Selling your current home and buying another means coordinating two sets of financial commitments. The proceeds from your apartment or house often fund the deposit on the next home, while your move-out date must fit the date you can move in elsewhere. Alongside deciding what to buy, you need to establish an order of events that can withstand a delay.
In Lithuania, you can sell first, buy first using the home-replacement lending exception, or coordinate both transactions around the same time. Each approach changes your exposure to price, mortgage, timing and moving risks. This guide helps you choose based on the facts as well as the wish to avoid moving twice.
Three ways to move home in Lithuania
There is no single correct sequence. The main factors are whether your current home has a mortgage, how much equity you hold, how quickly it could realistically sell and whether your household can rent temporarily. In practice, there are three main approaches.
| Approach | Main benefit | Main risk | Often suitable for |
|---|---|---|---|
| Sell first | A known budget and no pressure from running two mortgages | Temporary renting, two moves or pressure to find another home quickly | A household with limited reserves or a property that may take longer to sell |
| Buy first | An easier move and time to prepare the empty former home for sale | Two mortgages temporarily, extra interest and a bank-imposed sale deadline | A buyer with sufficient income, a readily saleable home and lender approval |
| Coordinate both | Less time between homes and sale proceeds available for the next purchase | A delay in one transaction affects both agreements | Well-prepared transactions with flexible timing |
Option 1: sell your current home, then buy another
This is usually the most cautious sequence financially. After selling, you know the actual amount left after negotiations, mortgage repayment, sale costs and any tax. That gives the bank a clearer basis for assessing a new loan, and removes the pressure to accept a lower offer because a lending deadline is approaching.
The trade-off is finding somewhere to live between transactions. You can negotiate a later handover in the preliminary or notarial sale agreement, but the buyer does not have to wait indefinitely while you find your next home. Alternatives include renting for a few months, storing your belongings or staying with relatives.
Temporary renting is also used internationally to break a property chain and reduce pressure to buy or sell in a hurry. The UK's public financial guidance service describes the extra rent and storage costs alongside the benefit of removing the chain; see MoneyHelper's selling guide. This is a general explanation of the practical trade-off, not a statement of Lithuanian law.
When is selling first particularly sensible?
- The sale period is difficult to predict or the current property has a limited buyer pool.
- You need almost all the net sale proceeds for the new mortgage deposit.
- The bank has not approved an arrangement that lets you buy before selling.
- Household income would not comfortably cover interest on two loans and both properties' running costs.
- Your requirements for the next home are unusual, so finding it may take time.
- You want to avoid cutting the price solely to meet a sale deadline in the loan agreement.
Option 2: buy the next home, then sell your current one
Lithuania's Responsible Lending Regulations include an exception for replacing your main home with another property suitable for permanent occupation. The lender may initially finance a larger share of the new home's price or value, with the missing contribution from your own funds paid after the previous home is sold.
Lietuvos bankas (the Bank of Lithuania) explains that this can allow temporary financing of up to 100% of the lower of the new home's value and purchase price. After selling, you reduce the loan by the required own-funds contribution. Its guidance recommends a reasonable contractual deadline of no more than 12 months from signing the loan agreement. A listing, preliminary sale agreement or other evidence can demonstrate the intention to sell. See the Bank of Lithuania's “Būsto keitimas” guidance on replacing your home.
What changed on 1 August 2026?
The updated Responsible Lending Regulations took effect on 1 August 2026. They changed deposit requirements for qualifying first-home borrowers and the exception for some second or subsequent mortgages. The home-replacement exception remains separate: the borrower changes their main home, undertakes to sell the previous home within a reasonable period specified in the loan agreement and then reduces the new loan-to-value ratio to the required level. The recommended period remains no more than 12 months.
The amendment effective from 1 August 2026 is available on e-Seimas, the Lithuanian Parliament's legislation portal. The application, binding offer and agreement dates may affect which transitional provisions apply. Ask the bank to confirm the requirements for your case.
One lender's home-replacement arrangement
One Lithuanian lender publicly describes temporary financing of up to 100% of the lower of the purchase price and valuation, with an undertaking to sell the current home within no more than 12 months. During the transition, principal repayments may be deferred so that only interest is paid. Conditions apply: the property being sold must be the main home, readily saleable and worth enough to cover the existing mortgage balance and the deposit contribution for the new home. Under this lender’s published terms, it must also be unmortgaged or mortgaged to that same lender.
This is one lender's product, not a service every bank offers on identical terms. Check the current Swedbank home-replacement description. Compare several lenders: their margins, temporary payments, accepted income, requirements for the existing property, amendment fees and early-repayment costs can differ.
Option 3: complete both transactions around the same time
In a coordinated chain, your buyer pays for your current home, those funds repay the existing mortgage and the remaining money helps finance your next purchase. In principle, the two notarial transactions can take place on the same day or a few days apart. In practice, coordination can involve four parties, two banks, two valuations, notaries and the physical handover of both homes.
The longer the chain of buyers and sellers, the more opportunities for delay. The official UK selling guide explains that a problem in one linked transaction can affect the others, with greater uncertainty where some participants have yet to find a buyer. Lithuanian contract law and notarial procedures differ, but the practical dependency is similar; see the GOV.UK guide to selling a home.
Should you schedule both transactions for the same day?
A single day reduces the need for accommodation between homes, but leaves little room for error. A late transfer, a buyer's mortgage that has not been disbursed or a missing bank document can hold up your purchase. Build in at least one of these safeguards:
- Several working days between receipt of sale funds and the next payment deadline.
- A payment sequence agreed in advance with the notary and both banks.
- A later handover of your former home, if the buyer agrees.
- A reservation for short-term accommodation, a hotel or storage.
- Contractual provisions for extending deadlines when delays occur beyond a party's control.
Calculate the real budget for your next home before listing
A common mistake is to base the next-home budget on an optimistic asking price for the current one. An asking price is not the final sale price, and even the sale price is not all available to spend. Use a cautious calculation:
Keep three price figures for your current home: an assessed market range, an initial asking price backed by market evidence and a fallback price you could accept while still meeting the new loan's conditions. The fallback figure stays private, but helps you decide what to do if the sale takes longer.
A property valuation also differs from the purchase price. The Bank of Lithuania notes that lending is normally calculated against the lower of the bank-accepted valuation and the purchase price. If you agree to pay more than the new home's valuation, you will generally need your own funds to cover the difference. See the Bank of Lithuania's guide for mortgage applicants.
An illustrative budget: the effect of a lower sale price
These are fictional planning figures, not market prices or a lending offer. Assume the lender’s mortgage settlement figure is €70,000, the budget for selling, tax and moving costs is €8,000, and the reserve to keep untouched is €10,000. Establish the actual costs and tax for your own circumstances.
| Calculation | Base case | Lower sale price |
|---|---|---|
| Final price of the current home | €180,000 | €165,000 |
| Mortgage settlement | −€70,000 | −€70,000 |
| Costs and tax budget | −€8,000 | −€8,000 |
| Reserve set aside | −€10,000 | −€10,000 |
| Available for the next home | €92,000 | €77,000 |
If your written financing plan required €85,000 of your own funds for the next transaction, the base case would leave €7,000 above that requirement, while the lower sale price would leave an €8,000 shortfall. €85,000 is an assumption for this example, not a mortgage-deposit rule. The lender confirms the loan amount and all conditions for releasing it.
Then add a delay scenario. If each additional month with both homes cost €900 under your agreements and expense list, three extra months would require another €2,700. Count that sum once and check whether it is already included in the €8,000 budget. If the plan only works at an optimistic sale price, adjust the purchase budget, transaction sequence or agreed financing before committing to the next seller.
Pricing your sale after reserving the next home
Reserving another home introduces a deadline, which can change your negotiating position. If the current home is overpriced, you may lose the most valuable early weeks and later have to reduce the price under pressure from the bank or your next seller. An aggressively optimistic price is particularly risky when moving between homes.
Base the opening price on completed sales as well as active listings, competing properties' time on the market, your home's condition and the intended buyer. Good photographs, a clear floor plan and professional presentation help attract interest early, alongside realistic pricing. Read more about why professional property photographs matter when selling and when home staging pays off.
What should you agree with the bank before reserving a home?
An online mortgage calculator is not a lending decision. Before paying a substantial advance to reserve a property, approach several lenders with the full picture: your current mortgage balance, existing home's value, expected sale period, proposed purchase price and household income. Ask for written answers on:
- Whether you qualify for a home-replacement arrangement and the maximum loan amount.
- How much of your own money you must contribute immediately and after the sale.
- The deadline for selling and acceptable evidence of your intention to sell.
- Payments and interest during the transition.
- Whether the existing home must be mortgaged to the same bank.
- What happens if the sale price or timing falls short of the plan.
- Any amendment, valuation and early-repayment costs.
- How long the offer remains valid and which conditions must be met before funds are released.
Preliminary agreements: how to connect the two transactions
If you can buy the next home only after selling the current one, the documents need to say so. A verbal assurance that you have found a buyer is insufficient. Have a lawyer prepare or check the specific clauses, and discuss the planned notarial transaction with the notary in advance.
Both preliminary sale and purchase agreements should be checked for:
- The exact price, the legal purpose of any initial payment and how it counts towards the price.
- A bank-financing condition and deadline for obtaining finance.
- A condition linking the purchase to your current-home sale, if the purchase depends on it.
- Dates for the notarial agreement, full payment and physical handover.
- The outcome if the valuation is lower, the bank lends less or the buyer withdraws.
- Extension conditions and procedures for notifying the other party.
- Refund of the advance, contractual penalties and responsibility for documented expenses.
- For mortgaged property, lender consent, debt settlement and the recipients of each payment.
- What stays in the home, when keys are handed over and how meter readings are recorded.
If the current home still has a mortgage, our guide to selling a property with a mortgage explains that part of the sequence in more detail.
A timeline from the decision to move through to handing over the keys
| Stage | What should be ready before you proceed |
|---|---|
| Financial review | Mortgage balances, income, reserves and scenarios from several lenders |
| Current-home assessment | Market value, opening and fallback prices, and a realistic sale period |
| Choosing the approach | A decision to sell first, buy first or coordinate both |
| Document preparation | Register entries, cadastral records, bank conditions and legal discrepancies resolved |
| Marketing the home | Professional presentation, buyer-finance checks and negotiating limits |
| Preliminary agreements | Aligned financing, notary, payment and handover dates |
| Completing the transactions | A confirmed payment sequence, loan disbursement and ownership registration |
| Moving | A plan for keys, condition records, meters, insurance and utilities |
How much should you keep in reserve?
Savings for the mortgage deposit are only part of the budget. Include valuations, notary and registration fees, bank charges, insurance, preparation of the current home, moving, possible storage, utilities for both properties, fitting out the new home and unexpected repairs. If you will temporarily have two mortgages, test the budget against higher interest rates and lower household income as well as today's figures.
The Bank of Lithuania recommends keeping savings equivalent to three to six months of expenses for unexpected difficulties. When moving home, avoid using this entire reserve for an advance or interior work: the transition is precisely when costs tend to overlap.
What if the chain breaks?
A buyer withdrawing, a lower valuation, a delayed lending decision or a problem with the next home's documents can stop one transaction. The consequences depend on the signed agreements. Before committing, decide what you will do if the main plan has not worked by a specified date.
- Plan B might involve another lender or a reserve of your own funds.
- Plan C might be temporary renting and postponing the purchase.
- A fallback sale price should allow a faster sale while still meeting the mortgage conditions.
- Contractual safeguards should clearly address deadline extensions and repayment of advances.
A contractual penalty cannot solve every practical problem when your household needs to move out that same week. Contingency arrangements for accommodation and belongings matter alongside legal protection.
Common mistakes when selling one home and buying another
- Reserving without lender approval. Treating a calculator result as an offer.
- Overpricing the existing home. Building the budget around listings instead of completed sales.
- Overlooking the mortgage repayment. Treating the entire sale price as money available for the next deposit.
- Compressing both transactions into one day. Leaving no allowance for transfers or documents.
- Relying on a verbal understanding. Failing to record the dependency on financing in the agreement.
- Forgetting the physical handover. Aligning notary appointments while move-out and key dates remain incompatible.
- Having no fallback plan. Letting the first delay force acceptance of a poor price.
- Committing emotionally before checking the sale finances. Allowing a dream home to weaken negotiating discipline.
When is it most useful to have one person coordinate the move?
Moving home involves more than marketing the property effectively. Bank responses, documents, buyer financing, both agreements' deadlines, valuations, notary appointments and handovers need to be coordinated in a single timetable. If each specialist sees only their own transaction, an important dependency may become apparent too late.
Elevare Homes can develop the pricing and presentation strategy for your current home, manage buyer communication, check buyers' readiness and coordinate the sale with the timetable for your next purchase. For a moving plan tailored to your circumstances, enquire about PREMIUM sale management.
Protect the chain with three separate checks: a financing condition before transferring the advance, a clear plan if the new home receives a lower valuation, and documents showing exactly what you are acquiring with the apartment.
Frequently asked questions about moving home
Is it better to sell the current home first or buy the next one?
Selling first is usually more cautious financially: you know your available funds and avoid a forced sale of the former home. Buying first makes moving easier but requires lender-approved financing, enough income for the transition and a cautious estimate of the sale price. The right sequence depends on how readily the home can sell, existing loans and your ability to rent temporarily.
Can a bank finance up to 100% of the next home when I move?
The home-replacement exception in the Responsible Lending Regulations can, in certain circumstances, allow temporary financing of up to 100% of the lower of the purchase price and valuation of the new main home. It is not an automatic entitlement. The lender assesses income, the existing home’s value and saleability, the mortgage balance and evidence of the planned sale. After selling, you must contribute the required own funds by the agreed deadline.
How long do I have to sell under a home-replacement arrangement?
Your loan agreement sets the deadline. The Bank of Lithuania recommends a reasonable period of no more than 12 months from the date of the loan agreement. The lender may impose individual conditions. Have both a target and a fallback sale price so you can meet the obligation on time.
Can the sale and purchase happen on the same day?
Yes, if the notaries, banks, payment deadlines and handovers are coordinated in advance. However, a same-day chain is vulnerable to delay: a problem with your buyer’s financing can hold up your purchase. Time allowances in the agreements or alternative moving arrangements provide more flexibility.
What should the preliminary agreements include when moving home?
Specify the price, advance, notarial signing and payment deadlines, financing condition, handover date, documents, each party’s liability and refund circumstances. If one transaction depends on another sale or a lending decision, state that dependency precisely in writing.
What happens if the buyer of my current home withdraws?
The signed agreement and reason for withdrawal determine the consequences. If the new purchase depends on those sale proceeds, the chain may break. Plan financing conditions, refunds, extensions and backup funding or accommodation beforehand. A lawyer or notary should check the specific wording.
How do I calculate how much of the sale proceeds can go towards my next home?
From a cautious estimate of the final sale price, subtract the exact mortgage repayment amount, any tax, sale and moving costs, and a financial reserve. Use a realistic sale price, not the asking price. Combine the result with the new loan amount approved by the lender.
Is temporary renting between a sale and purchase worthwhile?
Renting costs money and means moving twice, but can reduce the pressure to buy an unsuitable home or discount the sale solely because time is running out. It is particularly useful when you have specific requirements for your next home, the sale period is unpredictable or the bank has not approved a workable buy-first arrangement.