Yes, it can be possible to get a buy-to-let mortgage on an inherited property, even if you have owned it for less than 12 months.
A common issue is that some lenders do not like properties that have been owned for a short period, often less than 6 or 12 months. This is because they usually prefer a longer ownership history when assessing the property, the background to the application and the likely rental security.
That said, inherited properties can sometimes be treated differently. While some lenders do apply a strict 12-month rule, others are willing to waive it where the property has been inherited rather than recently purchased. There are also lenders that only require 6 months’ ownership, and some that do not impose a minimum ownership period at all.
So, subject to meeting the lender’s wider criteria, it may still be possible to raise funds on a buy-to-let basis against an inherited property.
Why Some Lenders Restrict Buy-to-Let Mortgages Within 6 or 12 Months
Lenders are often more cautious where a property has changed hands recently. In some cases, this is to reduce risk around quick resales, unusual transactions or properties where the value may be harder to assess.
With an inherited property, the circumstances are different, but the rule can still apply depending on the lender. This is why lender choice matters so much. One lender may decline purely on time owned, while another may be comfortable so long as the inheritance can be evidenced and the case fits policy in other areas.
Mortgage Options for Inherited Properties Owned for Less Than 12 Months
If you have inherited a property and want to let it out, there may still be several routes available.
Specialist Buy-to-Let Lenders
Some lenders specialise in more complex or non-standard cases, including inherited properties and applications where the property has been owned for less than 12 months.
These lenders may take a more flexible view, especially if the expected rental income stacks up, the property is lettable and your overall financial position is strong.
Using a Mortgage Broker
This is where using a broker can make a real difference. Rather than applying blindly and risking a decline, a broker can help identify which lenders are more likely to consider inherited property cases and whether the time-owned issue is likely to be a problem.
At John Charcol, we compare options across a wide range of lenders and can help match you with those whose criteria are more suited to your circumstances.
Bridging Finance
If funds are needed quickly and a standard buy-to-let mortgage is not yet available, bridging finance may be an option.
A bridge can provide short-term funding until you either meet a lender’s minimum ownership period or move onto a longer-term buy-to-let mortgage. However, bridging loans are usually more expensive than standard mortgages, so they tend to work best as a temporary solution rather than a long-term answer.
Waiting Until You Meet a Lender’s Minimum Ownership Period
In some cases, the most straightforward option is simply to wait.
Once you have owned the inherited property for 6 or 12 months, the pool of available lenders may widen and you may have access to more competitive buy-to-let mortgage options.
What Lenders Look At on an Inherited Buy-to-Let Property
Even where the ownership period is acceptable, lenders will still look at the wider case.
That can include the likely rental income, the property type and condition, your income and credit profile, your experience as a landlord if relevant, and whether probate has been completed where required.
So while the time you have owned the property matters, it is only one part of the overall assessment.
Speak to John Charcol About Buy-to-Let Mortgages on Inherited Properties
Before proceeding, it is important to weigh up the costs, risks and timescales involved with each option.
If you have inherited a property and are exploring buy-to-let mortgage options, John Charcol can help you compare lenders and understand what may be possible based on your circumstances.
We can offer more advice on buy-to-let by reading our guide, alternatively if you would like to discuss your enquiry in more detail, then please speak to one of our independent mortgage advisers on 023 8235 2300.
