Remortgage time-frame by lenders question

Pkhan

A friend of mine has got a cash property and wants to remortgage it so that she can acquire a second property (which is less than half the price of the first one).

I've heard the time-frame she'd have to wait from the point of the cash purchase of the property is six months. Is that the norm? Are there any lenders that may consider lending earlier?

How long does it normally take to get the paperwork done in such a scenario, so that one is ready to put in an offer for a second property?

Thank you in advance for the advice.

GMS

With less than 6 months ownership lenders will generally base lending on the purchase price rather than open market value.

Is this a residential or buy to let property?

Pkhan

Thanks for your advice.

> With less than 6 months ownership lenders will generally base lending on the purchase price rather than open market value.

I see. The open market value has been increased substantially because derelict rooms have been refurbished and brought back into a state of being able to use i.e. rent out.

Would the interest rate probably be lower if one waited six months?

> Is this a residential or buy to to property?

This is a Buy-to-Let property.

Pkhan

Can anybody advise please?

Many thanks!

holly_hobby

The 6 mth duration, is not a hard and fast rule, it depends on the lender and the reason for the swift remortgage/onward sale.

I see this is essentially an unencumbered (mortgage free) Buy To Let (BTL) app - which will be a problem if your pal doesn't have a current residential mortgage (mge) or any mge history.


Hope this helps

Holly