A question about new house!

[gingajewel]

Can anyone just put my mind at rest, I think I have worked this out right but please can I just double check, when you sell your house any equity you make minus the deposit for your new house just gets put into your bank?
So say you have 60k and use 30k for your deposit and moving costs then that will leave you with 30k just in your bank account?

Your solicitor might take their fees and any EA fees out of it, plus stamp duty, if these are not being paid some other way.

It will depend on how much your new mortgage is for surely? Don’t you want it all to go on the new house? Otherwise you’re back at square one again and you’ll never pay it off.

Yeh I’ve included my solicitors fees and we won’t have stamp duty as we are moving in the next few weeks, I want this money to pay off debt which is why I’m moving house, I don’t want to put it all into my new house (those figures weren’t real figures but yes I’m only putting 10% deposit down on my new house)

@GeorgieTheGorgeousGoat sorry I dont get what you mean about never pay it off, my new mortgage is over 15 years so will surely be paid off then?

When you sell, you get the proceeds less fees (estate agent, solicitor). The buyers solicitor pays it from their escrow account (which is a heavily protected special bank account).

When you buy, you pay the full price, plus stamp duty. The bank pays your solicitor (via an escrow account) the amount they're lending you (ie the mortgage), and you pay the rest into the same account. then your solicitor pays this into the sellers’ solicitors escrow account.

Your solicitor will explain the mechanism to you if you ask. Even if you don’t want to tell her why you’re asking....

If you’re worried that your creditors will get their hands on your deposit amount, then this shouldn’t be possible. Except that you’ll be in breach of your mortgage conditions, which is worrisome.

No im not worried at all that my creditors will get my hands on the deposit, I have enough to pay them off plus pay off my debt, I was just wondering if it is as simple as the money that is mine from the house that isn’t going into my new house will be deposited into my bank so I can pay my debts off?

Also I have no stamp duty as I’m moving in the next few weeks.

Yep, it is as simple as that!

Correct. When they receive the monies from your sale they will pay off the mortgage, and as you say you will have 60k left.
They will then send the new mortgage money and your deposit (which you say is 30k) to the vendors solicitors. They will them pay themselfs and the estate agent and whatever money is left in your account will be sent to you.
You say you are paying off debt? Is any of this part of the mortgage offer? If so the solicitor may need to pay that for you (from your funds). (Or the offer might just say ‘we expect to pay off x loan’ of which the trust to have it paid off is via you, rather than the solicitor.

@Saz12 Thankyou! I keep thinking it is but don’t know if I have missed something obvious I should be thinking about! I’ve only ever bought before never sold and I hate not knowing how processes work!

@Dee1975 Thankyou! No none of it is conditional to be paid off it’s just something that I want to do and one of the main reasons for buying a new house! I just keep worrying something is going to go wrong!!

It’s a stressful time. Try not to worry too much. But yes - the money left over is all yours!!

@Dee1975 Thankyou, appreciate it