6 month rule on selling a house

Pixie5740

Then he'll either need to find a cash buyer or wait another 3 months for a buyer who requires a mortgage.

mozzer1966

but nobody can seem to answer the question how other people manage to do it.
where the purchasers are not cash buyers ???

ACG

There are lenders who will lend on proprties that have not been owend for 6 months by the vendor - however:
1) There are not many lenders who will.
2) Typically they are not high street lenders... which will mean higher rates for the buyer.

mozzer1966

ACG wrote: »

There are lenders who will lend on proprties that have not been owend for 6 months by the vendor - however:
1) There are not many lenders who will.
2) Typically they are not high street lenders... which will mean higher rates for the buyer.

they have an estate agent friend who turns around houses within 6 months for developers just that it isnt very well explained by mortgage companies and even solicitors dont know until they notify the mortgage company when they recieve the title deeds then the sales fall through

then ther is only one scentence in the CML handbook that isn't clear just says the lender has to be notified

ACG

If your friend intends to do this a lot, it could be worth getting a list of lenders who do not mind so you can tell the buyer that they would be limited to those particular lenders.

mozzer1966

ACG wrote: »

If your friend intends to do this a lot, it could be worth getting a list of lenders who do not mind so you can tell the buyer that they would be limited to those particular lenders.

Many thanks for the info where would be best place to find such a list

davidmcn

mozzer1966 wrote: »

then ther is only one scentence in the CML handbook that isn't clear just says the lender has to be notified

Look at the Part 2 sections for the various lenders and some explain their policies in more detail e.g. Nationwide:

We will not normally lend where there is a sub-sale or back to back transaction or one where the contract for sale is to be assigned to a third party. All circumstances where the owner/registered proprietor has owned the property for less than 6 months from purchase should be referred to the issuing office, ensuring that the following details are provided:

The name and address of the person who sold, or will be selling, the property to the applicant`s vendor;
The amount paid for the property by the applicant`s vendor;
Details of any connection between the original and the applicant`s vendor, or between either vendor and the mortgage applicant;
Details of any work carried out to the property between the two transactions;
When the two transactions took place or will take place.

Halifax:

Sub-sales, where the seller has owned the property for less than 6 months, and back to back transactions are not acceptable.

If you consider that there are reasons for the use of any of the above arrangements which mean the case is acceptable, you should report the details. We shall then consider whether or not it is acceptable.

Godiva Mortgages:

Please note that for all purchase applications the vendor must have owned the property for a minimum of 6 months prior to the application date. i.e. they must be the registered owner as recorded in the proprietorship register at HM Land Registry.

etc