calculating net equity from downsizing

Pchappo

Hi all,

i am downsizing my property, and porting an existing mortgage to a new property i would like to buy. I have been struggling 9i cannot get my head around it!!!) with trying to calculate the net equity i would recieve back from the downsizing, and was wondering if you all could help me! Numbers are not real - but the situation is.

old house sale - £600,000
Mortgage 1 - £100,000 (paid off)
Mortgage 2 - £250,000 (this mortgage i will port across to new property

New property - £350,000
i will also put down a deposit of £100,000 on new property which will come out of equity from old house.

so what is the net equity i would receive from old house (ignoring things like sol fees / estate agent fees / mortgage for the moment). just taking into consideration house sale and mortgage transfer.

regards

aries_163

do you mean the £100k mortgage has already been paid off, or will be from the sale?

Pchappo

it will be paid off from sale.

aries_163

£600k - £350k in mortgages = £250k equity in current house.
£100k deposit for new house out of this equity leaves you with £150k coming back to you.
That’s my maths on it anyway!

saajan_12

Pchappo wrote: »

Hi all,

i am downsizing my property, and porting an existing mortgage to a new property i would like to buy. I have been struggling 9i cannot get my head around it!!!) with trying to calculate the net equity i would recieve back from the downsizing, and was wondering if you all could help me! Numbers are not real - but the situation is.

old house sale - £600,000
Mortgage 1 - £100,000 (paid off)
Mortgage 2 - £250,000 (this mortgage i will port across to new property
--- so £250,000 equity in current house
--- and £250,000 cash from mortgage
--- = total £500,000

New property - £350,000
i will also put down a deposit of £100,000 on new property which will come out of equity from old house.
--- so £500,000 - £350,000 on new house = £150,000 for you to take home

so what is the net equity i would receive from old house (ignoring things like sol fees / estate agent fees / mortgage for the moment). just taking into consideration house sale and mortgage transfer.

regards

take home £150,000

bpj

oops - ignore this one!

aries_163

As I understand it you don’t port the actual mortgage, you port the rate. On completion of the sale you have to pay back the £250k mortgage on the old property and then effectively take out a new mortgage on the new property for £250k at the same rate. They won’t ever have that £250k in cash.