Exchange and completion on house

Hi TBeckett100,

Is there any other option for people with 100% mortgage or do all of them exchange and complete on same day?

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I am a bit confused here, I am a FTB with 100% mortgage and no deposit, so what happens at exchange regarding this 5% or 10% deposit you guys r talking about?

Unless you are getting one of these 105% loans such as those offered by Northern Rock, if it is literally 100%, then usually you will have to find some money for SDLT, Land Registry Fees and the solicitor's costs on top. You give that to your solicitor before exchange and he uses it as the deposit. On a £150K property this would be a bit over £2,000 so your solicitor will try to persuade the people up the chain to accept that on exchange... It is not ideal but often the bottom line is whether someone who has put £2,000 in, would walk away, and not complete, thereby throwing that money away?

The sum paid over comes off the amount the seller's solcitors will need to be paid to them on completion but as 100% mortgage money will appear the costs SDLT etc get paid out of the surplus.

If not you either pay for a deposit guarantee policy (which is quite expensive for what it is) or exchange and complete on the same day. Usually the FTB with the 100% mortgage has nothing to lose by exchanging with a nil deposit a week or two before completion, but the sellers, if they are buying something else will be more windy about this because they stand to lose out more if something goes wrong.

themdns wrote: »

Hi guys,

I am having a really stressful problem.

Basically seller wants to E&C on the 29th January. However, I am still awaiting mortgage offer. valuation was done on house on wednesday.

seller made it clear if E&C not complete they will pull out.

I will then lost my deposit.

Is there anything I could do to basically stop seller from pulling out?

Will I lost my deposit? Will I have to pay for the solicitors still and the mortgage broker?

It is stressing as I am also without a place to stay then as my current contract on the house I am renting is finished on the 31st January.

I will be grateful for any advices or past experiences.

Please HELP!

It is possible to do in the timescale you give. If you haven't paid a deposit then don't until you have your mortgage offer and are happy you can complete by a given date. Have you had the Survey report back yet as this may mean renegotiation with the seller?

If the seller pulls out they are not going to find anyone else to buy by the 29th January. If the seller does pull out then you will lose any money you have spent on a survey plus your solicitor will probably charge you for the work they have done upto date unless you negotiated otherwise.

How long has the process been going on for for the Seller to ask for a completion in a couple of weeks?

themdns wrote: »

i have forgotten to mention that it is a brand new place, i am buying off developer.

offer was accepted on the 14th December. valuation was only done on wednesday 13th January.

i am afraid that developer is keen to pull out as the asking price for a similar unit on the floor above is now fixed by +25k from my offer.

this is depressing!

Where has the +25K come from?? Has it SOLD at + 25K? If that was the case the developer wouldn't be pushing you for a completion date he would be handing you your deposit back and your fees!!

Stick to your guns you can't make the bank move any faster and 6 weeks including Xmas / New year is stretching it really unless you had cash. I take it the property is completely finished?