part exchange

matt264

I was just wondering if we could get some advice. We currently own a property worth about 120k with an outstanding mortgage of about 96k.

We are looking to possibly do a part ex for a new build however it is off plan and wont be ready for about 18 months. The sales exec have said they would first try to sell the house on our behalf but make buyers aware we couldnt move until the house was built.

What we are trying to find out is to people actually buy houses like this and also what happens with any equity we possibly get through the sale does this go towards the deposit on the new mortgage?

pawlala

Firstly you won't be offered 120K for your own property, so your equity will probably be closer to zero if you go ahead with a part-exchange. Although there are good threads on here about how to get a good deal from the developers on a new build. Secondly yes, I did similar with my part-ex albeit only a few months before moving in.

If you are able, my suggestion would be to overpay in the meantime to try and get more equity on your current property, otherwise your next mortgage will be huge?

matt264

Thankd for the response. I think we will look further into overpaying our current mortgage as your suggesting.

dimbo61

You could put your property on the market and see if it sells !
You would be in a strong position to buy the new build if you have a good deposit and a mortgage offer in place.
If you rented for 6/12 months you can move into the new build as soon as it's ready.