Buying each others houses question

Mnn_2

I'm wondering the procedures on buying from and selling to the same people.

Basically we have a house for sale at £400k. We have £200k left on mortgage.

The people buying our house for £400k have a house for sale at £200k. We want to buy their house at exactly the same time as they buy ours.

How would the transactions work through a solicitor? Would the people buying our house have to hand over £400k and we hand over £200k or is the actual money transfer just for them to hand over £200k? I understand that the paperwork for land registry must show the proper values, but not sure on the actual financial transactions required.

If I have to give a solicitor £200k then how can I get this? Surely I can't get a mortgage for 1 day whilst the both transactions go through and a bridging loan seems a waste of time and money for the same day transaction.

Any help would be greatly appreciated

PasturesNew

It's just a paper shuffling exercise - and you end up with £200k in the bank and the new house keys. You won't have to pay something up front.

taxsaver

Part exchanges are an accepted, if relatively rare, part of the house market and any good solicitor should be more than able to deal with this for you. The other party will transfer their house to you as part of the consideration for buying yours, leaving only them needing to actually transfer any money on the day.

kingstreet

If your vendor has, or needs, a mortgage, the application process will be as normal with their solicitor paying off the mortgage on the property being sold and using the new mortgage, with the equity from the sale, to purchase the new one from you.

You're trading down and your equity will buy your purchase outright. Unless you plan to have a mortgage, you won't need one to enable you to complete.