I really need help with my calculations please!

[Chocachocalatte]

Thankyou.

I struggle.

My property is on the market at £700k.

A property I am interested in is for sale at £650k. New build. Ready to move into.

The developer has said they will offer me 10-12% below market value as a part-exchange & have asked what I need to get for mine to make it work….or take £20k off as stamp duty contribution.

Haven’t moved in years - assuming legal fees circa £4k, mortgage port fees to be considered, stamp duty at £20-22.5k, removal fees £5k.

I can either do a PX or sell via an agent and pay selling/stamp duty fees.

Been asked what figure I need from the developer.

I’m struggling! Am I over-complicating it??

Not what you've asked, but I would double check they will take your more expensive property as a part ex. Usually the property you are selling needs to be worth significantly less than the one you are buying.

If they give you 10% under - you would sell your house for 630.
Can you make up the 20k more our new house will cost, plus the expenses outlined?
Remember if you don't part ex, there are estate agent fees to pay too

Slightly.

You’ll have the legal, mortgage and removal costs however the deal is done.

Are you likely to need to drop 10-12% of asking price to get a reasonably quick sale? Would imagine nothing meaningful
will happen now before the new year so assuming you’d accept £630k in the new year, you need to consider how you fund the extra £20k, which is basically what they are offering to give you.

You could hold out for longer for a better offer, but risk losing the new house?

Looks like £630k is what they are offering you to part-ex. You could maybe try and squeeze another £5k out of them but it depends how much/how quickly you want to move.

Thankyou both.

To answer questions:

@DoublePeonies Yep, the developer has said they will take mine as P/X. I could eek out a bit more in my sale (if I find a buyer) as there are extras sell on, yep.

@ThatIsNotMyNameSoWhyAreYouCallingMeThat I think, yes, a 5% price drop would get more interest in my place but then I have the fear of what the survey will bring up. Could lose the buyer or have to discount further.

Personally I would try a like for like situation first - you sell at £630k and buy at £630k

Can I please ask if there are any estate management fees with the new build house?

It won’t affect your numbers for moving but your ongoing costs and it is something to be considered.

@Nic834 Every development I have looked at within a 20 mile radius (regardless of developer) seems to have these new ‘management’ fees attached, unfortunately. I have joined various FB groups linked to the builders and seemingly, there is no ceiling on the fee or rise in fee annually.

Gosh wow. Well it sounds like if one wants a new build that’s a cost that comes with it.

On the other hand we’ve just bought a doer-upper and that is far more cost when we keep finding things that need sorting out and spending money on.