Part-exchange house

lauraalice

My boyfriend and I are looking to buy a new house.

He already has a house which is roughly worth £175,000, with about £100k left on the mortgage, plus it was bought with help to buy so they would be owed 20%.

I also have a property, worth about £75,000 with £60,000 left on the mortgage and also bought with help to buy so owe 20%.

How would this work with part-exchange? What happens with the help to buy debt, what happens with the mortgages? Essentially, if we were able to trade both properties in on help to buy, how does this work financially and how much would this count towards the new house? Really don't understand the ins and outs of how this works, so no idea what value of property we can start looking at.

Thanks in advance!

lauraalice

I mean to part-exchange the properties through a part-exchange scheme with a developer.

I know we'll not get the market value price but we are struggling to keep funding two properties at the same time and ideally just want this process to be done as quickly as possible rather than going through selling two properties and holding out for a certain price.

davidmcn

Have you found any developers offering to take two properties rather than just one? I wouldn't have thought it likely that they'd want to incur double the overheads.

Elliott.T123

Why don't you sell one of the places asap and both move into the other. You will get a far better price on it selling that way.


You then have the option of either selling the second and entering a chain or if you are really determined part-x that one.

ceh209

Elliott.T123 wrote: »

Why don't you sell one of the places asap and both move into the other. You will get a far better price on it selling that way.


You then have the option of either selling the second and entering a chain or if you are really determined part-x that one.

You could even possibly do a deal with an estate agent and have both on the market, but just proceed with whichever one gets an acceptable offer first?

Dru99

A builder is unlikely to take two homes as part-ex. To redeem your HTB loan you should check the T&C but mine stated that the value was the higher of either the sale price or surveyor valuation. Because I paid mine off without selling, the surveyor valuation was used (and he was very amenable to valuing it down!). It is unlikely that a builder will offer the surveyor valuation.

Sibz

As a previous poster has said - I would check the HTB details on bothe properties carefully - there are often (if not always) costs involved in organising applying for this etc... It may well entail a lot of paperwork... and in turn potentially higher lawyer fees etc...

I think there are too many variables in HTB schemes Ts & Cs nationwide for anyone to be able to give you any specifics on what yours will be. Have you considered a FA to go through your options?

missile

lauraalice wrote: »

I mean to part-exchange the properties through a part-exchange scheme with a developer.

I know we'll not get the market value price...e.

Not always. It rather depends on the developer. A neighbour has received 105% of the valuation for his property.

Most developers will restrict the part exchange, e.g. 2/3 of the value of the house you buy.