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Quick question - part-exchange differential
starrybear
Posts: 83 Forumite
Hello,
I'm hoping someone may know the answer to this...
We're looking into the possibility of PX'ing our current (first) home.
The new build is on offer at £230k with a PX clause of "a maximum part exchange differential of 30%."
I'm probably being a complete numpty, but what is this stipulating? That my current house cannot be worth any more than £69,000?
Any insight gratefully received!
I'm hoping someone may know the answer to this...
We're looking into the possibility of PX'ing our current (first) home.
The new build is on offer at £230k with a PX clause of "a maximum part exchange differential of 30%."
I'm probably being a complete numpty, but what is this stipulating? That my current house cannot be worth any more than £69,000?
Any insight gratefully received!
0
Comments
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I read it as they will only PX if your house is worth more than £161k (70% of the new build price)0
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Be careful with PX.
New build properties have a premium attached to them as it is without also offering up your current property at a discounted value.
It also weakens your position when trying to negotiate "extras". ( Though quite how turf or flooring are extras is beyond me)0 -
No, it means your house can not be worth more than 70% of the new build.0
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Oh lordy. It's worth about £100k so I'm screwed either way then. Humph...
Thank you, unforeseen.
It's the last 3 plots on an 18 month development that they're trying to shift. Wonder what the chances of doing a deal would be....0 -
Sorry - posted before I saw the other replies. Thanks all.
They're offering 105% PX, so hopefully we wouldn't get too screwed over.0 -
And the house is reduced from £270k, which indicates just what sort of premium they load them with!0
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