Can I pay associated moving fees with equity? (Stamp duty, solicitors fees etc?)

PatrickC

Hi there,

So just to make things a bit easier. Say I bought a housr 2 years ago and got a mortgage of 210 on it. My mortgage is now 190k and the house is worth 300k. I want to move in a similar priced property (for arguments sake let's say 300k) but I want a higher LTV. So I want to now move and have a mortgage of say 230k (to release some cash after moving). Would I be able to pay for all my associated fees from selling and buying with this released equity? Or am I going to have to have the stamp duty and fees in cash before selling and buying? I was a first time buyer 2 years ago and I thought that was confusing enough. I can't seem to find a straight answer about how selling and buying works and timelines/budgets.

Hope someone can help!

PatrickC

So in my head the above example would mean I'd have 40k in my bank after moving. Can I pay for everything with that after? Or does it all need to be paid before completion and hence this isn't possible at all and I'll need to save up for the stamp duty and fees?

Lu_Lu

That's what we are doing. Selling for 200k and will have 75k equity. Our new house deposit, stamp duty, estate agents and solicitors fees are coming out of that before we get the balance of equity.

betmunch

Yes you can.

Nice and simple answer!

You will need to pay a few things up front such as survey fees and solicitor initial costs, but the bulk of it can come from the proceeds of the sale, then you just put down a smaller deposit on the new place and keep the difference for yourself

PatrickC

Perfect, thanks so much for your quick and helpful responses