How long after buying a house can you sell it?

There are many valid reasons for a homeowner wanting to sell their property soon after purchasing. Sometimes your financial situation can dictate the need to do so, or perhaps you bought the property with a view to renovate it in a short period of time; increasing its value and allowing you to generate a profit from the sale. Property prices have soared recently providing a seller’s market, so whatever the reason for wanting to sell; it’s likely that you are able to turn a profit.

There are some implications to consider if you are looking to sell your home shortly after purchasing. Even when turning a profit on the sale, there are some cost implications that will impact you as a seller that you will want to be aware of.

Capital Gains Tax (CGT)

The HMRC defines CGT as the tax applied on the profit when you sell (or ‘dispose of’) an asset that has increased in value. It is the gain you make that’s taxed, not the amount you receive. An example would be buying a painting for £5,000 and selling it later for £25,000. This transaction would mean you made a gain of £20,000 (£25,000 – £5,000) which would be taxable. If the property is a private residence, then relief may be available to reduce or remove CGT on the sale.

You are only liable to pay CGT on any property that is not your primary place of residence – i.e., your main home where you lived for at least 2 years, see the HMRC website to get more information. Other exceptions of CGT can include moving due to a natural disaster, it’s always advised to consult a tax professional regarding more complex transactions.

The “6 Month Rule”

Most mortgage lenders will not finance a purchase if the owner has not lived in or owned the property for over 6 months. If a mortgage was used for the original purchase; they need it to be registered for 6 months before they consider issuing another mortgage on the same property. These types of lenders do this to protect themselves from potential losses and to reduce the possibility of crime, such as money laundering.

This means for the majority, if you are looking to sell the property soon after purchase, you would need to find a cash buyer. This is a buyer who would not need to take out finance or a mortgage to go ahead with the purchase. Since most buyers on the market often finance their homes through a mortgage lender, it can prove difficult for a seller in this situation. 

How FastCash4Houses can help

If you need to quickly find a cash buyer, the best option available would be to use a cash buying service like FastCash4Houses. We help property owners who struggle to sell their homes or anyone looking for a quick sale, and we also pay in cash.

For those looking to sell their home in the quickest, cheapest and most convenient way, then using FastCash4Houses would be the best option. With us, you can sell your property in a quicker time frame with no estate agent or legal fees to pay.

To get your free no-obligation valuation today and to find out more about how we can help then visit our website at https://fastcash4houses.co.uk/. Or get in contact with us to speak to a member of our team directly on 01204 294356 or at [email protected]. At FastCash4Houses, we are here to support you every step of the way as you sell your property, efficiently and with care.

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