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HTB - Part Ex
grahamando
Posts: 6 Forumite
Hi,
I’m after some advice please as I can’t find a clear answer. My current property has a HTB equity loan on it and I want to part exchange it for a new build (not taking out another HTB). Therefore the loan would be redeemed in full upon selling to the developer (based on the valuation).
I’m after some advice please as I can’t find a clear answer. My current property has a HTB equity loan on it and I want to part exchange it for a new build (not taking out another HTB). Therefore the loan would be redeemed in full upon selling to the developer (based on the valuation).
Does anybody know if this would cause any issues? I can’t see anything in the T&C of the HTB loans other than you can’t part exchange with a new purchase with HTB.
Hope that makes sense, any comments welcome thanks in advance.
Hope that makes sense, any comments welcome thanks in advance.
Thanks
Graham
Graham
0
Comments
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You can't use PX for a new HTB Equity Loan purchase. Best you will get is an assisted-sale.
If your new purchase is non-HTB PX is possible if the builder agrees.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Won’t be a HTB purchase. Will be mortgage and cash from sale deposit0
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Sorry, was editing to cover both scenarios for future readers.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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Thank you. I thought as much. Main thing is the HTB is still redeemed in full so shouldn’t be an issue0
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The HTB will be repaid as part of the transaction. Your new purchase being non HTB is nothing to do with HTB. As long as they get the proper 20% - not a artificially reduced price for part exchange I cant see it being a problem0
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HTB redemption is based on the higher of the surveyor's value and the 'sale' price.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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