Selling up after less than 6 months - anyone done it?

[AllesAusLiebe]

Hi folks,

I posted on here a while back about hating a house I'd just bought at the end of July.

Well, we're selling up - It hasn't got any better! I haven't got used to the road noise and we've had further issues with our delightful neighbours since my original post.

We've had an offer accepted on another property and have sold ours. Our buyers' mortgage lender has said that they won't release the funds to allow them to complete until February, because it is less than 6 months since we purchased it.

Our solicitor reckons that it's possible to circumvent this 6 month rule if we compose a letter with our reasons for wanting to move so soon. I'm cynical but willing to give anything a shot.

I've drafted a letter that cites change of work circumstances, need to be closer to family for childcare etc, but I just wondered if anyone else has come across this before?

Anyone successfully got around this? Are there any loopholes we can exploit to get this done?

Its a requirement of your buyer's solicitor (who also acts for their lender) to report to the lender than you have not owned the propery for 6 months.

It will depend on which lender it is and what their rules are.

Considering doing this myself but concerned people would be put off. Was your buyer not super suspicious as to why you are selling? Also, have you agreed a sale price less, the same or more than you paid in July?

Correct me if I'm wrong, but I thought you had to declare any issues with neighbours when selling? 🤔

You're leaving yourself open to legal action surely if you don't declare issues with neighbours?

Depends what the neighbour issues are. If the police or local council have been involved or solicitors then you have to declare it.

Pretty sure the 6mth rule was due to money laundering rules. So I doubt a letter would be able get round that to be honest.

I'd also been reluctant to put in writing that you are selling due to issue with the neighbours ... unless your buyers are fully aware of the situation.

I understand it is tempting to sell it on to someone else. So many people move because of bad neighbours and don't fess up.

However, all buyers out there - check when the property was last sold, and then check when the neighbouring properties were last sold. Any of them sold within the last year, I'd be suspicious enough to flat out ask - are the neighbours noisy? Have you had any problems with them. I'd also want to know if my immediate neighbours were rentals, and if so, are they short term AirBnBs. I don't know why more people don't check this.

@PhilInt surprisingly not. I thought we'd have to field loads of questions from prospective buyers, but we were only asked on one viewing. The market where I am (northeast) is doing well, so that helped.

We sold for slightly more than we bought for - just enough to cover our costs.

The issues we've had with our neighbours haven't involved any other agency (council/police etc), so I didn't think we needed to declare them. Have I got that wrong?

To be honest, I don't think the people who are buying will care. They're young and told us they often have house parties! Feels like some karma heading in the direction of my neighbours. . .

We sold after 15 months, no issues!

The 6 month rule is to do with lenders being burnt in the last property crash - buyers (usually buy to let investors) were offered cash incentives which they used as deposits to buy properties (with a mortgage) and then within days, they'd remortgage for the full value. Property market crashed, properties were repossessed and lenders lost £££.

As above, some lenders will not move away from the rule, some will lend if there are legitimate reasons (i.e. its been renovated and you're flipping it) - really depends on who the buyer's lender is.

@Terribleluck

We sold after 15 months, no issues!

15 months isn't an issue - its 6 months that is the problem - the Council of Mortgage Lenders requires a solicitor to report to the lender if the property has been owned for less than 6 months. Each lender then has its own rules for what it does after it has been informed (i.e. not lend at all, lend in some circumstances, wait until the 6 months has expired).

@Africa2go thanks for this. So, if the lender has already said that they're sticking to their guns with the 6 months, it's probably a no-go?

Your second post explains something else to me, too, so thanks for that. Our solicitor said that theirs had failed to disclose the length of ownership. This means that essentially, we pushed ahead (as did our vendors) unaware of any issues, and now we've hit a brick wall with the 6 months wait that we weren't anticipating.

I'm guessing that my letter won't move things along, but thought it was worth a try. . .

Thanks for the responses.

Sadly it probably is a no-go with the lender.

We bought a house last year that was resold within six months. It was all totally above board and the reasons it was being resold so quickly were completely understandable. However our original lender gave us a flat out "no". No discussion. Didn't want to know the circumstances. A letter from the seller would have been a complete waste of time.

We went with a different lender who wasn't concerned that it was being resold so quickly. But that was our decision to shop around further. If your buyers aren't prepared to do that, there's not much you can do.

I wouldn't bother with a letter they need a new lender. Tell them to go through a broker who will be able to find the right lender.

It's all down to the lender. Some just will not lend against a property owned for less than 6 months, in fact most, though some will.

On the property form that you need to complete you will need to be very careful when it comes to the issue(s) with the neighbours. Realistically you need to state what the issue has been.

The issues we've had with our neighbours haven't involved any other agency (council/police etc), so I didn't think we needed to declare them. Have I got that wrong?

The question doesn’t ask if you’ve involved other agencies. It’s one of those randomly misquoted things, like it being offence to open other peoples mail. You’ll have had to complete a form asking about any issues with neighbours. If there’s never been anything in writing, sometimes solicitors will say it doesn’t need to be declared - but it’s best to be honest, in most cases. “Writing” includes whatsapp, text, etc. Basically, if anyone could help your buyer prove that you knew about the issues and didn’t declare them.

If your solicitor knows about the issues and has advised you to stay quiet; you’d be able to rely on that advice - if they don’t, you may well want to talk to them.

But back on topic, as @Africa2go says, a letter is unlikely to make a difference to the 6 month rule. They likely need another lender, or to wait until this one will lend, if the rest of the chain will wait.

I haven't sold within 6 months but we recently moved house and took out a day one remortgage, which I understand has similar issues for lenders.

I agree with @CailleachO - your buyers need a mortgage broker to advise which lender they'll be able to use. Our only option was NatWest but thankfully they've been great and their rates are good.

Good luck with everything.

You do realise you'll be liable for capital gains tax?

@Mantlemoose

You do realise you'll be liable for capital gains tax?

There is no capital gains tax it's the primary residence.

I don't understand when people say you have to declare it
My solicitors said the question only related to actual issues to do with the property or nearby properties rather than problematic people

@TakeYourFinalPosition very interesting- yes I think you are right (as pp has just proven) people make the assumption that it's only a dispute if police or council have been involved.
I had a disagreeable neighbour, but I'd just think he was a grumpy git rather than having any real issues. His wife was lovely so I tried to inly speak to her.
I think if a neighbour is bad enough to make you move, it's declarable, but I bet few would.

We moved July 2020 and put back on the market this August. We have neighbour issues as she doesn't understand our autistic son's behaviour and is very possessive about a shared access road.
I did inform our buyers to be aware of road issue verbally. I didn't declare it on legal paper work as there is no dispute. We have never discussed it with her and only found out the access issue the day we moved in when the previous owners told us as they left.

@TakeYourFinalPosition a bit off topic but opening someone else's post is an offence under the Postal Services Act 2000
"A person commits an offence if, intending to act to a person's detriment and without reasonable excuse, he opens a postal packet which he knows or reasonably suspects has been incorrectly delivered to him"