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New Build deposit from Equnity
ksos
Posts: 1 Newbie
Hi
I'd like to buy new build flat with Help to Buy scheme and 5% deposit. I currently own shared ownership flat (25%). I've done a valuation and the equity is enough to cover 5% deposit and solicitor fees on new build flat. I've also spoken to new build agent and they said in order to apply and reserve new flat I have to have my flat to be STC and exchange within 28days.
Question is if money for deposit during exchange can come from my equity ? (which will be less than 5% if I sold my flat to FTB) . Let's say deposit required is 10k , I have equity of my flat 15k and someone who buys my flat puts 10% off my share (5k) . Is that even doable ?
I'd like to buy new build flat with Help to Buy scheme and 5% deposit. I currently own shared ownership flat (25%). I've done a valuation and the equity is enough to cover 5% deposit and solicitor fees on new build flat. I've also spoken to new build agent and they said in order to apply and reserve new flat I have to have my flat to be STC and exchange within 28days.
Question is if money for deposit during exchange can come from my equity ? (which will be less than 5% if I sold my flat to FTB) . Let's say deposit required is 10k , I have equity of my flat 15k and someone who buys my flat puts 10% off my share (5k) . Is that even doable ?
0
Comments
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You need to establish this with your solicitor in conjunction with the builder's solicitor.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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