Movement Mortgage

Rates have went up over the last 5 months, when we got our initial estimate when we started building it was around 5.75%. When we locked at end of April it was 6.375% and we used part of the builder credit to buy down 1/8 point. We did FHA 30-year fixed which kept the down payment at 3.5% of purchase price . We will hopefully be able to refinance later this year , early next year if rates drop a bit. We used Movement Mortgage as they were a preferred lender with our builder so that gave us some credit for using them. They were great to work with and made the process super easy

A- get the house valued by a few different estate agents they do this for free. (Have a look at the recently sold in the area, speak to the agents too. Do they normally go over asking, under asking (by how much eg 10%) or around list price) depending on this part maybe add on a bit or take a bit off the average valuation figure. Also if you know there is something wrong someone would pick up on a survey- knock the price down for this too as if you sold someone would have that discount etc. Then have a look how much your mortgage value left is and deduct this. The remaining balance is then half yours and that’s the buyout number Eg house value £200k (assuming houses tend to sell at price in your area so no movement), mortgage remaining £150k, that leaves £50k equity. Half is yours so £25k would be the buyout figure. If you sold- you’d be paying about £3.5k in estate agents and solicitors fees, and maybe a few thousand on mortgage early termination fees (more the longer you have left on your fixed term mortgage deal). So if you sold, you’d both say get £25k equity minus say £3k each in fees so you’d walk away with £22k. It could be argued that this is therefore the true buyout figure. Now when it comes to point C. Secondhand furniture is worth very little. The price you’re arguably owed is half the price you could get for it on Facebook marketplace. If I were you- I’d not push this issue for the sake of £200-£500 and would instead use it as a bit of a bargaining tool for the above point. So instead of trying to get £22k + £500 in the above example, say you’d accept maybe £24k just slightly under the equity figure as you aren’t paying any fees but you’d leave the furniture as you’d be better off anyway. On point B- if you are staying there, no paying rent wouldn’t complicate it, why would it? You don’t own it anymore at that point and you pay rent to live in anyone’s house who isn’t your friend? Obviously that’s a discussion between you but I’d personally just offer to pay lodger rates whilst you’re there. Eg if rooms in your area on rent a room are going for £400pm including bills, offer that. It’s a token as you will be using bills and costing them money and will also make you feel less pressured as you won’t be taking advantage.