selling a property - how much do I get back?

sramdeen

Apologies for such a simplistic question. I tried to search but I didn't have much success.

If I wanted to 'cash in' my mortgage and sell my property, what exactly would I get back? I am on a repayment mortgage and have 20-odd years remaining.
For arguments sake and to round up the figures, let's assume that:

I put down 30k deposit ~5 years ago
I pay back £1000 per month to the mortgage lender
I have a total mortgage of £200000

I (kind of) understand how the repayments are biased to paying off more of the interest rather than the capital at the beginning of the mortgage term and that this gradually reverses over time.

Therefore, am I correct in saying it's certainly not a case that I'd get my 30k back plus five years worth of £1000 per month repayments? What a lovely thought that would be!

Obviously I'm sure there are many fees and CGT to consider, but for now I'm only interested in the mortgage aspect of things.

Many thanks

sram

Hippychick

Contact your mortgage lender and get a redemption figure sent to you, did they not send you an annual statement in January?

You also need to get your house properly valued as it may have dropped in price.

Then use the valuation figure, deduct what you owe on the mortgage, plus estate agents fees of 2% roughly and solicitors fees of say 1k and that should tell you how much equity you have available roughly.

CGT will not be payable if you are selling your home/primary residence.

googler

2% and £1000 may be overestimation, depending on where you are in the country, but if you estimate these on the high side, you'll be pleasantly surprised when you get them cheaper at the end of the day...

Fire_Fox

sramdeen wrote: »

Apologies for such a simplistic question. I tried to search but I didn't have much success.

If I wanted to 'cash in' my mortgage and sell my property, what exactly would I get back? I am on a repayment mortgage and have 20-odd years remaining.
For arguments sake and to round up the figures, let's assume that:

I put down 30k deposit ~5 years ago
I pay back £1000 per month to the mortgage lender
I have a total mortgage of £200000

I (kind of) understand how the repayments are biased to paying off more of the interest rather than the capital at the beginning of the mortgage term and that this gradually reverses over time.

Therefore, am I correct in saying it's certainly not a case that I'd get my 30k back plus five years worth of £1000 per month repayments? What a lovely thought that would be!

Obviously I'm sure there are many fees and CGT to consider, but for now I'm only interested in the mortgage aspect of things.

Many thanks

sram

What your deposit was and repayments have been is largely irrelevant, the amount of equity you have is the selling price of the house minus what you still owe on the mortgage. Some people have found that there deposit has been completely wiped out by the falling market.

PasturesNew

You've not said how much your interest was, but let's say:
Bought house: £230k
Mortgage £200k on a repayment schedule over 25 years at 5%
Sell for £250k
Paid 5 years mortgage exactly.

At the end of the 5th year you'd owe £177,160.38 on the mortgage.

So:
Sold: £250k
Redeem mortgage (assuming no penalties or charges): £177k (rounded)
Balance: £73k

From that £73k the solicitor would then take his bill and pay your estate agent. You'd end up with over £65k in your hand.

Do it now with your real figures: http://www.calculator.net/mortgage-calculator-uk.html