House Deposit

debbieallan

Please help, I'm a bit confused! About to put our house up for sale (Scotland). Our plan was to sell and buy another house more or less at the same time, ie both sets of missives being signed at the same time. We can't leave ourselves homeless. We would release about 50% of the value of the new house from the sale of the old one. However, now I'm a bit concerned because I keep reading about CASH deposits. Are we mean't to find this before we sell our own house? Is this something outwith the capital raised from the sale of our house?

beecher

The equity you have from your sale will be used as your deposit. You don't need any other cash. Your solicitor should be able to talk you through how the process works as he/she takes care of transferring the money to your lender.

debbieallan

Thanks Beecher, I was hoping someone would say that! The thought of having to put £15K upfront was a bit daunting.

beecher

None of us would ever move again if we had to come up with cash ;)Good luck with the selling/buying.

Robert_Sterling_3

There are two different deposits.

One has to be pais on the day you exchange contracts and is often 10% of the purchase price.

I moved recently. The chain was only involved three people.
We all agreed to 5% deposit.
My buyer paid a 5% deposit on my house and this was passed down the chain to my vendor. Quite painless for me. :j

Then there is the other deposit which is the amount of equity that will exist in the house you buy. This equity usually will come from the equity in the house you sell and so that can be quite painless too. :j

beecher

Robert_Sterling, the OP is in Scotland - we do things differently regarding the exchanging of contracts here.

Robert_Sterling_3

Ok. Thank you I will try to remember that in future.