Please can someone talk me through part exchanging house for new build ☺️

[sopeas]

Hello all and happy new year!

DP and I have lived in our first house for around 18 months now and I’ve never ever been happy or felt settled here. I’ve recently broached the subject of new build and part exchange with him and he’s happy for us to look into it but we don’t really understand much about it despite reading on the developers website. Could someone who maybe has experience here give me some idea of how it would work. I understand the developers send local EAs out to value the current property but then I’m a bit baffled from there - so they offer a sum would we then take out a mortgage of the difference between the new build and the old house or port the current mortgage or what? 😵‍💫 This is where I’m confused, so sorry if this sounds stupid or it’s glaringly obvious x

A quick comment, that you can end up paying more for a new build and getting less for your property. Worth getting independent valuations from someone not recommended by the developers.

This might help
https://www.isonharrison.co.uk/blog/how-does-part-exchange-work-on-a-property/

Dont over complicate it.

Your house has a mortgage of X
Your house ends up with a value agreed between you and the developer based on the EA suggestion of Y. Remember this is an agreed figure so if you disagree with it then thats up to you to argue the case.
The difference is your equity/deposit/negative equity.
Then you go and see if you can get a mortgage for the amount to buy the new house based on your deposit or not. You havent detailed your finances other than to say you bought 18months ago.

I've never done it, but have considered it.

I expect the builder to offer market value based on one or two EA valuations. They will expect you to buy one of their properties valued at (say) 25% more than the PE value agreed on your home. So you need to have that extra cash or mortgage facility available.

Beware, you will be overpaying on the new build since it comes with a 'shiny new' premium. You should avoid any estate that is not adopted by the local council. And you should avoid any estate that is trying to charge annual estate charges. See fleecehold.

Good luck.