We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Newbie questions regarding buying/selling at the same time, and using equity as a deposit
thermal2844
Posts: 118 Forumite
Hello all,
Current job situation has been made known to be uncertain as of Spring 2021. I have, in the meantime, received a job offer, however it is in London and I am currently in the North. I haven't accepted the offer yet. I would not be expected to need to be in the office until beginning of 2021 and can work remotely until then. We have a house with a mortgage and would be looking to buy a home somewhere commutable down south. We can afford the mortgage on a more expensive house, but don't have anywhere near the 15% deposit in cash. As this current house is our first home and we've never been in the situation of buying and selling at the same time, forgive if this is a basic and stupid question, but can we use the equity we would get selling this house as a kind of 'theoretical' deposit, without having the actual cash in hand? A conservative estimate would be equity of around £80k, deposit on a new home would be around £60k. Is this doable, or would we need to sell this place first and rent somewhere down south before moving on to buying another home? I prefer not to spend money on rent, in addition we have dogs which makes it hard to find somewhere (but not impossible), but I understand it would be easier to find a home while renting, than trying to distance buy.
Any advice appreciated, thank you.
Current job situation has been made known to be uncertain as of Spring 2021. I have, in the meantime, received a job offer, however it is in London and I am currently in the North. I haven't accepted the offer yet. I would not be expected to need to be in the office until beginning of 2021 and can work remotely until then. We have a house with a mortgage and would be looking to buy a home somewhere commutable down south. We can afford the mortgage on a more expensive house, but don't have anywhere near the 15% deposit in cash. As this current house is our first home and we've never been in the situation of buying and selling at the same time, forgive if this is a basic and stupid question, but can we use the equity we would get selling this house as a kind of 'theoretical' deposit, without having the actual cash in hand? A conservative estimate would be equity of around £80k, deposit on a new home would be around £60k. Is this doable, or would we need to sell this place first and rent somewhere down south before moving on to buying another home? I prefer not to spend money on rent, in addition we have dogs which makes it hard to find somewhere (but not impossible), but I understand it would be easier to find a home while renting, than trying to distance buy.
Any advice appreciated, thank you.
0
Comments
-
Yes the equity in your current home will be the deposit on your new home.1
-
Thank you very much @RelievedSheff1
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.6K Banking & Borrowing
- 254.5K Reduce Debt & Boost Income
- 455.5K Spending & Discounts
- 247.5K Work, Benefits & Business
- 604.4K Mortgages, Homes & Bills
- 178.6K Life & Family
- 261.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards