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How it works – Swapping
Say your property is £175,000 and the property you want to swap with is also £175,000 then it's simple
Your solicitor draws up a contract with the sale price the same as your purchase price
How it works – Going downmarket
Say your property is £300,000 and the property you want to part exchange with is £200,000
The contract is drawn up by your solicitor. Your sale price is £300,000 and your purchase price is £200,000.
If you have a mortgage of say £50,000 this is paid off and you will receive the balance
How it works – Going upmarket
Say your property is £250,000 and the property you want to part exchange with is £350,000.
The contract is drawn up by your solicitor. Your sale price is £250,000 and your purchase price is £350,000
You have a current mortgage of £50,000 so
Your property: £250,000
Minus your £50,000 mortgage = £200,000 equity
Property you want to part exchange with: £350,000
Minus £200,000 equity so a mortgage for £150,000 is required