Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • lauraalice
    • By lauraalice 11th Jan 19, 10:37 AM
    • 2Posts
    • 0Thanks
    lauraalice
    Part-exchange house
    • #1
    • 11th Jan 19, 10:37 AM
    Part-exchange house 11th Jan 19 at 10:37 AM
    My boyfriend and I are looking to buy a new house.

    He already has a house which is roughly worth 175,000, with about 100k left on the mortgage, plus it was bought with help to buy so they would be owed 20%.

    I also have a property, worth about 75,000 with 60,000 left on the mortgage and also bought with help to buy so owe 20%.

    How would this work with part-exchange? What happens with the help to buy debt, what happens with the mortgages? Essentially, if we were able to trade both properties in on help to buy, how does this work financially and how much would this count towards the new house? Really don't understand the ins and outs of how this works, so no idea what value of property we can start looking at.

    Thanks in advance!
Page 1
    • xpc
    • By xpc 11th Jan 19, 11:12 AM
    • 49 Posts
    • 33 Thanks
    xpc
    • #2
    • 11th Jan 19, 11:12 AM
    • #2
    • 11th Jan 19, 11:12 AM
    By part-exchange, do you mean you are looking to purchase a new build property and the developer offers a part-exchange scheme, or just the usual chain of selling and buying?

    If an offer from a developer then you will more than likely get less than market value, and would need to discuss with them what the likely sale prices would be. You could then work out what value of equity you would get after the help to buy loans have been repaid, minus fees and any other costs.

    If you just mean as part of the usual process of selling and buying then you will have to either go off the valuation of estate agents or recent sold prices of similar properties, and then take a little off just in case. Again, take off fees and charges. If going this route then you will have the purchase dependent on the sale of 2 properties which could complicate the process, or cause problems if one buyer pulls out.

    Either way, I believe the help to buy loan people will have to agree the sale price to ensure they get what they believe is a reasonable value. Though I'm not sure how this works.
    • lauraalice
    • By lauraalice 11th Jan 19, 11:28 AM
    • 2 Posts
    • 0 Thanks
    lauraalice
    • #3
    • 11th Jan 19, 11:28 AM
    • #3
    • 11th Jan 19, 11:28 AM
    I mean to part-exchange the properties through a part-exchange scheme with a developer.

    I know we'll not get the market value price but we are struggling to keep funding two properties at the same time and ideally just want this process to be done as quickly as possible rather than going through selling two properties and holding out for a certain price.
    • davidmcn
    • By davidmcn 11th Jan 19, 11:47 AM
    • 11,177 Posts
    • 12,374 Thanks
    davidmcn
    • #4
    • 11th Jan 19, 11:47 AM
    • #4
    • 11th Jan 19, 11:47 AM
    Have you found any developers offering to take two properties rather than just one? I wouldn't have thought it likely that they'd want to incur double the overheads.
    • Elliott.T123
    • By Elliott.T123 11th Jan 19, 12:04 PM
    • 14 Posts
    • 17 Thanks
    Elliott.T123
    • #5
    • 11th Jan 19, 12:04 PM
    • #5
    • 11th Jan 19, 12:04 PM
    Why don't you sell one of the places asap and both move into the other. You will get a far better price on it selling that way.


    You then have the option of either selling the second and entering a chain or if you are really determined part-x that one.
    • ceh209
    • By ceh209 11th Jan 19, 1:57 PM
    • 784 Posts
    • 517 Thanks
    ceh209
    • #6
    • 11th Jan 19, 1:57 PM
    • #6
    • 11th Jan 19, 1:57 PM
    Why don't you sell one of the places asap and both move into the other. You will get a far better price on it selling that way.


    You then have the option of either selling the second and entering a chain or if you are really determined part-x that one.
    Originally posted by Elliott.T123
    You could even possibly do a deal with an estate agent and have both on the market, but just proceed with whichever one gets an acceptable offer first?
    Excuse any mis-spelt replies, there's probably a cat sat on the keyboard
    • Dru99
    • By Dru99 11th Jan 19, 4:45 PM
    • 3 Posts
    • 1 Thanks
    Dru99
    • #7
    • 11th Jan 19, 4:45 PM
    • #7
    • 11th Jan 19, 4:45 PM
    A builder is unlikely to take two homes as part-ex. To redeem your HTB loan you should check the T&C but mine stated that the value was the higher of either the sale price or surveyor valuation. Because I paid mine off without selling, the surveyor valuation was used (and he was very amenable to valuing it down!). It is unlikely that a builder will offer the surveyor valuation.
    • Sibz
    • By Sibz 11th Jan 19, 5:20 PM
    • 370 Posts
    • 245 Thanks
    Sibz
    • #8
    • 11th Jan 19, 5:20 PM
    • #8
    • 11th Jan 19, 5:20 PM
    As a previous poster has said - I would check the HTB details on bothe properties carefully - there are often (if not always) costs involved in organising applying for this etc... It may well entail a lot of paperwork... and in turn potentially higher lawyer fees etc...

    I think there are too many variables in HTB schemes Ts & Cs nationwide for anyone to be able to give you any specifics on what yours will be. Have you considered a FA to go through your options?
    • missile
    • By missile 11th Jan 19, 6:04 PM
    • 10,035 Posts
    • 5,103 Thanks
    missile
    • #9
    • 11th Jan 19, 6:04 PM
    • #9
    • 11th Jan 19, 6:04 PM
    I mean to part-exchange the properties through a part-exchange scheme with a developer.

    I know we'll not get the market value price...e.
    Originally posted by lauraalice
    Not always. It rather depends on the developer. A neighbour has received 105% of the valuation for his property.

    Most developers will restrict the part exchange, e.g. 2/3 of the value of the house you buy.
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

616Posts Today

6,005Users online

Martin's Twitter