Completion Statement and equity

jay1464

Hi

Can someone help. I am soon to exchange and complete on a new house purchase. I am selling my existing property as part of the move. Can the equity that i have in my existing property be used to pay the fees (solictor, stamp duty, estate agents) required on the completion statement before completion?

This situation is made all the more complicated by the fact that i'm not taking out a totally new mortage but instead porting and topping up my mortgage to buy the new house. However, i am assuming that for the purposes of this i should ignore the fact that my mortgage remains active.

G_M

Fees are usually paid on Completion.

Your solicitor (assuming you are using one) will receive the top-up mortgage, the sale proceeds, + any additional funds needed from you.

He will pay the purchase price, then pay the EA and any other outstanding fees, and deduct his fees.

Anything left over will be returned to you.

kingstreet

jay1464 wrote: »

Hi

Can someone help. I am soon to exchange and complete on a new house purchase. I am selling my existing property as part of the move. Can the equity that i have in my existing property be used to pay the fees (solictor, stamp duty, estate agents) required on the completion statement before completion?

This situation is made all the more complicated by the fact that i'm not taking out a totally new mortage but instead porting and topping up my mortgage to buy the new house. However, i am assuming that for the purposes of this i should ignore the fact that my mortgage remains active.

You are taking out a totally new mortgage.

Your current mortgage is fully repaid from the sale proceeds. The balance funds can be used as the deposit for the next property and to pay any fees, together with the money from the new mortgage which completes the purchase funds.

All you are transferring is the old rate on part of your new mortgage.