When do you get equity back?

kerry133

Hi

We're buying a new build and so won't complete for a couple of months, but are using equity from the old house to put the deposit down for exchange, there is enough equity to pay that conveyor frees stamp duty and then some over, when will we get back the some over is it on exchange or completion?

Thanks

Alter_ego

After your buyer pays,, so after completion.

kerry133

I should have mentioned were part exing the house if that makes a difference

Alter_ego

kerry133 wrote: »

I should have mentioned were part exing the house if that makes a difference

Nope......

Hoploz

It's normal in a chain for the deposit paid on exchange to be passed up the chain, so the sale deposit passes up to become the purchase deposit (and if the amount is more you make up the difference in cash)

Richard_Webster

If you part exchanging then you can't get any money out of your present house until the sale of it completes which will be the same time as the completion of the purchase of the new build.

A builder will often exchange without an exchange deposit in a case like this because they know all your money is tied up in your present house.

If the builder wants a cash deposit at exchange you will have to find the cash from your savings, if any. If you borrow money for this then your mortgage lender may not be happy.

If by "deposit" you mean the difference between purchase price and your mortgage and you are buying a cheaper property than your present one, then any money left over aftyere you have sold your house, paid off your prsent mortgage and bought the new house, will come back after completion and could pay SDLT, fees etc.