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How much to pay on exchanging contracts
BarmyBubba
Posts: 122 Forumite
All been well I am exchanging contracts this week for the house I am buying...thats if the searches come back from the local council.
The house I am buying is £122,500 and I am putting down a deposit of £12,500. Do I need to give my solicitor the full £12,500 as the deposit ready for signing the contracts?
The house I am buying is £122,500 and I am putting down a deposit of £12,500. Do I need to give my solicitor the full £12,500 as the deposit ready for signing the contracts?
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Comments
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Yes - it is usually 10% that is your deposit on exchange of contracts. Sometimes you can negotiate down to 5%. I am exchanging tomorrow on a £700,000 house and am putting down a £35,000 deposit only.0
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Totally agree it is usually 10% but sometimes the solicitor can negotiate to 5%.
Ask your solicitor how much he has agreed.0 -
OK, will do. Thanks for the comments.
I aint too fussed whether its 10 or 5% as the money is available. Or does it make a difference?
One more question.
The owner of the house now lives in Thailand. He has asked me to pay him a seperate deposit (of £2,500) to his cousin who is living in the house until it is sold. He is 2 months behind with the mortgage so wants this cash deposit to pay the mortgage and some other debts.
My solicitor has advised me not to pay a deposit direct. But I want to help the bloke out if I can just to ensure things move along nicely.
What would be the best way to do this? Or should I tell him no?0 -
No!!!!!!!!!!!!!0
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Sounds a bit dogey to me! What if the sale falls through, how will you get the £2500 back?
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What if I paid the £2500 upon exchanging contracts?0
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Still sounds dodgy to me!!!! You'd never want to pay 10% deposit and then the extra £2500 to him.
Do whatever your solicitor says!!!0 -
Listen to your solicitor, they are there to act in your best interests. If he is in arrears with his mortgage, your solicitor will ensure that the seller can clear any charge against the property upon completion. Is this £2,500 on top of the purchase price?0
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No, the £2,500 was part of the £122,500.
Was going to give £10,000 deposit to Solicitor. Mortgage of £110,000 and give him £2,500 cash upon exchange.0 -
Sorry to hijack your thread but I have a question along these lines, I am purchasing for £132800 and putting down only 5% with a 95% mortgage. Will this be ok with the solicitor? Or will they want a 10% deposit? If they do I will need a bridging loan.
Thanks
Phil--- Fat club weight loss -- Started 10th April 2015
Update: 28.4.15 - 8lbs0
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