Part exchange

[Icelollycraving]

Has anyone experience of part exchange on a new build?

Just moved into our new build part exchange property on Friday, what would you like to know?

This is the second time we've used part exchange and I'd totally recommend it as a stress free move, the thing is just being realistic about how much you could actually sell your house for, not how much the estate agents would market it at. We saw how little interest there was in our house from vendors when the builders put it on the Market, they are now selling it at less than they paid us for it so considering we also got 5% cashback and didn't pay estate agent fees I feel we got a really good deal.

That does sound good! We have found a property & are waiting for the valuations. There won't be any equity really & so just need to cover the mortgage outstanding.
The property will be ready to move into in August/September so the sales lady did say that may go in our favour.
What sort of % under the value were you offered if you don't mind me asking.

Got 3 estate agents coming to value for the px. Wondering what the offer will be. Not sure how they work out the offer. They did ask when we viewed the house what we need it to be.

We've just started the process. Their offer came back £5000 lower than the private valuations we got. We went with it as we managed to get a really good deal on our new house (last house in development etc). We move on the 29th so 4weeks after signing the paperwork!

Wow that's quick! I took out an interest only mortgage at the peak for 110%. I just need to break even.
In our favour,we'd be able to move quickly & would not be a problem if the move in date got moved.

We did this 4 and a half years ago now.

Our house had been on the market for ages but no-one was interested, had no offers etc. It got valued by the house builder at about 90% of the price we had it on for which was a big hit but they took £15,000 off the price of the new house to make up for it. The main problem with this is that although we got the new house cheaper, we were left with less equity from our old house to put down as a deposit to get the mortgage (iyswim?!).

We were very fortunate that family agreed to lend us the shortfall for 6 months but this is a factor to take into account. How much LTV mortgage will you be getting? Our new house was worth more than the old house and we got a 90% mortgage (the maximum LTV they were doing at the time iirc) so had to provide the other 10% as a cash deposit. This part of it works the same whether you px or not.

We were very lucky as we moved just as the recession was hitting so the house builders had a hard time selling our old house, it took them about 3 months and they sold it for a few grand less than they bought it from us! We could still be stuck in that house now if it wasn't for doing the px. As it was, from the day we went to visit the site office to enquire to the day we moved in to our new house was 5 and a half weeks!

The house we are interested in is almost finished. It has an upgraded kitchen already in the price. Wonder if there is any room for negotiation.

Ours was not too far off being finished, we just about managed to get in there before the kitchen and bathrooms were done so we got to choose what we wanted which was great.

I reckon there is always room for negotiation, especially if the house is nearly finished cos they run the risk of having a complete house sitting empty otherwise. After they had valued our old house they rang up to tell us the offer and gave us the £15k off in the same sentence so wait until you have that call and you will have a much better idea of where you stand and how much further negotiating you can do.

Sorry to hear that sparkles. Tbh I have a feeling we won't get a great offer. Flats here are slow to sell & I need what I borrowed back.
If the offer isn't great then we may have a rethink. The development is opening soon (we got in early) & the plot we want is a good one,I don't think it'll hang around. I don't think the developer will worry if don't take it,someone else will.

Icelollycraving, when you say break even, do you mean you want them to offer the peak price + 10% (sorry if I've misunderstood)?

No,that'd be a bit hopeful! I just need enough to pay the mortgage on this off & start afresh.

But isn't it an IO mortgage - so wouldn't you need that much to pay it off?

So similar position then. I took out the mortgage before meeting dh & just kept to it & never really thought beyond it being paid Everyone said just do an interest only,you'll never lose on a flat in London!. Bit dim perhaps. If the offer is pants then we can rethink. Dh has a nest egg & mortgage on new place would be in both names so will only do it if this is sold/px. We aren't expecting to make a profit out of it once all paid off.

Alabama,I meant the peak of the io mortgages & 110% etc not necessarily the peak price iykwim.

Ok,offer came back for enough. However,dh now thinks we are over extending ourselves. There is a (much) smaller property on the new build. The living space is tiny. Dh thinks to get out of where we are & take the part ex. My thinking is the space isn't liveable long term. Confused :(

You need living space

We saw another house that had just become available too. We put in a cheeky offer with a list of requests on the deal. Think if the sales lady could have told us to fuck off,she would have! Waiting to see the outcome. We've found a few houses available that are the show homes etc so should hopefully want to do a deal although I may have pushed my luck