??? Has anyond else heard of this or had any experience of it. My case is currently with my lenders Exception Department - I am waiting with bated breath.
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  • Milliewilly
    Milliewilly Posts: 1,081 Forumite
    I don't see why how long the person has lived in the property should affect your mortgage offer but I am sure someone will be along in a minute with an answer. The mortgage will be issued on the basis of the valuation.

    You say you are moving for the second time in the same year - has your old deal expired with the sale of your property or are you porting your existing mortgage?
  • Sorry I haven't made myself very clear. I am not moving for the second time, I haven't moved at all yet. I sold my house earlier in the year and it all feel apart, I am now in the process of selling it again.

    The strange thing is, the house I was buying previously came back on the market with a new vendor. The people we were buying from previously sold to an investor. The investor has agreed to sell to me but the asking price was more. This has all been approved by my lender, it has gone through valuation and I have had the mortgage offer through.

    However my solicitor advised me that he is obliged to inform the lender that the vendor has owned the property for less than six months. I didn't forsee this causing any problems as I told the underwriter this myself when I was securing additional funds for the fact the asking price was more this time round.

    Then today they sent a fax to my solicitor saying they are withdrawing the offer due to the vendor owning it for less than six months. I feel so down, this seems so silly, I would just like reassurance that this has happened to someone else and there is a way round it.
  • Not that it's much help...but it could it be down to money laundering legislation?
  • westv
    westv Posts: 6,061
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    Julfulbub wrote: »
    I am in the process of selling my house and buying another - for the second time this year. Apart from a lot of waiting around, this time the process has been relatively smooth.

    However today I was informed that my mortgage offer has been withdrawn as my vendor has owned the property for less than six months??? Has anyond else heard of this or had any experience of it. My case is currently with my lenders Exception Department - I am waiting with bated breath.

    If true, it sounds ridiculous to me.
  • Doozergirl
    Doozergirl Posts: 33,776
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    Is it a new build? It's not something I've hear dof before, the only thing I could think of if it's a very new build and still qualifies as that in a lender's eyes and therefore alters the lending criteria - many won't lend at less than 75% LTV?

    I've sold a property before after owning less than six months and it's not been an issue :confused:
    Everything that is supposed to be in heaven is already here on earth.
  • westv
    westv Posts: 6,061
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    Doozergirl wrote: »
    I've sold a property before after owning less than six months and it's not been an issue :confused:

    So have I (new build) but that was 11 years ago.
  • No its not a new build. My solicitor said it is something that some lenders have started to implement and it is to do with fraud/money laundering. Having said that in his opinion he sees nothing untoward in my vendors acquisition of the property, it was just an investment opportunity.

    Some people make a living out of buying houses and selling them on, there should be a way they can look at each case if they have concerns. I am just worried that my lender will say tomorrow that this is a rule with no room for manouvere. I can't find anything about it in the small print of my offer. I just feel my lender should have made me aware of this before getting me to pay out for a second valuation survey on the property and incurring more legal fees by pursuing this purchase.
  • PasturesNew
    PasturesNew Posts: 70,698
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    I've heard of this, it is to do with money laundering - a lot of lenders are now not mortgaging properties where the current owner has had it less than 6 months.

    So it's not uncommon.
  • Are you sure its not due to the lender not lendig on it because the investors asking prices is too high ie overvalued?
  • Are you sure its not due to the lender not lendig on it because the investors asking prices is too high ie overvalued?

    Wouldn't have thought so as it went through valuation and they issued offer
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