In most cases, you can sell a house as soon as you like after buying it, although the terms of some mortgages may forbid this. Contrary to popular belief, there is no legal restriction on the length of time you must own a home before a sale. However, there are a number of practical issues that need to be considered if you’re thinking of selling a house you’ve only just bought.
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Reasons for selling your home just after you’ve bought it
For most people, buying a house is a long-term commitment to provide a home for themselves and their family. Even if you’re a first-time buyer, taking your first steps on the property ladder, chances are you plan to stay for a few years at least.
However, there are occasions when you may need to sell a home you’ve just bought much sooner than this. For example:
- Change of circumstances – the best laid plans of mice and men can change incredibly fast and you may find that you suddenly can’t afford the home you have just bought. Selling fast can help you avoid issues with payment defaults and potential repossession, which could permanently damage your credit record.
- Change of job – getting a big promotion, or an exciting new opportunity in another part of the country, or even a whole different country, could mean you suddenly don’t need the home you’ve just bought (but you do need the cash to buy in your new location).
- Inheriting a home – if someone dies soon after buying their home, you may want to, or have to, sell that property quickly to meet the terms of their will and probate.
- You’re flipping the property for profit – if you’ve managed to bag a bargain property, or you’ve worked your magic to fix it up fast, you may want to sell it on for a quick profit as soon as you possibly can (assuming that you can achieve a higher price than you paid).
- You decide you don’t like it – sometimes you simply change your mind about a home after you have bought it. You might not like the area once you get to know it, you might find the neighbours too noisy, or you may discover something about the property that’s not what you thought it was. In this case, you may want to cut your losses and move as soon as you can.
How soon can you sell a house after buying it will depend on the reason for the sale. If possible, you should be open and honest with potential buyers, to put their mind at rest as to why it is that you’re selling so fast. If you have a genuine reason for selling a house after less than six months, they may be happy to proceed.
Why it may be hard to sell a home you’ve just bought
There are several reasons why it may be hard to sell a home soon after you’ve bought it, including:
- Your mortgage may not allow it – some mortgages have a clause that prevents you selling a property within a certain timeframe. This will be set out in the terms and conditions, and if you’re considering buying a home to sell on fast, you should read the contract carefully and look for this type of restriction.
- You may be penalised by your lender – if you’ve taken out a special rate mortgage, there will usually be a minimum term attached to the deal. If you pay off this type of mortgage early, you’ll normally have to pay a fee, and the earlier you pay it off, the larger that fee will be. If the fee is a percentage of the property price, this can work out very expensive.
- Your buyers may not be able to get a mortgage – many lenders will not offer a mortgage on a property that was originally purchased less than six months ago. This is commonly known as the six-month rule and it’s used to prevent money laundering and reduce the potential risks to the lender.
- Potential buyers will be suspicious – naturally, any potential buyer will want to know why you’ve changed your mind so fast about your new home. They will naturally suspect that there is a problem with the property, the neighbours or the area.
Cash homebuyers don’t rely on mortgages to buy property, and they’ll buy any home in any condition, so you won’t have a problem if you are selling for cash. However, since most cash house buying companies only offer around 80% of the property value, you may have to take a substantial loss on the deal. To find out how much cash home buyers pay for a property like yours, click the cash offer calculator button below:
The six-month ‘rule’ explained
Many people confuse the six-month rule with a law restricting home sales within a certain time frame. However, as we said at the start, there is nothing in UK law dictating how soon you can sell a house after buying it.
Strictly speaking, the so-called six-month rule you may have heard about is not a rule at all, but more of a guideline used by banks and building societies in making lending decisions. As discussed above, most lenders will not offer a mortgage on a property that has been bought very recently, even if there is a good reason for the quick sale. Again, this is not a legal issue, but is part of their voluntary efforts to prevent fraud.
If your buyer’s lender is prepared to offer them a mortgage on your home, then chances are there will be extra terms and conditions attached and there may be extra costs involved. Such mortgages are unlikely to qualify for the best offers and rates. In certain circumstances, such as buying a probate home, the six-month rule may be relaxed, but this varies from lender to lender.
It’s worth noting that the ‘six months’ referred to starts when the change of ownership is registered with HM Land Registry, not when the sale completes or when you move in. This can take several weeks to happen, and will extend the period in which mortgage companies will not be willing to lend on the property.
If you have a cash buyer, who does not require a mortgage to buy your home, then the six month rule will not apply, and you will be free to sell your home as soon as you want, as long as your own mortgage lender is happy for you to sell. This is where a cash home buyer can be a good choice. To see how much you could get for your home, click the cash offer calculator button below:
Tax implications and fees to consider
In addition to early redemption fees charged by your mortgage company if you sell your house soon after buying it, you could also find yourself liable to Capital Gains Tax on any profit you make.
Capital Gains Tax does not apply to a residential property which is currently your main address, but it will apply to profits made on second homes or investment properties.
The current Capital Gains Tax threshold for standard rate taxpayers for the tax year 2025/26 is £3,000. Any gains or profits on second home sales above this will be taxed at 18%. If you are a higher-rate taxpayer, you’ll pay 24% Capital Gains Tax. You must report and pay any Capital Gains Tax on most sales of UK property within 60 days.
How soon can you sell a Right to Buy house after you’ve bought it?
When it comes to selling homes bought under the Right to Buy scheme, naturally there are restrictions in place that dictate how soon you can sell a house after you’ve bought it. This is to prevent people from cashing in by buying a house cheaply as part of the scheme, then selling it on at full market value.
If you buy a house at a discount under the Right to Buy scheme, you will need to pay back that discount on a sliding scale if you sell it again within five years. The following rates apply:
- Resold within 1 year – 100% discount must be repaid
- Resold within 2 years – 80% discount must be repaid
- Resold within 3 years – 60% discount must be repaid
- Resold within 4 years – 40% discount must be repaid
- Resold within 5 years – 20% discount must be repaid
In addition, if you want to sell a Right to Buy home within ten years of purchase, you must first offer it back to your landlord, or to another social landlord in your area. If they do not agree to buy the property back within 8 weeks, you are free to sell it on the open market.
Expert Insight from Kelvin Elliott
We asked Kelvin Elliott, founder and buying director of myhomebuyers.co.uk how soon can you sell a house after you have bought it? This is what he had to say:
“While there are no legal restrictions dictating how soon you can sell a house after buying it, in practice it can be quite difficult, and finding a buyer who can get a mortgage on your property will be hard.
“Cash house buying companies can really save the day in these circumstances, buying your home fast whatever the circumstances, whether you have to move fast for work, your financial circumstances have suddenly changed, or you just decide you’ve made a mistake and bought the wrong house.
“We buy any house, in any circumstances, and we don’t need a mortgage, so we can often buy homes where sellers are struggling to find a buyer, delivering a useful solution to a tricky situation.”
How soon can you sell a house after buying it?
There is no restriction on how long after buying a house can you sell it, but you may face some practical and financial issues that hold up the sale and your buyers may not be able to get a mortgage if you sell within six months.
Is it legal to sell a house within 6 months of buying it?
Yes, it is perfectly legal to buy and sell a property on the same day if you want. There is nothing in UK law that prevents you from selling a house you’ve bought whenever you want.
Will my mortgage lender penalise me for selling a house soon after buying?
If you have a discount mortgage or a fixed rate, you may have to pay a penalty or an exit fee if you pay it off early. The sooner you sell, the higher this penalty is likely to be.
What are the tax implications of selling a house soon after buying it?
If you sell a house that is not your main residence, you will have to pay at least 18% Capital Gains Tax on any profit over £3,000.
Why might it be hard to sell a house soon after buying it?
As well as issues with mortgage companies, you may find that buyers are suspicious as to why you’ve decided to sell so soon after moving in. If you have a legitimate reason, you should make sure your buyers are fully aware of it to put their minds at rest.
Can I sell a probate house if the deceased only bought it recently?
Yes, you can, but you will face the same issues as selling any other home soon after it was bought. You should make sure that potential buyers are aware of the reasons for such a swift sale. Some lenders will make an exception in these circumstances and be prepared to offer buyers a mortgage.
Conclusion
There are many perfectly legitimate circumstances in which you may want to sell a home soon after buying it, and these take nothing away from the quality or suitability of the property for potential buyers.
However, even if you have a genuine reason for selling a house fast, you will inevitably face a whole host of problems, with your own mortgage company, with your finances, with your buyers’ mortgage company and even with finding a buyer in the first place.
Selling your home to a fast cash buyer will avoid many of these problems, and it will get you the fast home sale you need, whatever your reason for selling. Cash buyers do not judge you, and they will buy any home in any circumstances, with a fast, fuss-free sale in as little as 14 days.
To see what you could get for your home in a fast cash sale, with no obligation to proceed, click the button below: