If I want to sell my house, how about my outstanding mortgage ?
I am thinking of buying a house, however, I am not sure if I would stay here for good.
Let us say, I bought one house with market value of £100,000, paid £15,000 deposit and get mortgage from the bank for the next 25 years.
If I decide to sell my house after two years, what should I do with my outstanding mortgage. Can I transfer it to buyer? I heard that the estate agency and solicitor will get involved in this matter, what kind of roles do they play?
I will appreciate if anyone can explain to me how it works in details.
Another question just got into my mind as reading your answers.
By the time I sell my property, I do not think I am able to pay off the outstanding mortgage. And the buyer may have to get a mortgage from bank as well.
Does that mean I could not sell my house until I own it completely.
Sorry, I forget to add. The new property I will get will be abroad.
Quoted from twinkle:
"When you sell the property you repay the outstanding mortgage from the proceeds from the sale. For example, you sell your house for £125,000 when you still have a mortgage of £80,000. You repay the oustanding £80,000 to the lender and you keep the remaining £45,000 (from which you pay estate agents and solicitor fees)".
My confusion is that it is unlikely for the buyer to offer £125,000 cash, how am I going to pay back the outstanding debt.
According to other answers, my understanding is that the buyer will take a mortage to cover mine. Am I right?
- TwinklesLv 41 decade agoFavourite answer
A mortgage cannot be transferred to another person and should meet the individuals needs. You are right in saying that it is unlikely that you will be able to repay the whole mortgage from your mortgage repayments in the first couple of years. However, you can repay the mortgage when you sell.
When you sell the property you repay the outstanding mortgage from the proceeds from the sale. For example, you sell your house for £125,000 when you still have a mortgage of £80,000. You repay the oustanding £80,000 to the lender and you keep the remaining £45,000 (from which you pay estate agents and solicitor fees).
- AtalantaLv 61 decade ago
If you have a house with a mortgage, and want to sell, normally the outstanding mortgage gets paid off by the proceeds of the sale. Some lenders will let you transfer the old mortgage to the new property.
be careful - the amount you pay off the mortgage in the first two years will not amount to much, so the mortgage may end up being more than the value of the house when you sell. You really need expert advice, if only from the financial adviser at your bank, who may be able to help you free.Source(s): Bought and sold many times
- Max HeadroomLv 61 decade ago
The mortgage is a loan, to you, secured against the property.
When you sell, you either pay off your outstanding mortgage, or get the lender to transfer it so it is secured against your new property that you buy.
You cannot "transfer it to the new buyer".
Estate agents are money grabbing scum who do nothing much really other than advertise the house and try and sell you a really expensive mortgage.
Solicitors make sure everything is legal and above board.
- Anonymous1 decade ago
When you sell the property to someone else their Solicitor/s will do what they call a search on the property, it will then show that there is a mortgage outstanding and who this is owed to, (i.e bank for building Society etc) they then have a duty to their client (who is buying it from you) to inform their client and get in touch with the mortgage company and inform them that you are selling and their client is buying. and they will automatically send them the money when it all goes through.
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- Sal*UKLv 71 decade ago
You pay back whatever is outstanding on the mortgage when you sell.Estate Agents markets your home, Solicitor deals with the paperwork including clearing the existing mortgage at the completion of the sale.
- JessicaLv 44 years ago
Short answer is No. Your Solicitor has to promise to pay them the full amount as there is a charge on your house for that sum. The only way round this to take out a loan and pay the balance with that.
- 1 decade ago
A MORTGAGE ADVISER
THE MORTGAGE SHOULD BE TRANSFERABLE TO THE NEW PROPERTY SO THIS IS NOT A PROBLEM BUT JUST CHECK WITH THE LENDER FIRST THE ONLY PROBLEM OTHER THAN THAT WOULD BE IF YOU ARE DOWN GRADING AND THE PROPERTY IS WORTH LESS THAN THE OUTSTANDING MORTGAGESource(s): MY UNDERSTANDING AS AN ADVISER
- SLv 51 decade ago
if you borrow any amount you pay outstanding debt solicitors cost estate agents fees etc if you have equity in sale then you get any money back