Part Ex On New Build The Numbers

markiepat

Hello,
How does it work, using the numbers below am I right
New Build Price 180K
They buy Mine 110K

My outstanding mortgage is 85K.
Am I right in thinking in theory only need new mortgage for 70K. Is it same theory as part ex against car.

Cheers
mark

Bermuda_John

you get 110 - 85 = 25k

you buy new house for 180 ..... probably need 25% deposit .... £45k ..... new mortgage is therefore 135k

Hope you have 20k spare

lellow_lorry

Bernuda john beat me to it!
The way I see it is you would need a mortgage as follows:
Sale of property110k
less mortgage 85k]
Money left 25k


Purchase new property 180k
deposit 25k
balance rquired by mortgage 155k


Please bear in mind stamp duty on a 180k property is £1800. I would negotiate the price down to 175k(currently exempt) ie 175k for new build 105k for your house will save you £1800 but cost the builder nothing.

Also check with your lending company that they will lend the 155k as most lenders at the moment are only giving LTV of 75% against new builds and not providing mortgages against new build flats.if you require 25% you will need to increase your deposit

markiepat

so apart from a guaranteed buyer what is the point.
Surely you only pay/require mortgage for the difference