Can fees be paid after sale of house

Safm

Hi sorry if this question has been previously asked but I am planning on selling my house next year to upsize - we should have about 60k equity in the house and I plan to put a 40k deposit down leaving 20k for renovations if require etc

However, I do not have any money upfront can any advise what will be paid upfront or can I pay fees including solicitors etc after I have sold as I can prove I have the money comings. If this is not possible I'll obviously start saving

Thank you in advance

hazyjo

There will be certain amounts you have to pay the solicitor - searches for new property, survey, erm, can't think what else, it's late (and I'm half asleep and actually buying a house myself). Solicitors/stamp duty, estate agents (presume not an online one, although you can often pay on completion), etc are paid on completion from the proceeds of the house - presuming there is enough equity. If not and you're promising the money from somewhere else, that would probably cause a problem.

Tom99

[FONT=Verdana, sans-serif]You will need to come up with a deposit on exchange of contracts, usually 10% of the price. You might be able to use your own purchasers deposit towards that though.[/FONT]

toc25

We are using the money from the sale of our house for most stuff. We have needed very little money up front. Money for searches which was about £300, And about £400 when we applied for the mortgage for the survey and some sort of fee they charged. We haven't had to pay anything else up front.

We haven't needed a 10% deposit it's usually passed up the chain so don't worry about that either.

AnotherJoe

If you have no money at all now, but could save, what's happening to that money you could save at the moment ???

saajan_12

Moneys needed before completion:
- solicitor fees on account (£500-2,000 depending on your sols)
- mortgage broker fee (if any, expect £250)
- survey fee (if any, expect £300-1000)
- mortgage application fee (if not added to mortgage, expect £0-2000)
- exchange deposit top up **

** Your buyer should pay you a 10% deposit on exchange, which you can pass up the chain to you seller. However as you are upsizing, 10% of your sale is less than 10% of your purchase, and your buyer may have paid a <10% deposit anyway. You can (a) agree a lower % exchange deposit with your seller; or (b) top up your buyer's deposit with your own money - this would be payable just before exchange.

Moneys needed on/after completion:
- EA commission
- stamp duty
- balance of solicitors fees if any
- balance of equity / own funds towards purchase price
- mortgage application fee (if added to the mortgage)

Debtslayer

If I were you I'd start saving, you will be applying for a bigger mortgage and I doubt mortgage lenders would be willing to lend more if you've got no money for fees etc or any savings.
You say you can start saving? What's happening to this money now? It's always good idea to have some savings even if not moving house

Llerryt

Hi,

We just did a similar move, took out extra mortgage and up sized.
Up front costs were £300 to the solicitor for searched and the removal company wanted balance paid before the move but that was our choice to use them.
All other fees, solicitor for buying and selling, and estate agents, were taken from the proceeds of the sale, and remaining balance paid to us the same day.
Our mortgage was no fee and we had a basic valuation on new house so no fee there.

Hope this helps

Safm

Hi thank you for all the replies I have also spoken to the bank and they have clarified things in terms of what will need to be paid up front and what doesn't do feeling quite positive as it would not be a lot.

I'm currently on maternity leave and start work again next month which is when I will start saving ... all previous savings went on the baby and maternity leave

I currently have £58k left on this mortgage and house should sell for at least 120k I pls. To put 40k on as a deposit and have 10k for any work leaving 10k for fees etc which is why if I don't have to save to move I would rather start the process

Safm

Forgot to mention I want to buy a house in the region of 150k so not too much more a monthly cost will just change from a 12 year mortgage to a 25 year one I'm only 28 so that should not be a problem and bank seemed very positive with my plans

toc25

You won't need 10k for fees. The house I'm buying is abit more than yours and in total our fees to pay on completion are 5500k. You are doing pretty much what we are doing. We have a big chunk of equity that is covering everything. I started the process with 1k in savings and have had months to keep on saving anyway because it takes a while.

Good luck