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Deposit question.

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  • Deposit question.

    I have a question which I hope some kind soul can help me with.

    My current property is worth approx £150000 and the remaining mortgage is around £120000.

    I am looking to buy a new build with my partner in the near future. What I would like to know is am I able to use the £30000 or so equity in my current house as deposit for the new home or do I need the £30000 as cold hard cash?

    I'm confused!

  • #2
    Re: Deposit question.

    I assume you are going to sell your present house and buy this newbuild.

    If that is the case usually what happens is your buyer supplies a deposit at exchange of contracts and that is passed on up to your seller. If there is a big difference between the amount provided by your buyer and 10% of the price on your purchase the seller may want you to make up some or all of the difference. These amounts are negotiable and very often the person in the middle doesn't have to contribute anything..

    There are thousands of people in your position so solicitors are very used to dealing with it.

    The money in your present property is only released when the transaction is completed and then goes towards the price on the purchase.
    RICHARD WEBSTERwww.rwco.co.uk
    As a conveyancing solicitor I want to be helpful (England/Wales only) but can't accept liability for this.