Protection for deposit between exchange and completion

pph

zappahey wrote: »

Pay what to HSBC?

Well the equity required for the mortgage is 20%... I'll put down 10% upon exchange then someone else (seller I suppose) will take the other 10% upon completion. For some reason I had it in my head that it goes via the bank... with HSBC, due to the panel system, they are virtually the same entity %-]

pph

chappers wrote: »

Dont go panicing about this, housebuying/selling is stressful enough. Your deposit will be held most likely by your own solicitor or at the very least by thgeir solicitor and there is alegal framework in place, stating how it should be handled.
Everyone else has pretty much summed it up, don't exchange until everything is in place as if you could complete at the same time.

That's what I want to hear! The thing is, as I said, they really have been rubbish about answering enquiries and been very quick to point the finger at us. I mean that example with the understanding about the nature of the freehold above.. it was just a joke!

Back in March it suddenly occurred that it might have been a good idea to speak to the other co-freeholder before exchange to make sure they didn't have two heads... so I started this thread:

https://forums.moneysavingexpert.com/discussion/3839639

They only started trying to contact the freeholder, not for my requested meeting but as necessary anyway, in the last week or so! So incompetence with what seems to us a little bit of fishyness =

But yeah, sounds like if we do our part (i.e. be ready with the money when the time is right), we should be OK. I like that answer above, think about exchange as if it were completion. Cheers!

Johnhowell

pph wrote: »

Well the equity required for the mortgage is 20%... I'll put down 10% upon exchange then someone else (seller I suppose) will take the other 10% upon completion. For some reason I had it in my head that it goes via the bank... with HSBC, due to the panel system, they are virtually the same entity %-]

pph,
Listen to your solicitor. They should have informed you when certain monies are required during the purchase process. This is what happened when I bought; albeit some time ago:

Before completion, the solicitor will ask for some monies up front (the 10% you mention), on exchange or a short period before they will require from you any other monies to make up your deposit (another 10%?)

On completion (or just before) your mortgage lender (HSBC?) will forward to your solicitor the 80% LTV mortgage.

On completion your solicitor will forward to the Vendor's solicitor the agreed sale price.

Most probably after completion your solicitor will then send you an invoice for their fees/costs, etc.

Good luck,
john

jamesperrett

pph wrote: »

We are FTBs and now very nervous about exchange. The seller / seller’s solicitor has been really unhelpful in answering all our solicitor’s enquiries the process has taken ages.

Sounds like a normal house transaction to me - your solicitors will always blame the other solicitors for any delays no matter what the cause. There are nearly always complications of some kind so don't worry too much at this stage as it usually gets sorted out in the end.

The fastest property purchase I know of took just a couple of days (it wasn't a house and no loans were involved) but the slowest I've been involved with took 9 months from offer accepted to completion.

James.

James.