House sale less than 6 months after buying

lauravenue · 28 February 2017 at 4:08PM

Hi all,

I posted a few months ago, before my house sale went through, saying that we had changed our mind about the area but it was too late to pull out. We bought our house on 16th December, and have been here 2 and a bit months now.

I have spoken to Halifax and Purple bricks about re selling so soon, and both have said it's possible, however Halifax said that there is a law that under 6 months of buying a house you cannot sell it again. They were slightly vague, so I just wondered if someone can confirm?

We have the money available for fees to sell our house, and fees to buy a new house, so that is covered, it's just when we are able to do it is our issue. They did say they think someone applying for a mortgage on our house wouldn't be able to get one if it hadn't been owned for 6 months yet, is that also true?

I am just trying to work out whether I should put the house up for sale 3/4 months after buying, as chances are we won't get an offer straight away, I assume it will take a while, so hopefully not to have that 6 month issue, or should I wait until 6 months after just to make sure that there are definitely no issues.

The estate agent said that as we had reason we wanted to move, and that reason was in place before we even purchased, that he thinks explaining to new buyers that it is life related, not house related, that shouldn't hopefully cause too much of an issue.

Any advice would be greatly appreciated.

Slithery · 28 February 2017 at 4:13PM

There's no law on reselling a property so soon, it's just that a lot of mortgage companies won't lend on a house that has been purchased less than 6 months ago thus severely limiting your market.

Pixie5740 · 28 February 2017 at 4:15PM

The issue you face is if your buyer requires a mortgage. Mortgage lenders do not (generally speaking) grant mortgages to buy properties that have been owned by the seller less than 6 months. This is to help comply with anti money laundering regulations. If you can find a cash buyer then it should alleviate this problem.

eddddy · 28 February 2017 at 4:19PM

You can start marketing it before 6 months is up, but warn your buyers not to put in a mortgage application before 6 months is up.

Here's what some mortgage lenders say about the "6 month rule": https://www.cml.org.uk/lenders-handbook/englandandwales/question-list/1813/

societys_child · 28 February 2017 at 4:30PM

As above, you could put it on the market now but be open and honest with any prospective buyers.

G_M · 28 February 2017 at 4:58PM

Not a problem for a cash buyer.

If buyer is getting a mortgage see advice above.

dirty_magic · 28 February 2017 at 7:25PM

Penitent wrote: »

In all honesty, I wouldn't even view a house that was put back on the market this quickly. Maybe I'm an unusually distrustful sort, but as soon as I saw the previous sale date I'd just assume bad area, bad neighbours or bad house and click on the next one.

(Edit: Sorry, I seem to be a bit doom-and-gloom today. It's an awful situation you've found yourself in, I really wish there was an easier "fix".)

We did view one that was on the market after 6 months. The owner said they were moving so soon because they were outside of a school catchment area for the school he wanted, but to be honest I didn't believe him. I wondered why he didn't pull out before the sale because the catchment areas hadn't changed.

teddysmum · 28 February 2017 at 8:13PM

If it's marketed now and , because of the 6 month period affecting people's chance of getting a mortgage, the house gets little early interest, later viewers may be put off by the fact that it's been on the market for so long, suspecting a problem.

ellie27 · 28 February 2017 at 9:53PM

Just wondering what is so wrong with the area? Why don't you like it? Viewers will ask why you are selling? They will assume there is something wrong with the house/area.

AnieKitten · 1 March 2017 at 12:11PM

I would be inclined to leave the sale of the house as long as you possibly can - at least 6 months. Even with a genuine reason to sell, the buyers would be suspicious - I know I would, and I would be imagining the worse.

I would say the risk of marketing it early (i.e. it staying on the market too long and buyers assuming they can offer below the asking price etc. etc.) is greater than holding on to it for a few months. I appreciate I don't understand the situation, its just my perspective on it.

ellie27 · 1 March 2017 at 1:47PM

Penitent wrote: »

According to the OP's previous thread, their family situation changed rather suddenly, so they now need to move to a different area.

http://forums.moneysavingexpert.com/showthread.php?t=5572110

If I was a potential buyer I still wouldnt believe it if the sellers told me they had to move so soon due to 'family circumstances'. It would be enough to put many folk off.

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House sale less than 6 months after buying

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