part exchange considered? pro's an cons

urbancookie1

Hi,

Been to look at a house today, just noticed on the details that it say's part exchanged considered. can someone tell me what does this mean?

I know it means well have theres and they'll have our's but what are the pro's and cons of doing a house sale this way.

Ours is the cheeper of the 2 by about £80.000

PasturesNew

My sister did this years ago. She's still pleased with it to this day.
She went to look at a bigger house - and the man wanted a smaller one. He went to look at hers, liked it and they did the part-exchange.

Well, depending on the prices, it could reduce stamp duty.

e.g. if your house were £140k and the one you want to buy is, say, £260k ... It would cost you another £120k mortgage to buy it. And they would have your house + £120k in the bank.

So, instead, if you sold them yours at £120k and bought theirs for £240k, you would still have a mortgage at £120k and they would have your house + £120k in the bank ....

but

They'd not pay 1% stamp duty on £140k (£1400)
And you'd not pay 3% stamp duty on £260k (£7800)

It depends on how much each house is "worth" and how much mortgage has outstanding how flexible this is really.

But it comes down in the first instance to both of you having a house the other one wants.

terrierlady

new home or old?