In the UK, there is no legal requirement that states you must own a home for a certain amount of time before you can sell it. Generally, a homeowner can put their property up for sale as soon as they desire.
However, certain banks, building societies, and mortgage companies won’t lend money to buyers to finance the purchase if the current owner (and seller) bought the property within the last six months.
This could limit interest in the property and make it difficult to find a buyer in the first few months. If you are looking to quickly sell a house you have recently purchased, read on to learn more.
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Legal Restrictions
Firstly, you’ll be pleased to know there are no legal restrictions on how quickly you can sell your house after buying it in England. You can sell the property as soon as you have completed the purchase and become the legal owner.
However, there are some things to consider:
- Before deciding to sell, you may want to research the housing market and the demand for properties in your area.
- If you are selling soon after buying, potential buyers may question why you are selling so quickly and assume something is wrong with the property.
- Do you have a mortgage on the property? If so, check the terms of the agreement to see if any provisions would prevent you from selling within a certain timeframe. It may cost you to exit your current mortgage, particularly if you signed up for a fixed or discounted rate. However, this might still be your best option.
- Speak to property professionals, such as an agent or a solicitor. They can help with questions about how to sell a property and provide advice on the process of selling a house in England. See our guide, ‘Do I need a solicitor to sell my house?’
Why might you want to sell your house quickly after buying it?
You may wish to sell your house quickly after purchasing it for a variety of reasons:
- Personal circumstances: A shift in personal situations, such as a job transfer, a change in family size, or the need to move nearer to family or amenities, could lead someone to sell their house soon after buying it.
- Market conditions: If the housing market is particularly strong when the property is purchased, an individual may opt to sell their house soon after buying it to capitalize on the high demand and potentially earn a profit.
- Financial considerations: If a person buys a property intending to flip it, they may sell the house soon after buying it to make a profit. Similarly, if someone acquires a property and later finds that they can’t afford the mortgage payments, they may choose to sell the house to avoid defaulting on their loan.
- Unforeseen issues with the property: If an individual discovers major issues with the property after buying it, they may decide to sell the house to avoid the cost of repairing or addressing these issues.
House sellers: what you need to know about selling a house before 6 months?
Whilst a mortgage lender can approve a loan for a house that has been owned for less than six months, any potential buyer will likely struggle to find financing.
Many UK mortgage lenders have a minimum ownership requirement, usually six months up to one year before they will consider lending on a property.
The 6 month rule explained
The Council of Mortgage Lenders (CML) has issued a set of lending guidance rules prohibiting the remortgaging of a property within six months of its registration with the Land Registry. It is important to note that this does not necessarily coincide with the date of purchase.
Therefore, it is important to check when the property was registered with the Land Registry when selling a house after 1 or 2 years in the UK; this could still be a problem if the registration has not been completed six months before the sale is agreed.
It is essential to bear in mind that if a mortgage was taken out to buy a property to refurbish it and sell it in less than six months, prospective buyers will not be able to obtain a mortgage against the newly renovated property.
This should be factored in when putting it on the market, as the mortgage will still need to be paid up until the date that it can be sold.
EXCEPTIONS: when I can sell my property within this timeframe?
Some mortgage companies will provide you with a criteria list that is acceptable for a sale within six months of purchase. Halifax’s criteria include:
- A personal representative of the registered proprietor;
- An institutional mortgagee exercising their power of sale;
- A receiver, trustee-in-bankruptcy or liquidator;
- A developer or builder selling a property acquired under a part-exchange scheme; a
- A registered Housing Provider (Housing Association) exercising a power of sale.
They also accept inherited properties where the applicant is a beneficiary but has not owned the property for 6 months. Always talk to your lender before putting your property on the market if you intend to sell it within six months of buying it.
If you are a buyer looking to purchase a property that has not been registered with the Land Registry for at least six months, and your mortgage company will not lend on it, then you should seek financial advice from a specialist who may be able to find you funding from an alternative source.
It is important to note that you will always be able to sell your property to a cash buyer, regardless of how long you have owned it for. If you have owned your property for less than six months and want to sell, send your property details to Property Saviour for a cash offer today.
Property Saviour makes buying a house in cash vs mortgage UK the easy option in such a circumstance.
Potential Delays When Trying to Sell a House Fast
If you buy a house and need to sell it soon after, you could be delayed by any of the following: the six-month rule, wary estate agents and buyers, an unrealistic asking price, poor marketing, property chains, or major structural issues.
- The six-month rule states that many mortgage companies will not approve an application to purchase a property if the current owner bought it less than six months ago. This means you’ll need to find a cash buyer if you want to sell quickly. The clock usually starts ticking once the property is registered in your name with the Land Registry, not on the day of completion.
- Estate agents and buyers may be cautious if you market the property in a short period after buying it. You’ll need to explain if there is a negative reason associated with the property, such as the discovery of major structural defects.
- It’s unwise to set an asking price much higher than what you paid for the property, as this will slow down the sale. You’ll have a better chance of finding a buyer if you set a realistic price from the start.
- If you hire an estate agent to manage the marketing, they should do a good job. If you’re not happy with their efforts, you can either ask them to up their game or sell without an agent and manage the marketing yourself.
- Property chains can cause delays if your buyer is in one. Their purchase of your house relies on multiple house sales.
- It may be more difficult to find a buyer if you want to sell fast due to major structural issues. Perhaps you underestimated the work involved or your circumstances have changed? If you know that a survey will show major structural issues, it will take longer to find a buyer.
Why Might Someone Want to Sell a House Straight after Buying It?
For most people, buying a house is an immense financial and emotional commitment; one that they take seriously. The process of an on-market house sale can be stressful and time-consuming, so why would anyone want to sell a house shortly after they have taken ownership?
There are several reasons why a homeowner might need to sell their home quickly:
- They may have inherited a property they don’t want or can’t keep;
- They may be an investor who has “flipped” a property to make a profit;
- Personal circumstances, such as death, ill-health, or a relationship breakdown, may have changed;
- Or something unexpected may have been revealed about the property after purchase, like problem neighbours or difficulty with obtaining planning permission.
Interested to know why mortgage lenders have a minimum ownership requirement?
Mortgage lenders often require a minimum ownership period to avoid back-to-back transactions, where a person is selling and buying a house at the same time, as well as day-one re-mortgages.
The Council of Mortgage Lenders issues guidance to prevent these situations and to help prevent money laundering and other financial irregularities.
If you need to sell your house before six months of ownership, it’s best to speak to your lender or a professional who can offer advice. Alternatively, you can sell to a cash house buyer, as they don’t need to worry about these restrictions since they don’t need to fund the purchase.
The Costs of Selling Your House Soon after Buying It
If you’re looking to move on soon after buying, you may incur extra selling costs. Early repayment fees are something to consider – many mortgage lenders charge a fee if you switch to a different provider before the end of your fixed term.
This is usually a percentage of the overall mortgage amount and it decreases each year of the fixed-rate deal. For instance, if you leave with three years left on the deal, you may be liable to pay 3% of the total loan amount.
On the other hand, if you end the loan with only a year left to run, you may only have to pay 1%. Be sure to look at your mortgage agreement to find out if an early repayment charge is applicable.
- Buyers may be wary of you if they know you’ve only recently bought the property. They might be wondering if there’s something wrong with the house that isn’t immediately apparent
- If the neighbours are a nightmare. As a result, they may be more likely to negotiate the price down or look for any small reason to do so, out of fear of hidden expenses they will have to cover later.
- MoneySuperMarket’s recent survey revealed that the average cost of moving house in Britain increased by 12% in 2021, from £671 to £748. This can be quite a hefty sum if you move twice in a year.
- If the property you want to sell is not your primary residence or was purchased as a buy-to-let, capital gains tax may be due on any increase in value since you bought it. Check out our blog, “What Are the Taxes on Selling a House?” for more information.
How long are you liable after selling a house in the UK?
Buying a house can be a long and complex process – and you may assume that once the sale is finished, you no longer have any responsibility.
However, because of the legal aspects of property transactions, a buyer may still be able to get compensation if the issue was present when contracts were exchanged, it is a genuine issue, and it decreases the value of the house.
The Misrepresentation Act 1967 means that even after selling your house, you could still be liable for certain issues. The buyer can make a claim against you for up to six years, or three years from when they become aware of the problem.
To avoid this, it is best to be completely honest and transparent about the condition of your property when the sale goes through.
This will help you to prevent misrepresenting the house and facing any future legal claims.
If you are concerned about possible property issues, you can consider selling to a cash buyer or a house-buying service such as Property Saviour. We can provide you with a fast, no-obligation offer and make the sale a smooth and stress-free process!
Property Saviour Says..
It is disheartening to hear that the Financial Conduct Authority estimates that more than 750,000 households could default on their mortgages in the next two years due to the cost of living crisis. Additionally, there is a further 570,000 households that are at risk of a mortgage payment shortfall.
Notably, 1.4 million households with fixed-rate mortgages will have to remortgage to a more expensive loan, which will increase their mortgage payments.
If you’re struggling with your outgoings and have been trying to sell your flat or house with the help of an online estate agent, but haven’t had much success, it may be because the property wasn’t registered with the land registry at least six months prior.
In that case, selling to a company that buys houses for cash might be a better option. Property Saviour is one such company, so don’t hesitate to contact us today.
Don’t become a statistic – take action now! If you’re wondering whether or not you can sell a house with a mortgage, or if it is a good idea to sell a house on a mortgage, look no further than Property Saviour. Our team will be happy to talk you through the process of selling to a cash buyer and make you a free, unconditional offer with no time delays and no chains.
What’s more, we’ll even pay your legal fees. There is no obligation to accept our offer, and we will never pressure you. We can buy your property for cash in a time frame that suits you, no matter the condition of your home. Get an offer now!
Property Saviour Price Promise
- The price we’ll offer is the price that you will receive with no hidden deductions.
- Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
- These valuations or surveys result in delays and price reductions later on.
- We are cash buyers. There are no surveys.
- We always provide proof of funds with every formal offer issued.
We'll Pay £1,500 Towards Your Legal Fees
- No long exclusivity agreement to sign because we are the buyers.
- You are welcome to use your own solicitor.
- If you don’t have one, we can ask our solicitors for recommendations.
- We share our solicitor’s details and issue a Memorandum of Sale.
Sell With Certainty & Speed
- Our approach is transparent and ethical, which is why sellers trust us.
- 100% Discretion guaranteed.
- If you have another buyer, you can put us in a contracts race to see who completes first.
- Complete in 10 days or at a timescale that works for you. You are in control.
