Mortgage free move to cheaper property. Process?

mwhile89

Hi, thinking of moving but it has been over 30 years since we have done this and back then, we had a mortgage. This time, we are lucky to be mortgage free and have been for some time. Current property worth approx £250K and looking at similar type of property further North in the UK which would be around £220K. In my simple head, I'm thinking the possible £30K 'saving' would cover moving costs etc. but we cannot get our heads around, nor find the answer via online searches, as to how the process and mechanics work around payment upon exchange of keys. Guessing purchase money for this property would not be released until exchange of keys, so how does new property get paid off at time of move? We do have £30K+ in savings if the moving costs needed paying up front, knowing that would be replaced upon completion but obviously not the full purchase price of the property we'd be moving to. Don't want to get a mortgage but is that the only way of doing this and making sure it is one that has no penalties for paying it off immediately after move with proceeds from house sale? Thanks in advance and hope enough detail above to get some ideas.

uralmaid

We have twice previously moved wihout having a mortgage. If the property you are selling is more than the property you are purchasing, then upon completion your solicitor will simply deposit the amount of money in your bank account after deducting their costs , stamp duty etc and estate agents fees which they will pay . The purchase money for your property will be sent by bank transfer from your purchasers solicitors to your solicitor who will in turn transfer the funds required to purchase your new property to the sellers solicitors. 

Albermarle

Guessing purchase money for this property would not be released until exchange of keys, so how does new property get paid off at time of move?

On completion day, money from your sale will be used to purchase the property you are buying. It all happens pretty quickly between the solicitors and by late afternoon ( at the latest) it should all be sorted.

Assuming there is definitely enough surplus between sales and purchase price, your solicitor will take all costs out of that.

jonnydeppiwish!

Put your house up for sale.
When under offer, offer on one you like.
Contract a solicitor (local rather than big online companies- tend to be better).
They sort everything out.
Budget £3-4k for costs, £1.5k for removals and however much stamp duty.
Once you’ve completed (solicitors do all of this), they’ll send you by bank transfer, any outstanding monies owed.
All done 👍 

twoLou

I have just moved the same as you wish to - no mortgage sale to no mortgage purchase.

others have explained your solicitor will pay for your new property along with the stamp duty, their own fees and the estate agents fees from your sale.

What you would need to pay for in the beginning is some money in advance to your solicitor to be held on account so they may pay for the searches etc mine was about £500, it saves them keep asking you to transfer money.

And your removal costs right at the end of the process.

The very best of luck with everything 

youth_leader

Not everybody has one, but if you choose to have a survey, you need to allow money for that.  I paid £900 for a RCIS 3 survey on a bed bungalow in Northumberland.