Step 1 Figure out your finances:

Interestingly the biggest hurdle most people face when selling their house, is they have forgotten to work out all their finances.

Invariably you will probably be buying another property. But:

· what price is that new home?

· What mortgage can you get ?

· What are all the costs involved?

· What does that mean in terms of selling price that you need to achieve for your property?

· Is that selling price realistic ?

You need to find out how big your outstanding mortgage is, and if there are any early redemption penalties.

You need to get a rough idea of how much your house is worth, then you can calculate how much money you will be left with after you have paid off the mortgage.

If you are also buying a new home, you should obviously consider what size mortgage you will need for that. You should get an idea from mortgage lenders how much they would be willing to offer you., or better still speak to a whole of market mortgage broker, who can shop around on your behalf to get you the best deal.

At the early stages, the figures will be approximate only – you don’t actually know how much you will sell your house for and you will only get a precise mortgage redemption (amount outstanding) figure for your mortgage once you have an agreed completion date when you have exchange contracts

Here’s a quick checklist, jot down your own figures in here

SELLING FINANCES

Considerations

Approx. Values ?

(A) Your Property Value ?

(B) Then deduct costs below

Current Mortgage balance

Early redemption penalties ?

Estate agents charges

Solicitors , selling

Removals costs

Other?

Other?

Total ALL Costs

+ Savings / cash available

( D ) Deposit / funds available for purchase

BUYING COSTS

Considerations

Approx. Values ?

New Property Value

Your Deposit / savings

New Mortgage costs & charges

Stamp duty

Solicitors , buying Search fee’s

Removals costs

Other?

BALANCE

( Property Value – minus costs )

Contingency / Surplus

= New Mortgage amount

I would recommend that you build in a small contingency / surplus as well, as often in moving into a new property there are other miscellaneous costs that you may need to cover. E.g.;

· New curtains

· New kitchen equipment e.g. if you left your integrated fridge freezer in your previous property

· Phone and broadband connections

· TV aerials

· etc

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