Exchange of Contracts, deposit & completion date HELP!

stinkypluff

Hi all,

We've received our hard copy of final mortgage offer today.I emailed my solicitor today to ask 1) Check they'd received the offer, 2) Their final invoice statement and 3) Their bank details for payment.

I received a call from the secretary asking me to make an appointment to go in and sign, to which I asked if we need to have our deposit and legal fees ready for the solicitors - She said my solicitor would go through this when I see him.....

I'm confused, I think we're supposed to exchange contracts next week and actually move in to new place on 27th april (completion day) - What is the process for payment etc?

Also when do you start paying the mortgage if the completion date is a few weeks after exchange of contracts?

Please excuse my garbled scrawl, I have flu and I'm a little out of it!:mad:

The_J

You start paying the mortgage after completion, usually a month or two later depending on how long the direct debit takes to set up.

You have to pay a deposit on exchange of contracts.

Thrugelmir

For your solicitor to effect the exchange of contracts next week. They will require cleared funds for the deposit. This is normally 10% of the purchase price.

Are you in a position to transfer the funds?

Ask as many questions as you wish.

stinkypluff

Well, it's a shared equity house. house is 180k, government put up 10% and developer put up 10%, our deposit is 11K and Mortgage is 133K.

stinkypluff

Why else would the solicitor want us to see him....... The secretary said solicitor wants you to come in and sign..... I'm confused and our solicitor really doesn't fill me with confidence!

The_J

Have you done money laundering checks, signed everything? If not and you live locally going in is the easiest way to do that.

Thrugelmir

stinkypluff wrote: »

Why else would the solicitor want us to see him....... The secretary said solicitor wants you to come in and sign..... I'm confused and our solicitor really doesn't fill me with confidence!

To need to sign the contract to purchase.

stinkypluff

Yes we've signed the money laundering forms. Just to test my understanding.....
So we have to sign a preliminary exchange of contracts? Then we have the deposit ready and THEN we exchange contracts?

Thrugelmir

To commit to the purchase. You exchange contracts with the vendor.

Once done your solicitor will complete his work and drawdown the mortgage funds from your lender. On completion day the funds are paid across and you receive the keys.

Oxid8uk

You will sign the contracts in readiness for exchange. At the appointment your solicitor will tell you where to send the deposit and when. They will also require you to send over the fee for their work and stamp duty (and any fee for the estate agent if you are selling).

Once your solicitor has your deposit they can then exchange contracts with the vendors solicitor, and a completion date is agreed.

Your solicitor will then draw down the funds from you lender, usually a day before completion. You first mortgage payments depends on when completion occurs, for example, I completed on the purchase of my property mid October and the first payment came out on 1st December.