Exchange Information Help

funkyfin2000

I wander if someone can just clarify this for me!

We are buying a property at £317,995 (New Build) with 15% deposit for ourselves out of the equity in our sale and 10% coming from HTB.

Our purchasers of our property, are paying cash - £170k.

At exchange we don't have any savings to prop up the exchange deposit required, it will be all out of our equity (including all solicitors fees etc)

Therefore, I presume our buyers will need to provide that when we get to exchange from their 10% deposit on our property - IE their cash in will provide our deposit out the otherside.

Our developer requires a 5% deposit at exchange and we will require 10% deposit from our purchasers.

Is that how it works?

Otherwise, the only option I can see is that we complete on our property before the purchase of our new one to release the equity and we look to rent!?

Any help gratefully received!

kingstreet

Yes. That's how it works.

The buyer's deposit from the bottom of the chain passes up the chain becoming a smaller percentage of the higher purchase prices as it does so.

Solicitor agree this among themselves and with their clients' approval.

funkyfin2000

Thanks Kingstreet. Very small chain here, so just us and the purchaser of our property.

10% for them is £17k and 5% of ours is £15,899 so should work perfectly without putting anything else in.

Thanks See you are in Stafford, so are we

kingstreet

We'll fall out if you are buying at the TW "Blenheim Manor" site as that is what is currently being turned from the field behind my home to the building site where you will live in one of their ticky-tacky little boxes.