6 month rule

xjambix

So we have a buyer for our flat, they’re set to move in on the 31st and we have an offer accepted on a house with no forward chain so good to move in whenever. We’ve received our mortgage offer so all is good there.

Except, the owners of the house have owned it for less than 6 months which the solicitor says might be an issue. So we might not have a home until the end of November with a 4 month old and 2 cats. I’m obviously a bit stressed by this.

Has anyone had any experience of this? The mortgage is with Nationwide if that makes any difference? Would they have given us a mortgage offer if they weren’t willing to lend on the property before the 6 months were up?

xjambix

I should add that they’re selling so quickly as the couple have now separated, nothing to do with the actual house.

Slinky

Well on the limited info you've given us, if the mortgage provider is happy to offer on the property given they must know it's only a short time since it was previously sold, it would appear the solicitor is just giving you a warning, not an instruction. If you are happy to say 'thanks for the information but we want to go ahead on the 31st' it doesn't seem there's anything actually stopping you do that. The solicitor's job involves informing you about things they find, and you may judgements whether that is an issue or not.

If you're happy to go ahead, and you've had a survey which says the property is in reasonable condition given its age then's it's up to you if you want to go ahead on 31st. Afterall, what will change in a month or two?

xjambix

I think I’m more just wanting to know if anyone’s been in the position where the property they were buying had been owned by the previous owners for less than 6 months and if the bank didn’t make them wait the full 6 months?

I’m worried that we’ll not have a place to live for the month if the bank do abide by the 6 month rule. The buyers of our flat are putting pressure on so we can’t delay them.

Can I give you any more info to help with this question?

xjambix

The solicitor said that once the offer’s in, he would contact Nationwide to see if they could not make us wait the full 6 months. They haven’t mentioned it though, it’s only the solicitor who discovered it had been owned for less than 6 months.

eddddy

xjambix wrote: »

Would they have given us a mortgage offer if they weren’t willing to lend on the property before the 6 months were up?

Did Nationwide know that the sellers had owned the house for less than 6 months - i.e. Did you tell them before they made the offer?


Here is what Nationwide say:

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.

Link: https://www.cml.org.uk/lenders-handbook/englandandwales/question-list/1813/

So it doesn't sound like a blanket ban - it sounds more like they consider each case on it's merits.

xjambix

I wasn’t aware it was an issue so I didn’t let them know when I was applying for a mortgage.

Sounds promising they seem to consider each case on its own merit. Really hoping we can purchase on the 31st as well ��

davidmcn

Slinky wrote: »

if the mortgage provider is happy to offer on the property given they must know it's only a short time since it was previously sold

What makes you think they must know? I've never heard of lenders making their own checks before issuing an offer - it's the solicitor they rely on to tell them about whether the vendor has owned for less than six months.

I don't know what their reaction is likely to be, though. OP, how does the price you've offered compare with what they paid?

xjambix

We paid £2k more than what they bought it for.

eddddy

xjambix wrote: »

We paid £2k more than what they bought it for.

Out of interest, is the previous sale showing in Land Registry's price paid data?
http://landregistry.data.gov.uk/app/ppd/

Thinking about it, Nationwide's valuer would have done a search for 'comparable' transactions - so he/she should have found the previous one.

Did the valuer value it at what you're paying? Or maybe adjust it down by £2k to match the previous transaction?

I would have thought the valuer would then mention the previous transaction in their report to Nationwide - but who knows?

steampowered

It might be a good idea to contact Nationwide directly rather than waiting for your solicitor to do it.

If that doesn't work, you could try speaking to a mortgage broker who should hopefully have an idea of which banks are most likely to lend in this situation.