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Taking equity out when moving
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brendanb581
Posts: 144 Forumite


This might be a stupid question but just wanted to clarify...
We are looking at selling our property for £260,000. We currently owe £130,000 on the mortgage so should have £130,000 equity.
THe house we are looking at buying is about £360,000.
Can we choose to put only £90,000 of the equity into the deposit for the new hous? Or do we have to put all the proceeds of the sale into the new house because it costs more?
The idea is to keep £30-40,000 aside for the future (possible extension / improvements etc)
Just wanted clarification...Thanks!
We are looking at selling our property for £260,000. We currently owe £130,000 on the mortgage so should have £130,000 equity.
THe house we are looking at buying is about £360,000.
Can we choose to put only £90,000 of the equity into the deposit for the new hous? Or do we have to put all the proceeds of the sale into the new house because it costs more?
The idea is to keep £30-40,000 aside for the future (possible extension / improvements etc)
Just wanted clarification...Thanks!
0
Comments
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You can choose, as long as your within the lenders minimum LTV.
Dont forget it could affect the interest rates on the mortgage though.1 -
brendanb581 said:This might be a stupid question but just wanted to clarify...
We are looking at selling our property for £260,000. We currently owe £130,000 on the mortgage so should have £130,000 equity.
THe house we are looking at buying is about £360,000.
Can we choose to put only £90,000 of the equity into the deposit for the new hous? Or do we have to put all the proceeds of the sale into the new house because it costs more?
The idea is to keep £30-40,000 aside for the future (possible extension / improvements etc)
Just wanted clarification...Thanks!
Just bear in mind your moving costs though. If you have £130k equity and plan on using £90k of that you'll be pushing it to have £30k left in the bank at the end by the time you've paid Stamp Duty, Solicitors fees, EA costs, possible early repayment charges (?), removals etc.
I worked out recently that our recent move cost us nearly £18k not counting the actual cost of the house/deposit. Albeit that included some new furniture/white goods purchases etc. Just over half of that was in stamp duty alone2 -
Estate agents round here include a stamp duty calculation in their listings. It's quite depressing.No reliance should be placed on the above! Absolutely none, do you hear?0
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Consider the LTVOn a £360,000 property £90,000 is a 25% deposit so 75%LTV.
You could also look at Offset mortgages where you put all your spare money and regular savings into the Offset account ( extension fund )
Great way to build up savings to pay for any work in stages0
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