As your family expands or starts to decrease as the children leave their homes as the children leave home it may be time to consider setting up the property and moving on to something different. For many of us, our first home is merely a first purchase before we move on to something bigger and better. The deed for a bigger property is acutely felt by many families and finding a new place that is the right one is very important. Luckily the Estate Agents Gloucester based Murdock and Wasley are Available to find that dream new home.
After you have found a property the next thing to do is place yours on the market. If you are determined to sell then it might be an idea to do this first via the estate agent above. If the property is more expensive than your current house you may need to borrow additional funds on top of your existing mortgage. Some mortgage lenders will allow you to keep your existing rate, this could be useful if you have not come to the end of a fixed period as there may be early repayment charges.
Solicitors will still be required to complete the move and for the transfer of money between buyer and seller. As with your first purchase you would also need to pay for a valuation of the property that you are looking to buy. At least this time you may not have to try and raise a deposit.
How a deed of trust affects the sale
Many buyers rely on a gifted deposit from close family to get onto the property ladder. Lenders usually insist that the money really is a gift rather than a loan, so those giving it sign a legal agreement saying they will not ask for it back.
That can leave an imbalance when a couple buys together and one side has contributed far more than the other. A deed of trust deals with this. It sets out how the proceeds will be divided when the property is sold, so that the deposit is repaid in full to whoever provided it, or a larger share goes to the partner whose family gave the most.
This matters most if a relationship breaks down and the home has to be sold because one person cannot afford the mortgage alone. Checking whether a deed of trust exists, and what it says, should be an early step before putting the property on the market.
Selling a home with a Help to Buy loan
If you bought your home with a Help to Buy equity loan, selling involves an extra step. If the loan has been repaid in full, the sale works like any other. If there is a balance outstanding, you must repay it as part of the sale.
The loan was available only on new builds and is an equity loan, so the amount you owe is linked to your home’s value rather than the sum you borrowed. If the property has gone up in value, you will repay more, and if it has fallen, you will repay less.
Before selling, contact the scheme’s administrator to find out how much you owe. This is based on a current valuation by a chartered surveyor, which you pay for. The valuation is only valid for three months, so it is best arranged once you have accepted an offer or are close to selling. You then repay the loan in full, including any interest and fees. A specialist property lawyer can help if the process seems complicated.
