silly question - how much?

milktop

ok. this maybe a silly question but im really confused.

if i brought a house for 135 and ive got 128 on the mortgage, when i sell the house....say i sold for 135 do i get the 7k extra back in hard cash? say for a deposit that i need?

will that money be money in my hand so to speak?

trying to get a deposit together and only just realised this....im a correct or not or will it go stright back into new mortgage and so therefore wont be able to use it against the deposit?

mac2008

Yes, but you may find it just sits in your solicitors account before moving to wherever it is going. You also need to consider the transaction costs - Estate agents fees of 1-1.5% of sale value (so at least £1300), solicitors fees to buy and sell (say another £1k), Mortgage arrangement, valuation and surveyors fees, stamp duty on new purchase if applicable, and moving costs - that would eat up a big chunk of £7k.

illgetthere

Any extra money after the sale and after fees etc is yours yes.

Most people use equity as a deposit for the next house if they are staying on the housing ladder.