Selling House Early After Buying

boxhat

I am looking to sell my house after buying as my business has suffered unexpected financial losses and I need to considerably downsize. However I only just bought the house, completed in early Jan 23. I have the land registry finally register it on end April 2023. It is obviously an awful situation we never wanted to be in.

I am unsure whether I need to wait 6 months from my purchase (jan 23) or 6 months from the land registry date?

The solicitor says 6 months from the purchase, but I assume anyone buying will get a mortgage. Does anyone know if mortgage companies go for the land registry date or the date of purchase?
Thank you

user1977

I would interpret it as being from completion date to completion date. It's not a universal rule for all lenders anyway.

ReadingTim

The Land Registry will show the completion date - it just took them 4 months to process the form.... You'll be fine from early June. 

The real problem would be if you wanted to sell before the LR had registered the fact that you owned it in the first place....

Land_Registry

Lenders apply the 6 month rule from date of completion, so the date of the transfer and legal charge on purchase/mortgage. 

As posted not all lenders/mortgage products apply the 6 month rule
Selling before it’s been registered is very rarely a problem. Sub sales happen all the time but you can also apply to expedite a pending application as there’s a linked/dependent application waiting. Expedition reduces the wait time markedly and if the application is all in order then there’s very rarely a problem 

TheJP

Forget about lenders, its a red flag to buyers and they will reduce their offer. Will you make a loss?

Green_hopeful

I don’t know the answer to your question but can you get a lodger or two to soften the cost of your house while you sort yourself out. You can get £7500 per year before you have to pay any tax on the income. I found it a good way to pay the bills when I first bought my house. 

HampshireH

TheJP said:

Forget about lenders, its a red flag to buyers and they will reduce their offer. Will you make a loss?

May reduce their offer.

Dustyevsky

HampshireH said:

TheJP said:

Forget about lenders, its a red flag to buyers and they will reduce their offer. Will you make a loss?

May reduce their offer.

I agree. If the house is on at a reasonable price and there are no glaring down-sides, there are those who will be fair. Gazundering isn't universal.

TBagpuss

HampshireH said:

TheJP said:

Forget about lenders, its a red flag to buyers and they will reduce their offer. Will you make a loss?

May reduce their offer.

Yes, seeing the house being marketed so soon can be a red flag as it can mean that a problem with the property has come to light, however, if you are willing to give an explanation (e.g. relationship having broken down, business failing/needing investment) then  many buyers will still be happy to proceed, just expect them to be a bit more thorough in their enquiries! 

boxhat

Thank you everyone for the valuable input. I will consider these points and reflect on what is a difficult situation. I'll have to weigh up staying longer to not put people off against risking further financial issues and going into more debt. Either way I will lose out, but nothing I can do about it now. 

rexmedorum

Green_hopeful said:

I don’t know the answer to your question but can you get a lodger or two to soften the cost of your house while you sort yourself out. You can get £7500 per year before you have to pay any tax on the income. I found it a good way to pay the bills when I first bought my house. 

I think this is a great idea. Even though I would personally hate to share my home, I think it would be preferable to selling up straight away. Hopefully it could be for a somewhat shorter period to get you through teh financial rough patch. You'd save yourself all the money of selling & buying something smaller. And if not at least you'll bide your time so that you don't have a really quick sale raising questions.