Remortgaging inherited property

dollyd1980

Hi all, Have come across a situation that I didnt expect when dealing with an inherited property and wondered if anyone had experienced the same situation.

Iherited a property - probate completed and the property's deeds are in my name, I want to rent the property out as a buy to let after remortgaging to do some improvements and raise some capital. looking to raise less than 50% of the property's value but my mortgage broker has told me that I cant remortgage the property for 6 months from the date that I gained ownership?

Has anyone else experienced a similar sitiation or have any idea why this would be the case as even my broker isnt sure why the lenders are taking this stance?

Many Thanks

clutton_2

most lenders now say you cannot remortgage for 6 months - its part of the credit crunch ......

socrates

dollyd1980 wrote: »

Hi all, Have come across a situation that I didnt expect when dealing with an inherited property and wondered if anyone had experienced the same situation.

Iherited a property - probate completed and the property's deeds are in my name, I want to rent the property out as a buy to let after remortgaging to do some improvements and raise some capital. looking to raise less than 50% of the property's value but my mortgage broker has told me that I cant remortgage the property for 6 months from the date that I gained ownership?

Has anyone else experienced a similar sitiation or have any idea why this would be the case as even my broker isnt sure why the lenders are taking this stance?

Many Thanks

I would have asked this question on the Mortgage Board

Cazza

I am a little "out of the loop" as I left the mortgage industry nearly a year ago now but.....

The way it used to work was that you couldn't remortgage a property from a cash purchase within 6 months in order to reduce the chances of money laundering, ie - you could have bought the property with illegally obtained money, by remortgaging you then had the money back again and a legal source for having the money in the first place.

The easiest way to enforce this was for the lender to have a blanket ban on anyone doing this within the first 6 months of taking ownership. Not all lenders did it, but there was a significant number and Buy to Let was more likely to have these restrictions as there was more scope for money laundering as you could buy more properties. It may well be that more lenders have adopted this policy over the past year, in an attempt to reduce the amount of business they are doing and therefore their risk exposure, or it could be that the lenders available to you and your circumstances are all ones that happen to have this rule. HTH!

Jacka87

I would have asked this question on the Mortgage Board

Soctartes, I thought this was the mortgage board???

ShelleyC_2

Jacka87 wrote: »

I would have asked this question on the Mortgage Board

Soctartes, I thought this was the mortgage board???

It is but the thread was moved from one of the others to here :rotfl: