Solicitors - deposit

HumbleBumble_3

Hi

We are looking to sell our house and purchase another and I have just started looking around for solicitors. I have had one lot of paperwork through about the timelines of purchase etc. and it states that the solictors ask for a 10% deposit.

We don't have that kind of money as it is tied up in our house. Can anybody tell me if we do need to have this money up front? If this is indeed the case then we won't be able to move.

Many thanks
HumbleBumble

nomoneytoday

There will be bills well above a couple of £100 when you move..

hcb42

It's never been a problem when I have been buying and selling..

SmlSave

Hi Humble,

Generally if you're selling and buying at the same time then you don't have to provide the deposit as it comes from the sale. If you are buying for lots more than your sale then you might need to make up the difference.

sonastin

If there is a chain then I think the deposit from the bottom of the chain passes its way up to the person at the top. The percentage is steadily less than 10% as it goes, assuming that the purchase price increases up the chain. If a buyer can make up the difference then they do that but if it is all coming from the sale then I think it is a combination of negotiating a lower % and solicitors undertaking to each other that the money is on the way...

HumbleBumble_3

That's helpful SmlSave

We hope to sell for £180000 - £185000 and prucahse a property for £200000 so we should manage the difference between the two.

evoke

What do they want a 10% deposit for?

If it's for the purchase of your next property then that usually comes out from the sale of your current one if there are sufficient funds or you pay it from savings. As others have said, if the property price increases up the chain then you often don't pay anything and the 10% deposit at exchange of contracts is handled by the solicitors moving money around between themselves. That 10% deposit is usually non-refundable and commits you to the purchase.

If it's for their conveyancing fees then it's only going to be around £100.

kingstreet

I would guess you have a note of fees designed for those buying only, where you'd be expected to pay your deposit to your solicitor in advance of exchange of contracts.

This is pretty much redundant when you're selling and buying as your equity is your deposit.

Some solicitors do ask for an advance when you're buying. This covers the search fees and is normally around the £300 mark. In this way, if your purchase doesn't proceed, they've already covered their out of pocket expenses and will normally not charge you until you finally complete a new purchase, using them.

Richard_Webster

That's helpful SmlSave

We hope to sell for £180000 - £185000 and prucahse a property for £200000 so we should manage the difference between the two.

With those figures it is unlikely you will have to make up the difference.