Need help/advice on selling my house

mouse77

Unfortunately my girlfriend and I have decided to end things. Neither one of us can afford to buy the other one out, so we will probably have to sell. I'll give you the details of our situation. We bought the house roughly 9 months ago for £108000. We lent £93000 of the bank and paid a £15000 deposit. We also added all the additional costs to the mortgage, solicitors fee and so on. The mortgage is over a period of 25years.

What I need to know are the following. If we sell the house are we able to use the money that we get for the sale to pay off the mortgage? Do we get charged if we pay the mortgage in one go (I remember the solicitor saying that if we won the lottery, we would have to pay an extra to pay off the mortgage). How much are we looking at in fees, such as estate agent fee, legal fees, etc.

Apologies for the long post. But I need to know what we are looking to lose/owe.

surreybased

Hi,

I think what you're referring too is an early redemption fee - basically a mortgage cancellation fee, which the lender applies if the mortgage is cancelled within the agreed term. Each lender varies this so you would need check through the paperwork for your loan or speak to the lender.

MissMotivation

Your first 2 steps need to be 1) Getting the house valued - get three EA's out and use an average of the three to get an idea of how much it's worth. 2) Contact your Lender to get a mortage balance and find out what your early repayment fee is.

EA Fees vary from area to area but expect to pay between 1% and 1.6% of the figure you acheive. Solicitors fees also vary but expect to pay between £350 and £600.

I would imagine that you are cutting it fine having only bought 9 months ago AND adding your fees to the mortgage :eek: who advised this?

mouse77

Thanks for your quick respones. I shall dig through all the paper work, luckily we have everything saved in a couple of folders. We both decided to add the fees on as we put all our savings into the deopsit and didn't have enough for the fees.

Also this may sound a bit stupid, but if we sell the house for what we bought it for (£108000) and the mortgage is for (£93000). Does this basically mean we get our £15000 deopsit back in a sense?

Thanks again.

googler

mouse77 wrote: »

Also this may sound a bit stupid, but if we sell the house for what we bought it for (£108000) and the mortgage is for (£93000). Does this basically mean we get our £15000 deopsit back in a sense?

Sell for 108k, pay back mortgage lender their 93K, leaving £15k from which you need to deduct any early redemption fee that the lender charges, and your current fees for selling (1.00 - 1.6% of the selling price, plus about £500 for conveyancing, as stated above).

What's left after these deductions can be divided equally (or not) between the two of you, but it's likely to be less than £7500 each after deductions.

<sebb>

A lot of mortgages have a restriction that they wont lend if the house has been owned by it's current vendor for less than 12 months.

Shouldn't be a problem as you've only got 3 more months to go, but might be worth bearing in mind if you do sell straight away and are hoping for a quick sale.

mouse77

Thanks again for all the replies, they are helping to put my mind at ease a little. I didn't even know about the 12 month restricton rule, good to know now though. I suppose it's going to take a while anyway for us to get everything in order before we even put it on the market.