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Taking out equity when buying next home
jeslubur
Posts: 5 Forumite
Hi there,
I hope someone can help me!
Myself and my partner are looking to buy our next home and we're looking for some advice about accessing equity.
We were first time buyers 2 years ago and were now looking to take the next step and buy a larger house.
We have about £70k in equity in our current home. We'd want to use about £40k of this as a deposit for our next home, and use the remainding equity to pay stamp duty, etc, plus have some leftover for home improvements. Ideally we'd like to have £20k leftover once all fees and deposit are paid.
I've been searching all over the Internet but can't find any info regarding whether we can take a lump sum out of the equity of the sale.
Is this possible? Or do we have to use the entire equity towards the deposit?
Thanks so much!
I hope someone can help me!
Myself and my partner are looking to buy our next home and we're looking for some advice about accessing equity.
We were first time buyers 2 years ago and were now looking to take the next step and buy a larger house.
We have about £70k in equity in our current home. We'd want to use about £40k of this as a deposit for our next home, and use the remainding equity to pay stamp duty, etc, plus have some leftover for home improvements. Ideally we'd like to have £20k leftover once all fees and deposit are paid.
I've been searching all over the Internet but can't find any info regarding whether we can take a lump sum out of the equity of the sale.
Is this possible? Or do we have to use the entire equity towards the deposit?
Thanks so much!
0
Comments
-
I'm not sure if I'm understanding you question right...
But if, for example, you sell a house for £270k and you have a £200k mortgage loan (i.e. £70k in equity)...
You pay off your mortgage loan with £200k, and do whatever you like with the remaining £70k.
If you want, you can use £40k as a deposit for your next house.
(Or you can blow the whole £70k on fast cars and exotic holidays if you want!)0 -
It's fine, so long as you can get a mortgage for the house value you want with the £40k0
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