Help please

Lewigreg081281

Sorry may be a stupid question:

Basically we took out a mortgage at 110k. It now stands at 104k (so we've paid 6k basically), we are considering selling at the moment and the property has been valued at 120k. I'd be more thinking 115k would be roughly what we'd get.

With these figures, how much would we have to put against our next property? I'd worked it out at 11k based on us getting 115k - is this correct?

Thanks

Caz3121

what price range are you looking at - you will likely need 10% deposit, more if you want a decent rate
If you sell for £115 you need to deduct the outstanding mortgage, estate agency fees etc and you will be left with an amount that will come to you that you can use towards your deposit
If you want to buy at say £150k you will need £15k+ deposit plus buying fees, stamp duty etc

Lewigreg081281

Looking at 155k then budgeting around 4k in fees for stamp duty etc.

Just wondering what we'd get from ours. I had it at 11k, my mate has said you get what you've paid in to (so another 6k).

It's confusing!!!!!!!


Thanks

kingstreet

If you sell for £115k and your existing mortgage is £104k, the simple arithmetic is there will be £11k left over when you complete.

Your solicitor will then deduct his fees and any agent fees, leaving the balance, plus any cash you choose to "invest" in creating the deposit for your next purchase.

As caz said, you'll need at least 10% deposit (£15k on £150k purchase price) plus the buying fees and stamp duty.

So here's a quick example completion statement;-

Sale price £115,000
Mortgage £104,000

Residue £11,000
EA Fees £2070 (based on 1.5% + VAT)
Solicitor £540 (based on £450 + VAT)

Leaves £8390

Purchase Price £150,000

Mortgage £135,000
Solicitor £2,400 (fee + VAT + stamp duty + disbursements)

Balance £17,400 needed, less £8,390 in hand means
deposit of £9,010 required to complete purchase.