same day exchange and completion

mair1 · 24 March 2006 at 4:08PM

We are 100% FTB and have no deposit to put down on exchange so sol has suggested that we may need to 'carry out a simultaneous exchange and completion .... both occuring on the smae day'. What are the logistics of this and does everyone further up the chain have to agree?

[Deleted User] · 24 March 2006 at 4:18PM

I can see why your solicitor said that, but it can make other people along the chain feel uncomfortable as effectively you (and them) have to pack your belongings, book (and pay) a removal firm and be ready to move BEFORE the house is legally yours which is a bit risky as anyone could back out at the last minute and the whole chain collapse.

If I was your Vendor I'd still ask you to exchange (even without deposit, perhaps with a clause saying that if you don't complete you have to pay 10% of the asking price whitin a timeframe) a few days before completion, if only for peace of mind.
Best of luck!

shykins · 24 March 2006 at 4:28PM

i have done this but as van says logistically it can be a nightmare and anyone can pull out at any time

basically yes everyone has to agree to it and if u have a long chain its kinda unlikely they would all want to take the risk

if not i guess u could take a loan out for the deposit and then repay it when yr 100% mortgage comes thru.. maybe use a credit card??.. i am sure even if u have a week between exchange and completion everyone would be happier and if u repay the credit card straight away it wont cost u anything

i assume yr soliitor is pushing for a 5% deposit for you

good luck

mair1 · 24 March 2006 at 4:35PM

yes purchase price is 205,000 (have to type that quickly as it still makes me feel nervous!!!) so sol is mentioning 10250.00 as a deposit which we simply do not have. We have the funds available to pay stamp duty and sol fees approx £3250 - do you think it wouold be feasible to offer this as a deposit and then sol take his fees from mortgage monies upon completion?

robwend · 24 March 2006 at 4:43PM

worth a shot you never know:D

mair1 · 24 March 2006 at 4:49PM

why does this all have to be so difficult - surely the fact that we are getting a 100% mortgage means that we dont have a deposit, otherwise we would have gone for a 90 or 95% mortgage.

[Deleted User] · 24 March 2006 at 4:49PM

I can't see why not!

[Deleted User] · 24 March 2006 at 4:51PM

I think it's a question of trust, people further up the chain don't know you and dont' want to take risks.

robwend · 24 March 2006 at 4:52PM

yes ive ftbers and i want a deposit!! lol its just eases the mind

mair1 · 24 March 2006 at 5:00PM

quite frustrating though - we have pulled out all the stops so far - saw house almost exactly 4 weeks ago at 7pm put in offer next day - offer rejected - upped offer same day - offer accepted and since then as chain is dependent on us have constantly chasing mortgage company re valuation and subsequent mortgage offer. We are happy for sale to proceed asap even though this will mean us paying out extra as we may well have an overlap in our rented property and the property we are buying

silvercar · 24 March 2006 at 5:22PM

I would be worried about someone in the chain not playing fair and holding another party to ransome. If everyone is packed up in removal vans what is to stop someone dropping the price by £2,000 on the day or demanding that they are removing the lounge carpet with them?