Equity From Sale

embutterfly

Hi there,

I'm hoping one of you can help me. We are looking to sel our property and buy a more expensive, larger house. I unclear about how equity works. If we make a profit of £100k, do we have to put all of this into the new house? We would need a £50k deposit, which leaves us with £50k. Can we use this remaining money to pay the stamp duty and put into our savings? Can the stamp duty be paid after the sale of our house/completion of new house?

Many thanks in advance.
Emma

alex_163163

No you put as much equity into the deposit as you need to. The money is yors at the end of the selling transaction. If you don't need all of it then the remainder will be paid back to you by your solicitor once the sale has completed.
Stamp duty will be taken care of on the day of purchase of the new house by your solicitor, so yes the money will come out of the equity you are not putting into the deposit. As will the cost of the legal fees.

embutterfly

Thank you so much for your help

minimike2

Are you tied into your mortgage product / will you be looking at all lenders?

A small number of lenders insist on 100% of any equity being used toward the purchase of the next property, so worth checking with your current lender first if you intend on porting a product / staying with them.