My Position, How much can i afford to drop the price?

Orange2010

Mortgage Paid 70,000
My House For Sale at: £84,950
House i like: 110,000


I need a 10% deposit.

Plus need to pay estate agent and solicitors ect.

How much will all this cost aprox and then i will have a figure in mind of what i can drop too but i know its not going to be much.

mynameisdave

Solicitor ~£1,000 (for purchase)
EA fees if sold at asking price £850 - ****EDIT*** Prbably more. My eyes seem to have made up the fact you typed 1% fee
Solicitor fees for sale (never sold a house so can't help) ?
Removal fees (never used one so cant help)?
Survey fees for new house (varies between lender)?
Valuation fee for new mortgage (varies between product and lender)?

Mortgage £70,000 paid - you have paid 70, or there is 70 outstanding?

If £70k outstanding and you sell for asking price then there is £15,000 over. You need £11,000 for meet the 10% deposit so you need to keep all the other fees below £4,000 or add extra savings to it.

sarah_elton

Costs will be:

1) Estate agent's fee for selling your property - what have you agreed with them?

2) Solicitor - for selling your place and buying the new one, budget £1k-£1,200, but ring around for quotes. There'll be the conveyancing charge, then all the disbursements and other bits and pieces. If either property is leasehold, budget a little more. You can get cheap online conveyancing but personaly I wouldn't do that for buying (where you want a thorough solicitor).

3) Mortgage fees - you'll have to apply for a new mortgage so there's the booking fee (if applicable to your product) and the survey cost (Homebuyer's Report would probably be around £300 at a guess - your bank can advise).

4) Removal costs - from £50 for hiring a van up to £??? for a full removals firm - depends entirely on what you need, how much stuff you have, how far the move is... We're paying £765 for moving us 15 miles from a 2 bed flat, but we're having the full packing service where they pack everything for us which adds a couple of hundred quid to the cost.

5) Costs at new home - make a list of any immediate work/decorating that would need doing, any new furniture, white goods etc you'd need to buy due to different rooms or layouts. Budget for everything and add a contingency. We're moving soon; this section we have budgeted at £8,500 and we've got £1,500 extra in the kitty in case we need it (move in and boiler doesn't work or something). But we're going from a 2 bed flat to a 4 bed house so need a lot of stuff.

To the above, add the £11k deposit and that's the amount you need from your savings plus the proceeds from your house sale (less outstanding mortgage).

Orange2010

thats great thanks, i need to find out exact fees but basically i cant afford to drop the price at all :-( maybe just by 1000.

Just have to keep my Fingers crossed, this whole selling thing gets you down when you have found the house you want.

Orange2010

and i OWE 70,000

Orange2010

wont need removal vans.

pawpurrs

Can you not chip something off the asking price of the house you are buying enabling you to reduce the price of yours?

Orange2010

Yes they have already knocked off alot. tried getting them to knock even more off and they refused, i dont blame them but it was worth asking.

arby

I'm not trying to be overly negative, but in 5 years you haven't been able to save any money towards the new house, so are you sure that you can cope with the much increased mortgage burden of the new house? It seems you are at the maximum financial level currently without trying to get more in debt. This is unless you have received a big pay-rise in the last few months?

lincroft1710

If you need 10% deposit (£11K), your fees/moving costs etc could be £3K+, mortgage repayment = £70K, therefore £84K+, you can't really drop house price.