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Advice - new buy / part exchange / negative equity
afterthegap
Posts: 15 Forumite
Hi all,
Hope you can lend some advice! Me and my gf are looking at a new dwh in Swindon but are a little unsure of our options. We currently own a flat each, mine being shared ownership and gf's in negative equity of approx 10k of the remaining mortgage (98k).
My shared ownership flat is going on the market this week and due to the location, size and relatively small mortgage required i am hopeful of a reasonably quick sale.
The gf's flat is currently empty as the previous tennant moved out a few months ago.
Dwh are coming back to us with an estimate value with a view to a part exchange. Providing the figure is reasonable, say 90k. Would we have to find the £8k left to settle the remaining mortgage? Or is this added onto the price of the new build ?
Apologies for my lack of property knowledge!
Advice please, what would you do??
It seems our property situation is all I can think about at the moment !
Hope you can lend some advice! Me and my gf are looking at a new dwh in Swindon but are a little unsure of our options. We currently own a flat each, mine being shared ownership and gf's in negative equity of approx 10k of the remaining mortgage (98k).
My shared ownership flat is going on the market this week and due to the location, size and relatively small mortgage required i am hopeful of a reasonably quick sale.
The gf's flat is currently empty as the previous tennant moved out a few months ago.
Dwh are coming back to us with an estimate value with a view to a part exchange. Providing the figure is reasonable, say 90k. Would we have to find the £8k left to settle the remaining mortgage? Or is this added onto the price of the new build ?
Apologies for my lack of property knowledge!
Advice please, what would you do??
It seems our property situation is all I can think about at the moment !
0
Comments
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You are going to need a deposit for the new house that you are buying, maybe with a good FTB scheme from the builder you might be able to get buy with 5%.
You will also need to pay for solicitor costs and possibly stamp duty, if over 125K. Also on part-exchanges you are likely to get offered quite a bit under market value as they are going to have to try and sell it once you have moved out
How much are you hoping to make from selling your flat? How much mortgage have you got to clear?
How much is the house you are looking to buy?Now buying our second house:
Accepted offer 16/12/18. Offer accepted 26/1/19. Buyer pulled out 4/2/19. Accepted new offer 13/2/19
FTB: Offer accepted 23/2/2013 Mortgage application 28/2/2013 Valuation: 4/3/2013 Valuation ok 15/3/2013 Mortgage Offer 21/3/2013 Exchange 10/4/2013 Completion 26/4/21030 -
Well, I have the 5% deposit plus legal fees already saved. From the sale of my flat I anticipate making approx £5k as although my property is also in negative equity from the original purchase price, I have paid enough of my mortgage off to come out on top.
The house we are looking to buy is £205k0 -
Just as a slight technical point- negative equity is where the amount the you have left on the mortgage (still owe the bank) is more than the market vale of the house.
The 8k you would have to pay off and you can't put onto your new mortgage.
What else is it that you want to find out?Now buying our second house:
Accepted offer 16/12/18. Offer accepted 26/1/19. Buyer pulled out 4/2/19. Accepted new offer 13/2/19
FTB: Offer accepted 23/2/2013 Mortgage application 28/2/2013 Valuation: 4/3/2013 Valuation ok 15/3/2013 Mortgage Offer 21/3/2013 Exchange 10/4/2013 Completion 26/4/21030 -
That was basically what I wanted to find out..thanks0
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