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Woohoo
scrivomcdivo
Posts: 132 Forumite
Woohoo - I've received a copy of our contract from our solicitor today also requesting an ideal exchange date we'd like to aim for. I'm excited now as it would appear all is going through fine.
One problem I see on the letter though. We're getting a 95% mortgage and we're paying a 5% deposit. Nonetheless, the letter asks we pass the solicitor a 10% deposit for exchange. Do we pay this (as we're only paying 5%) or should the mortgage cover this?
One problem I see on the letter though. We're getting a 95% mortgage and we're paying a 5% deposit. Nonetheless, the letter asks we pass the solicitor a 10% deposit for exchange. Do we pay this (as we're only paying 5%) or should the mortgage cover this?
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Comments
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I dont no the answer as I was wondering that myself but good luck anyhow
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basically what happens is that you tell your solicitor ( who should know that you are only putting down 5%
the vendors sol then makes a decision whether they will accept it ( ie the vendor should be asked this- I was)
then all ploughs on as normal
this is cos if you pull out between exchange & completion the vendor gets to keep your deposit.
thats what i was told anyhow :beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0 -
Most sellers will accept 5% these days.
In my recent chain, someone announced a day prior to exchange that they could only give 4% as they had to keep money back for work agreed to be done prior to completion. All the humans in the chain agreed but the solicitors started murmurings. By then I was having daily phone calls with everyone in the chain and we all then "instructed" our solicitors to accept this.
If you pull out between exchange and completion you are liable for the full 10%!I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
So is it just a matter of me telephoning the solicitor tomorrow and asking them to negotiate the deposit?0
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If you pull out between exchange and completion you are liable for the full 10%!
Aha! thanks for that Silvercar. I hope it doesnt happen but if it does, technically Im quids in :beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0 -
The actual deposit handed over at exchange is very negotiable.
Example:
Buying a house for about £500,000
10% deposit would be £50,000
Could be a problem but ...
... solicitor said " Whatever deposit you get on the
house you are selling will be passed to the owner of the house you are buying"
Problem solved.
However if you sign and exchange contracts then whatever deposit has been paid has to be topped up to £50,000 in this case...0 -
lynzpower wrote:Aha! thanks for that Silvercar. I hope it doesnt happen but if it does, technically Im quids in
In your case you would be OK; if you had a purchase lined up it would cause you immense problems.
Also, you may have to sue to get the remainder of your deposit. Fine if you know where the buyers live AND they have money not so good if you can't track them down and they are bankrupt!I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Ive got his address :beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0 -
But if we're wishing to exchange and complete on the same day, then I just give the solicitor my 5% and the mortgage company give the solicitor the other 95%?0
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