Has anyone brought a house with a Homebuy scheme? - Deposit

Northants_Simon

I'm buying a house using the Homebuy scheme but have run into an issue. The estate agent are kicking up a fuss because normally the buyer would pay 10% at exchange of contracts, Homebuy won't pay until just before completion. Our solicitor said it's unlikely the sellers solicitors will accept this and we'll have to exchange and complete the same day. Homebuy say there must be at least 7 days between exchange and completion. So I'm a bit stuck.

You'd think they would be happy to have sold the house the way things are, yet now it seems the whole thing might fall through because of this.


We made it clear from the start (even before we viewed the house) that we would be using Homebuy, when we put the offer it it was also on this basis. It wasn't a problem then, but now it seems to be. All the money is in place, I have signed the contracts.

peb

OK, is there a chain above?

Usually if something (not always 10%) is offered then everyone will accept the position - do you have anything to offer? Often legal fee etc can be offered by way of deposit. It is preferable not to exchnage without a deposit but if needs must it is usually accepted.

I'm confused at the reference to estate agents - deposit paid is none of their business and they usually don't konw if one has been paid!

You should be able to exchange on a minimal deposit otherwise look into no deposit insurance.

Northants_Simon

They are buying an empty house after someone died, I'm a first time buyer. So there isn't really a chain, although at present it is the house they are buying that is holding us up. Things seem to be going slowly at their end, at my end I'm ready to go.

I could put a deposit down, but what happens then? Do I get that back when we complete?

Richard_Webster

Usually if something (not always 10%) is offered then everyone will accept the position - do you have anything to offer? Often legal fee etc can be offered by way of deposit. It is preferable not to exchnage without a deposit but if needs must it is usually accepted.

I'm confused at the reference to estate agents - deposit paid is none of their business and they usually don't konw if one has been paid!

You should be able to exchange on a minimal deposit otherwise look into no deposit insurance.

This is normally the common-sense solution - but your solcitor should have explained all this to you. I can't really see why Homebuy need 7 days between exchange and completion - unless they have some jobsworth issue - the reality is it might take them 7 days to get the money - not much longer than it would take your solicitor to get your mortgage money - so you could exchange and complete on the same day or as suggested find a deposit to pay over on excahnge and this would effectively be returned to you following completion.

brummybloke

maybe the estate agents will fund the 10% as they know as long as exchange is done, you are not likely to pull out? they risk losing their comission if it falls through now

Maseillo

We are in the middle of buying through the Ownhome scheme and we have no deposit. Our solicitor knows this, and he has all the info from the Ownhome people and it states in there that we need to have a certain length of time (can't remember if it was 7 or 10 days) between exchange and completion. But it doesn't seem to have presented any problems for us. Not so far anyway! There must be a way around it!

Sarah x

Claudine

Hi we have bought using homebuy and had to find a 5% deposit of £10500 as u said catalyst were not very helpful and said there was nothing they could do. I do think they need to address this becaus eif there is a chain you can understand that the vendor then needs the deposit to put on his house etc... we now move in in two weeks and i think (fingers crossed) everything is fine. Also think yourselves lucky if you have had the money apporved as homebuy has now run out of funding till at least march next yr!!!

damian_g

Maseillo wrote: »

We are in the middle of buying through the Ownhome scheme and we have no deposit. Our solicitor knows this, and he has all the info from the Ownhome people and it states in there that we need to have a certain length of time (can't remember if it was 7 or 10 days) between exchange and completion. But it doesn't seem to have presented any problems for us. Not so far anyway! There must be a way around it!

Sarah x

Could you share how much time did it take to you, let's say, from when you rung them first time to the co-op bank acceptance? We are waiting for an interview and fingers crossed. And just wondering how much do they allow to spend in ex. for 2 bed apartment? We have found one brilliant for 185k. For now - we just have to wait