Selling House Over Market Value

time-4-a-new-start

Hi
I'm looking at selling my house as part of a swap for a new house. Sounds simple, but let me give some details:

1. My current house is in negative equity
2. I am buying a new build house and as part of the deal the seller is buying my house.  They wont be using a mortgage to buy it, rather take my house as equity off the purchase price 
3. The proposal is for me to buy the new house at the sale price and get a new mortgage for that value (already an offer in place)
4. The seller will buy my house for the current mortgage value (approx £40k over the market value). As above, they wont be using a mortgage to buy it, rather buy using the funds from the sale of their house.

My main question is can you sell a house for a price above the market value? As there isn't a mortgage I think you can sell for whatever price a buyer is willing to pay? Similar to you selling a house under value or for £1 for example. 

Selling my house at the mortgage value allows me to move away from the negative equity on it.  We did look at porting the mortgage and keeping my house, but neither options were viable. The proposed offer allows us to move on and the seller to sell a house that has been on the market a while.

Would really value you input and advice on this. Thanks 

eddddy

It sounds like you're confusing yourself by over-thinking this.

But the short answer to your question is that you can sell your house for any price you want - as long as you pay off the mortgage on it (using the proceeds of the sale and/or your savings).

But if the plan also involves 'overpaying' for the house you're buying, in order to get a larger mortgage - that won't work. The mortgage lender will want to value the house you're buying.

e.g. Does your plan include something like this:

• You want to buy a house with a 90% mortgage.
• You agree to pay £240k for a house that is only worth £200k - in the hope of getting a mortgage of 90% of £240 = £216k
• i.e. You want a mortgage of £216k on a house that's worth £200k
• (And to 'balance things out' the seller agrees to pay you £40k extra for your house)

• That won't work, because your mortgage lender's valuer will value the house you're buying - determine that it's value is £200k, so the lender will only lend 90% of £200k = £180k  
• And trying to 'trick' a mortgage lender like that is getting a little close to mortgage fraud.

But If the above isn't the case, maybe explain your situation with some actual numbers. Then it might be easier to follow.

time-4-a-new-start

Thanks for the reply. This looks like the thread duplicated. I have added more details on this thread
https://forums.moneysavingexpert.com/discussion/6105133/selling-house-over-market-value#latest

But think you are right. it was/has been all clear in my mind, but had start to self doubt.  I'm not overpaying on the value for the new house, it's been valued on the market and by mortgage company.  I'm selling my own house for the mortgage value, which I have a buyer prepared to do. So there is no trick in the new mortgage, just a 90% LTV that has been approved and verified by the lender