moving house

mrsmessy92

Hello everyone,
I'm new so please be nice to me
I need your help so here goes..
Me and my other half bought a house together, now we want to start a family together.
This house (house 1) was a family member's, it was valued at £150, 000 to £160, 000 if it was done up (needed to be modernised) but she was told to accept £ 140, 000.
We paid 135, 000.
We've done all the work the estate agent told us to do apart from new bathroom.
He is confident we'll get 150, 000 for it.
So obviously there's equity in the house.
I've seen a house I like (house 2) which costs £147, 500.
How does it work in terms of the equity and deposit and is it worth us moving?
Please help!

MallyGirl

is house 2 significantly better than house 1 as they seem worth about the same and your equity will get eaten into by fees

~Beanie~

How much equity is there, how much is your outstanding mortgage?

TBagpuss

It's going to cost you, as you will pay legal fees, estate agents fees, stamp duty and the cost of a removal company. You also need to check your position in relation to your mortgage - is it fully portable? If not, you may have to pay early redemption penalties and an arrangement fee for a new mortgage, and depending on your current deal, may end up with a higher interest rate (or a lower one, of course!)

So you would need to look at what those things will cost *you*, and whether it is worth it to *you* to spend that in order to get the new house.

You'll normally be in a chain of sellers and buyers - your buyer will pay a deposit, and usually that can then be used by you to pay your deposit on the new house.

With the equity, your buyer's solicitor sends the full price to your solicitor, who uses it to pay off your mortgage. The lender for your new property pays the mortgage money to your solicitor and they send this, together with the balance of your equity, to your buyer. You will have to make sure that your solicitor has enough money from you on top to pay the estate agents, their own costs and the tax .