exchange and monies

goldengirl28

hi all, hope your all enjoying the glorious weather

i've a question about money at the exchange

i'm in a chain of 3

buyer who is buying mine for 105000
house i am buying for 210000
my seller who is moving into rented

so my question is, we need to give 10% deposit on exchange, how will this work in principle

my buyer pays 10 thousand five hundred - does that move up the chain to me?

Do i pay the difference - of 10 thousand five hundred or do i have to provide the full 21 thousand?

also, i'm paying 40k deposit that is coming of the equity of the sale, does that mean that i get more back from the sales as i've already paid 20k

sorry if this doesn't make sense as i'm struggling to get it right in my head

G_M

my buyer pays 10 thousand five hundred - does that move up the chain to me?

Yes. That will be paid to your solicitor (if you are using one).

Do i pay the difference - the 10 thousand five hundred

Yes - you pay the difference of 21K less 10.5K to your solicitor who will then have the full amount to pass up.

also, i'm paying 40k deposit that is coming of the equity of the sale, does that mean that i get more back from the sales as i've already paid 20k

At Completion you will need to pay the full price (210,000) less the deposit already paid (21K). You receive the full mortgage amount that you are borrowing for the new property. You will need to pay off the existing mortgage on your sale. You will receive the balance from your purchaser (sale price less deposit he's already paid you. You will have to pay the balance on your purchase (purchase price less the deposit you've already paid) using the mortgage and your equity and the cash from your sale - plus you'll have to pay your solicitors/estate agents fees etc.

Your solicitor (again, if you are using one) should advise you how much he needs from you at each stage. If in doubt, ASK. That's why you pay him (/her).

goldengirl28

thanks G_M

i was going to ask the solicitors, but she had a couple of days holiday and it was really starting to worry me

i can rest easy now.....................thankyou