Equity amount

katie4

Hi we have aip £138,250, £80k equity house purchase £218,250 
mortgage advisor advised keeping £80k equity for house purchase and remaining £11k for solicitors fees/moving costs etc

weve had offer £5k under on our house just want to check if we accept we can take the extra £5k out of the remaining £11k with no issues from our mortgage side of it? Hope this makes sense 

Schwarzwald

To me, it is hard to make sense of these half finished sentences, 

Herzlos

You'll just need to get the numbers to add up at the end.

It might be easier to think of it as 3 transactions:

You sell the existing house and get £80k after clearing the mortgage.

You pay the solicitors.

You buy the new house using a deposit and mortgage for the rest.

If you don't have enough in cash to pay the solicitors/movers etc, then you can take it out of the equity and thus pay less deposit and have to borrow more.

Where does the £11k come in? Are you making £91k on the sale and carving £11k off to leave £80k equity?

Caz3121

katie4 said:

Hi we have aip £138,250, £80k equity house purchase £218,250 
mortgage advisor advised keeping £80k equity for house purchase and remaining £11k for solicitors fees/moving costs etc

have you mixed 'equity' and 'deposit'
It sounds like you planned to have £91k equity and use £80k of it as deposit leaving £11k
If you are now going to have £5k less you will have £86k equity and use £80k of it as a deposit you will now have £6k left

This won't affect the mortgage but will affect the amount you have for solicitors/moving costs etc

katie4

Herzlos said:

You'll just need to get the numbers to add up at the end.

It might be easier to think of it as 3 transactions:

You sell the existing house and get £80k after clearing the mortgage.

You pay the solicitors.

You buy the new house using a deposit and mortgage for the rest.

If you don't have enough in cash to pay the solicitors/movers etc, then you can take it out of the equity and thus pay less deposit and have to borrow more.

Where does the £11k come in? Are you making £91k on the sale and carving £11k off to leave £80k equity?

Yes that’s right sorry I meant we’ll have £87k equity putting £80k deposit down and having £7k left it would have been £91k but they’ve offered 5k less than what we ideally wanted 

Herzlos

As long as the bank will give you the balance then you should be fine. Where are you coming up with the rest of the money for expenses or was the £11k an estimate?

HouseMartin567

katie4 said:

Herzlos said:

You'll just need to get the numbers to add up at the end.

It might be easier to think of it as 3 transactions:

You sell the existing house and get £80k after clearing the mortgage.

You pay the solicitors.

You buy the new house using a deposit and mortgage for the rest.

If you don't have enough in cash to pay the solicitors/movers etc, then you can take it out of the equity and thus pay less deposit and have to borrow more.

Where does the £11k come in? Are you making £91k on the sale and carving £11k off to leave £80k equity?

Yes that’s right sorry I meant we’ll have £87k equity putting £80k deposit down and having £7k left it would have been £91k but they’ve offered 5k less than what we ideally wanted 

What does that £7k need to cover? I’m thinking about solicitor costs, EA fees, stamp duty and removals. And you’ll also want to make sure you have a bit of an emergency fund left.

katie4

HouseMartin567 said:

katie4 said:

Herzlos said:

You'll just need to get the numbers to add up at the end.

It might be easier to think of it as 3 transactions:

You sell the existing house and get £80k after clearing the mortgage.

You pay the solicitors.

You buy the new house using a deposit and mortgage for the rest.

If you don't have enough in cash to pay the solicitors/movers etc, then you can take it out of the equity and thus pay less deposit and have to borrow more.

Where does the £11k come in? Are you making £91k on the sale and carving £11k off to leave £80k equity?

Yes that’s right sorry I meant we’ll have £87k equity putting £80k deposit down and having £7k left it would have been £91k but they’ve offered 5k less than what we ideally wanted 

What does that £7k need to cover? I’m thinking about solicitor costs, EA fees, stamp duty and removals. And you’ll also want to make sure you have a bit of an emergency fund left.

It needs to cover estate agent and solicitor fees. There is no stamp duty