When you sell a house for more than what you bought it for, it can be an excellent way of making money. That’s why lots of people invest in property in the hope of making a sizeable profit.
Therefore, for people in this position, the timeframe in which you are allowed to sell your property is extremely relevant. For example, is it possible to sell a house within one month of buying it?
In most cases, the longer you keep a property after buying it, the more profit you will eventually make when the time comes to sell. This is because most houses tend to increase in value over time, and the longer you wait to sell it, the greater its value should go up.
Nevertheless, if you want to sell your property quickly after buying it, then you may be wondering whether this is possible. Read our blog below to find out.
Why might someone sell their house quickly after purchasing it?
There are many different reasons why a homeowner may wish to sell their property quickly after buying it. Firstly, the person may have encountered financial difficulties and therefore needs a lump of cash quickly in the short-term. While this usually means that they won’t have made a profit from their property, cash flow may be a higher priority for the homeowner in that circumstance.
Someone may also wish to sell their house quickly after buying it because they have discovered an issue with the property which they did not previously know about. Usually, the previous homeowner has to disclose any problems in the property survey when selling – so it is possible that this issue may only have formed since the new owner bought it. Perhaps someone moved in next door who they don’t like, or maybe their external family situation has changed and they want to relocate closer to a loved one.
It is common for property investors to sell their house not long after first buying it. If they initially purchased it to make improvements (e.g. build an extension, fix the roof or get a new driveway) to then sell the house for a higher price, they may be keen to offload the property as soon as these improvements have been made.
How soon can I sell my house after purchase?
There is no limit to how quickly you can sell a property in the UK after buying it. Once the house is legally yours, you can sell a house fast if you want to. However, there are some drawbacks of selling a house quickly which need to be considered.
Drawbacks of selling a house quickly after buying it
There are financial drawbacks to selling a house quickly after buying it. When you live in a property for a long time, its value usually increases and this allows you to sell for a profit. But if you have not lived there long, its value is unlikely to have increased, and once you factor in all the additional costs of moving house, such as conveyancing fees, moving costs and more, you may even end up losing money on the transaction.
You will typically find that a house is harder to sell if you have only purchased it recently, because prospective buyers will be wondering if there is something wrong with it. This might be a common question you encounter when conducting viewings, and it could cause potential buyers to lower their offers, or perhaps not even bid at all.
Thirdly, lots of mortgage lenders in the UK impose an early repayment charge (ERC) if you move to a different provider before the end of your fixed term. You should check your mortgage agreement to find out if an ERC is applicable – because if it is, this should be considered before you sell your house quickly after a purchase.
How long are you liable for when you sell a house in the UK?
When you sell a house in the UK, the new buyer of your property is allowed to claim damages, even after the exchange of contracts. They may do this if they feel that you have misrepresented the property in some way – for example, there are issues with the house which you did not disclose in the documents needed to sell the property.
For the buyer to sue you, the problem must be significant, and they may also need to show that it has a negative effect on the property’s value. In most instances, the buyer has up to six years to make a claim against you.
You should also keep in mind that the more time passes after the exchange of contracts, the more difficult it is for the buyer to prove that they have only recently discovered an issue.