9:58 AM, 13th August 2018, About 3 years ago 1
So, you have just incorporated your properties. Now you want to sell one of them. A buyer has been found, then, at the last minute, the buyer has been refused a mortgage.
A seemly arbitrary and little known rule common to all mortgage lenders is if a property that is to be mortgaged has not been owned by a property company in excess of 6 months, no mortgage will be offered.
Understandably. a recent change in ownership of a property is a matter that is referable to a mortgage lender because a lender will want to check that there are no issues of fraud or over valuation surrounding the property.
One would have hoped that by proving an excellent and lengthy provenance of continuous ownership, HMRC sanction to incorporate, appropriate share valuations registered at Companies House and the testimony of a chartered accountant that the valuations are correct would have been sufficient. Apparently not.
This rule has caught out the buyer’s brokers and the agents, solicitors on both sides. No matter which lender the seller’s brokers approached, the answer was always the same.
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