What happens when you sell your house?

iky2012

Hi everyone,

Just wondering if anyone can help. I am about to put my flat up for sale and buy a house with my girlfriend. We are unsure what happens when the flat is sold regarding the mortgage, in particular the deposit I put down to begin with.

I purchased the flat 2 years ago for £92,000 (and had a 25%/£23k deposit). I dont think im going to be negative equity but we just wondered how, and at what stage the deposit and profit comes back to me?

The girlfriend thinks that the money will come back to me when the new mortgage is paid to my mortgage lender and i will receive a bank transfer, but im sure that its more complicated than this.

Anyone have any ideas?

Cheers :money:

G_M

If you are just sellig the flat, then at the point of Completion:
* you buyer will pay the purchase price to your solicitor (assuming you are using one)
* the solicitor will pay off your mortgage
* the solicitor will pay your estate agent (if appropriate)
* the solicitor will deduct hisown fees/ disbursements
* then he will pass you whatever is left - usually within a day or two. If you pay a CHAPS fee he can transfer it same day

If you are simultaneously buying another property, then in addition
* your solicitor will get hold of your new mortgage money (if you are taking out a new mortgage)
* he will also get from you any additional deposit amount he needs to add to the money from your sale (above)
* he will pay the seller of your new property
* he will pay the stamp duty on your purchase (if appropriate)

Normally he will send you a 'Completion Statement' in advance of all this, showing the calculations, and telling you whetehr you need to send him additional money or whether he will have some money left over to return to you.

iky2012

Hi. Thanks for your reply. It makes alot more sense now!

All the best