6 month rule - advice please

searchlight123

i understand that it is very difficult to sell a house within 6 months of ownership due to lenders' reluctance (not quite sure why, is it due to money laundering concerns?).
anyway, how do people get over this issue when buying a property to renovate and then reselling it within the 6 month time frame? some places may only need a few weeks work on them, so a potential re-sell could be well within this time frame.
many thanks.

davidmcn

tonygold wrote: »

i understand that it is very difficult to sell a house within 6 months of ownership due to lenders' reluctance (not quite sure why, is it due to money laundering concerns?).
anyway, how do people get over this issue when buying a property to renovate and then reselling it within the 6 month time frame? some places may only need a few weeks work on them, so a potential re-sell could be well within this time frame.
many thanks.

The concern is partly about money laundering, partly about fraud based on artificially increasing the value with fake "sales" by accomplices.

Lenders are more likely to accept the position if they can be persuaded that the value has been increased by refurbishment etc works. But you might be better off just waiting until six months are up, rather than being forced to sell to a subset of buyers who have cash or broad-minded lenders.

kinger101

I'm not sure of the exact figures, but I think something like one third of all homes are cash buyers. So it might not be as much of a problem as you think. It's probably a matter of working out whether it's better to sell now, or wait for a larger pool of buyers when the limit expires (bearing in mind the cost of remortgage payments in this period).