How to sell first home and pay for new home? Timeline?

p00hsticks

**dancingbutterfly** wrote: »

Think I have discovered that I will use the deposit I receive from my buyer as exchange deposit for my new place. This will probably not be the 10%. And hopefully the seller and solicitor is happy with that. And that I can't really use the equity?

The other possibility is to exchange and complete on the same day - this effectively negates the need to find money up front for a deposit on exchange.

Of course, you only have to be a regular visitor to this board to see evidence why exchanging and completing at the same time is generally not a good idea....

**dancingbutterfly**

Thanks both

G_M

VincentVincent wrote: »

If you have £160k left on the mortgage and sell the home for £195k, then you'll have £35k equity. That difference between outstanding mortgage and sale value is what equity is.

I have no idea where this £8,750 equity and needing to find £16k cash idea is coming from.

Nor me today!

SunnyCat

Have you budgeted for other fees like solicitor, stamp duty, etc?

00ec25

G_M wrote: »

Of course my maths may be wrong.....

G_M wrote: »

Nor me today!

simple, you got your sums correct, but you did the wrong sum

original price 175,000 - original mortgage 166,250 = equity 8,750, ie the original 5% deposit

the "real" sum: equity on sale:
selling price 195,000 (I agree with you, a somewhat unlikely prospect) - o/s mortgage 160,000 (I agree with you, a totally unlikely amount paid off in so short a time) = equity 35,000

**dancingbutterfly**

00ec25 wrote: »

simple, you got your sums correct, but you did the wrong sum

original price 175,000 - original mortgage 166,250 = equity 8,750, ie the original 5% deposit

the "real" sum: equity on sale:
selling price 195,000 (I agree with you, a somewhat unlikely prospect) - o/s mortgage 160,000 (I agree with you, a totally unlikely amount paid off in so short a time) = equity 35,000

I have 163k left on my mortgage. I love how people on here think they know it all and know the market in my area (of which they have no clue) better than I do.

I bought this house cheaply as it needed a lot of renovation. Which I have now done. A few doors down went for 190k without a garden as big and neat as mine and without a new kitchen, modern decor, new carpets etc.

G_M

00ec25 wrote: »

simple, you got your sums correct, but you did the wrong sum

original price 175,000 - original mortgage 166,250 = equity 8,750, ie the original 5% deposit

the "real" sum: equity on sale:
selling price 195,000 (I agree with you, a somewhat unlikely prospect) - o/s mortgage 160,000 (I agree with you, a totally unlikely amount paid off in so short a time) = equity 35,000

I'm glad one of us knows what I did!!


cheers!

Mashy

Have you spoken to a local estate agent? We just sold our house for a lot less than our neighbours with an identical house did in 2016. House prices have come down a bit in the last year.

Also when you say sale price do you mean the actual price it sold or the price it is advertised at? Expect offers around 5-10% less than advertised at.
Also I have found that decor is a matter of taste, so may or may not affect the price. We looked at some houses with new kitchens etc but my first thought was I'd want to replace the kitchen, simply because I didn't like it and was put off. If it's a fairly neutral kitchen it will probably help the value. Unless it's something major like an extension or putting central heating in, I wouldn't have thought it would raise the value by much.

But as you mention I have no idea of your location, I'm not in the property industry so I'm just talking from experience and opinion - best thing is to get an estate agent to value it.
Im our current selling and buying situation we don't have a 10% deposit and all of our deposit to the new place is coming from our equity. We've been told it's not a problem.
Another thing to just double check with porting is that you won't end up with effectively 2 mortgages, and 2 sets of fees when you renew your fixed rate. We are porting, and have been told by our mortgage advisor it won't be a problem, but friends our ours who went directly with a bank now have two mortgages with fixed rates ending a year apart that they can't bundle together.

00ec25

**dancingbutterfly** wrote: »

I have 163k left on my mortgage. I love how people on here think they know it all and know the market in my area (of which they have no clue) better than I do.

I bought this house cheaply as it needed a lot of renovation. Which I have now done. A few doors down went for 190k without a garden as big and neat as mine and without a new kitchen, modern decor, new carpets etc.

I love how original posters on here then drip feed extra info in later posts whilst at the same time criticising the comments of those trying to help using the info originally provided. WE ARE NOT MIND READERS
- you said 160k ish not 163
- you said nothing about comparators
- new kitchens and wall decorations do not add value/recover all costs, they do improve marketability and may recover some costs


Since you picked my post to reply to, ungracious springs to mind.

**dancingbutterfly**

Just thought I would update that we accepted an offer of £195k on our property in August and are due to exchange in next week or so.

No qualms about the short ownership of property, or that is isn't worth the 20k extra than we paid for it. Maybe not an unlikely prospect! Our village is booming. EA said the work we have done and rising prices here added 20k to the value.

Thanks for peoples views. 00ec25, I was not ungracious, miffed you said it was ''a very unlikely prospect'' that we would get 195k for our house. Thank you for your comments.