Moving house

imapoorstudent

Hi. My wife and I are in the process of buying a house. It's not a house we intend to live in for the 25 year term of the mortgage though.

I'm trying to get my head around something. If we sell our house for more than we bought it for but still owe on it, what happens to that difference?

e.g.

House purchase price: £120,000
Remaining debt: £80,000
House sale price: £140,000
New house purchase price: £180,000
Remaining debt: ???

I'm confused as to what happens to the £20,000 difference between what we bought it for and what we sell it for. Is there any point in adding house to a value if you are going to sell it before paying the mortgage off?

Sorry for the dumb questions... I'm new to this.

Thrugelmir

In selling the property you'll net £60k of equity (£140k - £80k).

The new property is £180k, so you'll require a mortgage of £120k (£180k - £60k).

These figures exclude costs so aren't accurate.