How to calculate 'equity'

yllop1101

We're looking into the possibility of moving to a bigger home and are trying to work out how much cash we may get from the sale of ours.

We have a rough idea of what our home is currently worth, say 235k, we bought for 205k, so that's clear, potentially 30k in equity.
We also have the 20k deposit we put down.
Would we also have any cash from the mortgage payments we have made over the last few years? If so, how do we work out what this may amount to?

We would aim to port our mortgage as we are currently on a fixed term with nationwide. New home cost is around 335k.

Any help appreciated!

jennhg88

House value minus amount left on mortgage.
Get a redemption statement from your lender to see the exact number left.

glentoran99

If you are porting the mortgage and upsizing then Equity potentially doesn't matter


You are selling for 235k


Buying for 335K


You need an additional 100k from somewhere.


So its your mortagge outstanding balance +100k will be your new mortgage, no need for complicated equity calculations of deposits and purchase price etc

yllop1101

Thanks guys, how about if we want to release some cash to pay for the cost of moving, I. E. Stamp duty, solicitors and estate agent fee?

kingstreet

Add that to the amount of the mortgage to be cleared from the sale proceeds and then what you have left over is your "deposit" for the onward purchase.

kingstreet

glentoran99 wrote: »

If you are porting the mortgage and upsizing then Equity potentially doesn't matter


You are selling for 235k


Buying for 335K


You need an additional 100k from somewhere.


So its your mortagge outstanding balance +100k will be your new mortgage, no need for complicated equity calculations of deposits and purchase price etc

The existing mortgage will be repaid, even when porting, so it's easier to work from sale proceeds less existing mortgage less fees.