Simutaneous Exchange/Contract-Deposit?

nickyrowlands1

Hello,

So background- i currently rent with my boyfriend and his friend off his friends stepdad (who owns the house)

Our landlordis moving to Oz next year, and has asked us if we want to buy (which we do). The house is worth approx 210k and to get 21k before feb is a task and a half.

My legal team at work has suggested a simulataneous exchange and completion, as there is no chain, we already live there etc.

Can i ask though, dont you have to give your 10% to the bank, and not to the solicitors? In that case do we still need a deposit?

Any advice would be great if possible, we are FTB also if that helps.

Many Thanks,

Nichola

Jeffrey_Shaw

Don't be confused. 'Deposit' means the [usually] 10% of purchase price, paid on exchange of contracts.
It has nothing to do with purchase price minus mortgage advance!
In your situation, no contract deposit is involved- but you will need to pay the 100% purchase price on completion in any event. This is so whether it is to be funded:
a. by mortgage advance; or
b. from your own pocket.

nickyrowlands1

i am confused.....

so is that a no?

Sorry...

Jeffrey_Shaw

nickyrowlands1 wrote: »

i am confused.....

so is that a no?

Sorry...

You do not 'give' anything to the Bank. You pay 100% of the purchase price (via solicitors) on completion.
Please re-read my last post.

nickyrowlands1

now i see!

thakn you very much...also

do banks like this sort of thing?

Jeffrey_Shaw

nickyrowlands1 wrote: »

do banks like this sort of thing?

You mean, simultaneous exchange/completion? It makes no difference to the mortgagee at all.

kiki*_2

You won't be able to get a 100% mortgage so you will need a deposit but this goes to the solicitor and then is passed on to the person you are buying off. The bank will give the solicitor the rest to pass on also.