my flat owes me money, can I take this from my extended mortgage?

jarv81178

Hi,

So I spent £5000 on doing up my flat that I am selling.
I was just wondering, how I would get this back when I sell my flat?!
If I sell for £200k and buy at £300k do I just get a mortgage for £105k and that £5k will be in my bank account? or willI not be able to touch it?!

thanks

K_S

@jarv81178 Crude numbers, but yes in essence you just take out a bigger mortgage on the onward purchase and the balance amount lands in your bank account after costs.

jarv81178

crude numbers? lol

MWT

Crude, in that you are ignoring a lot of other things like solicitors fees, stamp duty etc.

... but in essence whatever is left from your sale after expenses and amount paid towards the next property will be returned to you

Billy_B_North

jarv81178 said:

Hi,

So I spent £5000 on doing up my flat that I am selling.
I was just wondering, how I would get this back when I sell my flat?!
If I sell for £200k and buy at £300k do I just get a mortgage for £105k and that £5k will be in my bank account? or willI not be able to touch it?!

thanks

What do you mean by get it back? You don’t, you’ve spent that money, and it’s gone.

Hopefully it’s allowed you to ask and achieve a higher selling price than if you hadn’t spent it, so you’ll make more from the sale, but that’s not the same as your spent money being returned to you.

If you sell your place for £300k, and your mortgage and other costs add up to £200k then at the end of the process your solicitor sends you £100k, and that’s that, there’s no extra payment of “your” £5k being added.

grumiofoundation

jarv81178 said:

Hi,

So I spent £5000 on doing up my flat that I am selling.
I was just wondering, how I would get this back when I sell my flat?!
If I sell for £200k and buy at £300k do I just get a mortgage for £105k and that £5k will be in my bank account? or willI not be able to touch it?!

thanks

You can apply for as big a mortgage (that you can afford) as you want.

Sell Property A for 200k (assuming after fees etc)

Buy Property B for 300k - you can get a 100k mortgage and use the 200k from property A.

You can get a 200k mortgage and use 100k from property A and get 100k paid into your account.

Under what circumstances would you "not be able to touch it"?

jarv81178 said:

crude numbers? lol

Well they aren't detailed numbers...