Paying moving costs from equity
Discussion
Long story short, we rushed into our first house purchase a couple of years and are not entirely satisfied.
I'm looking into the possibility of trying to take a step up on the ladder within 1-2 years using equity, however I'm not entirely clear on exactly what can and cannot be paid from equity when moving house.
Lets say current house value £270k, o/s mortgage £220k. So £50k equity. SDLT, estate agents fees, legal fees etc. can all be paid from that equity on completion, correct?
So if new property is £300k, say £20k fees, leaves us with £30k 'cash' on completion - to be used as deposit for new property.
Is it really that simple? Feels like it can't be!
Also incidentally, does it work broadly the same with p/x on new properties? Is the principle the same or is that equity completely inaccessible to us? I.e. if we bought at £300k from a dev, and agreed a px value of £270k (i know that's unlikely if MV was £270k!), that £50k equity is our deposit. Would we still have the option of 'taking' £20k of that on completion to pay fees from and then using the remaining £30k as deposit? Or in the case do the developers stipulate that the entirety of the p/x value after mortgage discharge is used as deposit?
I guess they don't care as they get their money either way?
I'm looking into the possibility of trying to take a step up on the ladder within 1-2 years using equity, however I'm not entirely clear on exactly what can and cannot be paid from equity when moving house.
Lets say current house value £270k, o/s mortgage £220k. So £50k equity. SDLT, estate agents fees, legal fees etc. can all be paid from that equity on completion, correct?
So if new property is £300k, say £20k fees, leaves us with £30k 'cash' on completion - to be used as deposit for new property.
Is it really that simple? Feels like it can't be!
Also incidentally, does it work broadly the same with p/x on new properties? Is the principle the same or is that equity completely inaccessible to us? I.e. if we bought at £300k from a dev, and agreed a px value of £270k (i know that's unlikely if MV was £270k!), that £50k equity is our deposit. Would we still have the option of 'taking' £20k of that on completion to pay fees from and then using the remaining £30k as deposit? Or in the case do the developers stipulate that the entirety of the p/x value after mortgage discharge is used as deposit?
I guess they don't care as they get their money either way?
BRISTOL86 said:
Long story short, we rushed into our first house purchase a couple of years and are not entirely satisfied.
I'm looking into the possibility of trying to take a step up on the ladder within 1-2 years using equity, however I'm not entirely clear on exactly what can and cannot be paid from equity when moving house.
Lets say current house value £270k, o/s mortgage £220k. So £50k equity. SDLT, estate agents fees, legal fees etc. can all be paid from that equity on completion, correct?
So if new property is £300k, say £20k fees, leaves us with £30k 'cash' on completion - to be used as deposit for new property.
Is it really that simple? Feels like it can't be!
Also incidentally, does it work broadly the same with p/x on new properties? Is the principle the same or is that equity completely inaccessible to us? I.e. if we bought at £300k from a dev, and agreed a px value of £270k (i know that's unlikely if MV was £270k!), that £50k equity is our deposit. Would we still have the option of 'taking' £20k of that on completion to pay fees from and then using the remaining £30k as deposit? Or in the case do the developers stipulate that the entirety of the p/x value after mortgage discharge is used as deposit?
I guess they don't care as they get their money either way?
20k fees? On what? I'm looking into the possibility of trying to take a step up on the ladder within 1-2 years using equity, however I'm not entirely clear on exactly what can and cannot be paid from equity when moving house.
Lets say current house value £270k, o/s mortgage £220k. So £50k equity. SDLT, estate agents fees, legal fees etc. can all be paid from that equity on completion, correct?
So if new property is £300k, say £20k fees, leaves us with £30k 'cash' on completion - to be used as deposit for new property.
Is it really that simple? Feels like it can't be!
Also incidentally, does it work broadly the same with p/x on new properties? Is the principle the same or is that equity completely inaccessible to us? I.e. if we bought at £300k from a dev, and agreed a px value of £270k (i know that's unlikely if MV was £270k!), that £50k equity is our deposit. Would we still have the option of 'taking' £20k of that on completion to pay fees from and then using the remaining £30k as deposit? Or in the case do the developers stipulate that the entirety of the p/x value after mortgage discharge is used as deposit?
I guess they don't care as they get their money either way?
S10GTA said:
It will be closer to 5k than 20k
Stamp duty alone would be 5k. legal maybe 1.5k? No idea what estate agent fees are but guessing £2k? thats £10k without thinking too hard! Then removal costs, any mortgage fees, all other sundry costs of moving. Got to be looking at the best part of £15k surelyWe are currently going through what you are proposing to do so the answer is 'yes'.
You won't be far off with your moving estimates either.
You will need about a grand or two upfront though for incidentals like EPCs, removal company, search fees, etc.
Stamp, legal and estate agent fees (the biggies) are payable upon completion.
You won't be far off with your moving estimates either.
You will need about a grand or two upfront though for incidentals like EPCs, removal company, search fees, etc.
Stamp, legal and estate agent fees (the biggies) are payable upon completion.
valiant said:
We are currently going through what you are proposing to do so the answer is 'yes'.
You won't be far off with your moving estimates either.
You will need about a grand or two upfront though for incidentals like EPCs, removal company, search fees, etc.
Stamp, legal and estate agent fees (the biggies) are payable upon completion.
Thanks, pretty much as I thought!You won't be far off with your moving estimates either.
You will need about a grand or two upfront though for incidentals like EPCs, removal company, search fees, etc.
Stamp, legal and estate agent fees (the biggies) are payable upon completion.
In reality we'll probably stay put another couple of years and get a bit more equity in the house. Rome wasn't built in a day and all that, and we're still 95% happy with where we are
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