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Buying and then selling a house within 6 months
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# 1
ChuiMartinez
Old 06-04-2011, 8:50 PM
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Default Buying and then selling a house within 6 months

Are there any rules against doing this? Somebody has said this to me but I can't find anything about it.

I don't mean from a mortgage providers perspective but legally.

Thanks

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# 2
googler
Old 06-04-2011, 9:13 PM
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To a certain extent, it won't matter whether it's legal or not. If the lenders won't lend to a buyer for your house that you've owned for less than six months, you'll struggle to sell it.

As far as I know, there's no legal impediment to selling within 6 mths.
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# 3
mynameisdave
Old 06-04-2011, 9:14 PM
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I dont think so, it may attarct suspicion if you were to do it with a massive deposit - money laundering and so on - but I dont think it is illegal
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# 4
ChuiMartinez
Old 06-04-2011, 9:32 PM
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yeah i can see where the ML question may come into it but there are a few friends who want to turn around a repossession for a quick buck. i didn't think there was a legal impediment and it sounded strange. all aboard then. thanks

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# 5
myhouse
Old 06-04-2011, 10:17 PM
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Nothing illegal about it. Might be worth checking up on capital gains tax though as you may need to live in a property that is your primary residence for a certain period.
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# 6
B19jon
Old 06-04-2011, 11:22 PM
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There is nothing illegal per se, however mortgage companies will be very reluctant to lend.

I know someone who got as far as having survey done etc, for the mortgage company to say they are withdrawing their offer completely due to the property has been sold 5 months and 20 days ago! (and were unwilling then to wait, it was a complete new application needed after the 6 months...)

Food for thought as they will have a limited market open to them.
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# 7
Richard Webster
Old 07-04-2011, 8:10 AM
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The fact that mortgage lenders are reluctant to lend on properties bought less than 6 months ago may not be generally known amongst potential buyers or even estate agents.

You could put it on the market and get a buyer and then a few weeks down the track the buyer discovers he can't get a mortgage....
RICHARD WEBSTER

As a conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability except to fee-paying clients.
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# 8
ladymarmalade1970
Old 07-04-2011, 9:16 AM
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We brought a house in October and moved the following June and didn't have any problems at all. We moved because they were going to put double yellow lines down our road and we didn't have personal parking.
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# 9
sonastin
Old 07-04-2011, 12:49 PM
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Quote:
Originally Posted by ChuiMartinez View Post
there are a few friends who want to turn around a repossession for a quick buck.
I've just signed a contract to buy a repossession. There is a condition in the contract - and to be registered with the land registry - that I need the (current) vendor's permission if I sell within 4 months to prevent exactly this.

How does the plan stack up if it isn't such a quick turnaround? Is the cashflow gonna be a problem? If it is, don't do it. If you can afford to hang on to the property for 6 months or maybe more, go ahead...
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# 10
JQ.
Old 07-04-2011, 1:08 PM
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Quote:
Originally Posted by ChuiMartinez View Post
yeah i can see where the ML question may come into it but there are a few friends who want to turn around a repossession for a quick buck. i didn't think there was a legal impediment and it sounded strange. all aboard then. thanks
Not really all aboad - what everyone's saying is they will not be able to sell it in the first 6 months. There will be nobody to buy the property when they come to sell it, as mortgage companies will not lend money to anyone. So the only market will be 100% cash buyers, and they are usually savvy enough to buy off the banks directly, not pay a middleman a nice chunky handling fee. Plus there's a lot less of them about.

If your mates have the cash to buy them and wait 6 months that's fine, but obviously anything could happen to the market in that time, so that presents it's own risks.
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# 11
ChuiMartinez
Old 07-04-2011, 7:35 PM
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Cheers JQ I've seen the post today about mortgage lenders not wanting to lend if a property exchanged hands less than 6 months ago. Seems very strange.

Also been told mortgage lenders are reluctant to lend on properties less than 50k. Again this seems strange.

The cash being tied up is obviously an issue. A risk which needs to be considered carefully. Thanks all.

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# 12
hostie1085
Old 08-04-2012, 7:28 PM
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Hi all,

I am new to this forum and just wanted to ask for some advice...

my slef and my fiance have just purchased our first house and moved in a month ago, upto yet it has been a living nightmare due to horrendously noisy neighbours making our life a misery!
We've attempted to try and solve the problem by speaking to them about it, and now we have resoreted to banging on the walls - none of which makes any difference.
Quite simply we cant see ourselves staying here any longer, as shift workers we really value our peace and quiet and our privacy is being invaded by their noise every single day.

what i want to know is, are there penalites if we were to put the house on the market after being here for 6 months? do we have to disclose the length of time we have lived here or could we bend the truth a little? also if we do have to disclose that we've only lived here for a short period, do we have to tell them the reason why we are selling so soon or could we tell a little white lie ie "relocating due to job change" or something like that?

We are genuinly miserable in this house and it just doesnt feel like home for either of us... the whole First Home experience has been ruined and we just want out ASAP!!
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# 13
seven-day-weekend
Old 08-04-2012, 8:15 PM
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I'm having a thick day today - what's the problem with a) selling a house before six months and b) selling one at under 50k? Why won't banks lend on them?
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# 14
xylophone
Old 09-04-2012, 12:03 AM
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Quote:
Originally Posted by hostie1085 View Post
Hi all,

I am new to this forum and just wanted to ask for some advice...

my slef and my fiance have just purchased our first house and moved in a month ago, upto yet it has been a living nightmare due to horrendously noisy neighbours making our life a misery!
We've attempted to try and solve the problem by speaking to them about it, and now we have resoreted to banging on the walls - none of which makes any difference.
Quite simply we cant see ourselves staying here any longer, as shift workers we really value our peace and quiet and our privacy is being invaded by their noise every single day.

what i want to know is, are there penalites if we were to put the house on the market after being here for 6 months? do we have to disclose the length of time we have lived here or could we bend the truth a little? also if we do have to disclose that we've only lived here for a short period, do we have to tell them the reason why we are selling so soon or could we tell a little white lie ie "relocating due to job change" or something like that?

We are genuinly miserable in this house and it just doesnt feel like home for either of us... the whole First Home experience has been ruined and we just want out ASAP!!
http://www.practicalconveyancing.co....t/view/8716/0/
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# 15
bmar71n
Old 09-04-2012, 12:08 AM
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nothing illegal with it, it is common as people buy at auction and turning around the properties very quickly at a profit
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# 16
Millie Millsters
Old 09-04-2012, 9:19 AM
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Quote:
Originally Posted by hostie1085 View Post
Hi all,

I am new to this forum and just wanted to ask for some advice...

do we have to disclose the length of time we have lived here or could we bend the truth a little?
You'll get found out if you lie, that info is freely available on the web to anyone.
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# 17
googler
Old 09-04-2012, 11:36 AM
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Quote:
Originally Posted by hostie1085 View Post
what i want to know is, are there penalites if we were to put the house on the market after being here for 6 months? do we have to disclose the length of time we have lived here or could we bend the truth a little?
How would you 'bend the truth'?

Your title deeds will show when you bought. The title deeds will be seen by your solicitor and the buyer's solicitor, who will no doubt share your length of ownership with the buyer's lender......

The only penalty for trying to sell within 6 months is the lack of someone to buy, as they'll find it difficult to find a lender willing to lend to them.....
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