Part exchange

[Aimzxo]

Hi all

Has anyone ever part exchanged their house for a new build?
Any pros and cons?

I'm waiting for a call back from a company but thought I'd ask opinions from people who have done this before I speak to them

I'm presuming this is how it works, our house is valued at 220k, so hypothetically if they offer us 200k and we choose a house for 300k then we only need a mortgage for 100k?

Do we pay solicitors fees or do they? Reading conflicting information so I'm wondering if different companies do it differently

Thankyou :)

Are you mortgage free on your current house? If not your current mortgage amount would determine how much mortgage you’d need on your new one.

Also are they paying stamp duty for you? That varies between companies so one to check.

MY understanding is that they'll get a local EA (or 3?) to value your home. I don't know that they'll not offer market value but be aware that they'll probably expect it to be priced to sell in the current market - not at last year's peak.

Then divide that estimate by 0.75 and that is the minimum value of the home you must buy. For example, your home is valued at £300K. £300K/0.75 = £400K. So you'll be buying as home priced at least £400K or more. How you make up the difference (£100K in this case) is up to you - mortgage, cash, or half-n-half.

I've never done PE but this was what I was led to believe when I enquired for myself.

Don't know if this will be of any use but we did part ex on an ex show home nearly 30 years ago when the market for sellers wasn't good. (Our lovely house had been on the market for 9 months with only 2 viewings and neither serious.)

An estate agent just did a drive by - never actually came into the house - and we were offered slightly more than we had previously had the house on the market for.

Mortgage arrangements exactly as if we were buying from a private seller.
Same with solicitors, searches etc.

Everything went through incredibly easily and we moved in 6 weeks after initial viewing. Easiest move ever!

We are still here and have had many alterations over the years. It is definitely our "Forever home."

Are you mortgage free? If yes it would work like that, otherwise you would just be using the equity that has built up since buying as deposit

We part-exed our previous home to move into current new build. We are currently in the process of trying to move and in a ridiculously complex chain. Based on this experience I would thoroughly recommend the part ex! I think each developer is different regards who pays legals etc. The way it worked with us is that the builder sent three local agents around who prepared a report for the builder and the builder came up with an average price based on the reports. We actually got a fair price and were happy!

Ahh okay perfect, thanks all you've been very helpful! Xx