urgent help needed - completion deposit for new house

adamandkate

I just got an email from my solicitors with the completion statement. Balance due of about £4000 which I have sent them.

Also in a letter which looked like a standard template they mention 10% deposit for exchange of contracts. I know they currently hold £211,000 which has been paid to them from my mortgage company. Will they just use some of that money to pay the 10%?

Im just getting worried as I know I don't have the money to pay the 10%. They are getting 13k from the sale of my current property so i'd have to find 13k by tomorrow lunchtime in order for them to exchange as we have to complete on monday. Which is going to be impossible unless I can burden myself with a really fast loan!!!

please advise me asap! thank you so much!

TBeckett100

You'll find that most deposits given aren't 10%. It'll be the equity they expect on the house sale to cover it but if you don't complete, you'll lose 10% of the purchase price.

Panic not, if people who sell and buy had to find 10% the property market would collapse lol

adamandkate

thanks.

but as the lesser deposit hasn't been pre-arranged do you think exchange might not happen tomorrow? the buyer of my property is pulling out if completion doesnt happen on monday so things are getting really really tight.

libf

Your title says completion deposit. You definitely need all 10% at completion f you've got a 90% mortgage.

At exchange you can pass the deposit up the chain.

adamandkate

libf wrote: »

Your title says completion deposit. You definitely need all 10% at completion f you've got a 90% mortgage.

At exchange you can pass the deposit up the chain.

as they hold all my mortgage money wouldn't they just use that?

TBeckett100

If your sale is at the same time as your purchase then basically whoever starts the chain at the bottom, it's their deposit which is fed up the chain which may or may not be 10% of what they are paying.

Your solicitor has asked for 4k, you've paid what they need.

You are liable if you fail to complete to pay 10%, but the solicitors know it is a lesser sum that passes up the chain

Chillax

TBeckett100

They won't use your mortgage money as a deposit. This is because technically the mortgage money is used to complete whereas a deposit is used for exchange

Thrugelmir

adamandkate wrote: »

the buyer of my property is pulling out if completion doesnt happen on monday so things are getting really really tight.

How much is your buyer putting forward as a deposit.