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Part Exchanging on a New Build
KatePilling
Posts: 1 Newbie
Hi,
I'm looking for some information on part exchanging, against a home which is still being built.
We're looking to reserve a property which will be ready in just over 12 months (it's just been released). There's a strong possibility that we may part exchange our current home and I mostly understand how this works, however what I don't understand is what money gets exchanged and when...I've had trouble understanding how the Sales people have explained it as well as they've been quite vague at this stage.
When does the full deposit get paid? All our funds are tied up in our current mortgage so we can't pay the deposit until we've got the part exchange agreed.
What happens to the rest of the equity in my home? Can I access this for myself?
If we accept the part exchange, and pay the deposit some months before we move in, what happens to the additional equity I'll gain over the months by continuing to pay off my mortgage?
Sorry if these are really stupid questions, but I just want clarity so that I can make the correct calculations. I want an honest answer too, and not the sales person answer!!
Any help/advice would be welcomed!
I'm looking for some information on part exchanging, against a home which is still being built.
We're looking to reserve a property which will be ready in just over 12 months (it's just been released). There's a strong possibility that we may part exchange our current home and I mostly understand how this works, however what I don't understand is what money gets exchanged and when...I've had trouble understanding how the Sales people have explained it as well as they've been quite vague at this stage.
When does the full deposit get paid? All our funds are tied up in our current mortgage so we can't pay the deposit until we've got the part exchange agreed.
What happens to the rest of the equity in my home? Can I access this for myself?
If we accept the part exchange, and pay the deposit some months before we move in, what happens to the additional equity I'll gain over the months by continuing to pay off my mortgage?
Sorry if these are really stupid questions, but I just want clarity so that I can make the correct calculations. I want an honest answer too, and not the sales person answer!!
Any help/advice would be welcomed!
0
Comments
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You will normally pay a reservation fee. Anything from £500 to a few thousand, this is part of the sale price. There is no need for a further deposit.
The developer will engage a company to obtain valuations from 2-3 estate agents. They will be asked for 3 valuations. 1) Long term but best sale price, 2) mid term price 3)quick sale price.
Developer then makes you an offer on the property, you can accept or turn down. Normally your existing property can be no more than 70% of the property you are buying (this could change depending on developer) - So if they buy your property for 150k, you must buy a property that is being sold for at least 215k.
Once your mortgage is redeemed, you will get the balance of anything above what is owed.0 -
I know someone who wanted to part exchange their house for a new build. The developers' offered them £20k less than the quick sale price! Very different from what the sales people said and what was written in the brochure. Needless to say they didn't PX.0
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