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Deposit payable on exchange question
SR1
Posts: 147 Forumite
If I'm moving to a property priced at £272000 from one at £150,000 and have to pay a 10% deposit on exchange, where am I meant to get the rest of the 10% from if all my money is in equity ?
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Comments
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Wonga, Cash Converters, Bank, Credit card, bank of mum and dad.......Eat vegetables and fear no creditors, rather than eat duck and hide.0
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Your purchaser's deposit will pass up the chain, becoming a smaller percentage of the higher values as it goes, so it won't be 10% in your case.
Solicitors will sort it out among themselves.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »Your purchaser's deposit will pass up the chain, possibly becoming a smaller percentage of the higher values as it goes if the sellers agree, so it won't be 10% in your case.
Solicitors will sort it out among themselves.
You ask this as if someone owes you a duty to resolve the issue. You are planing to buy a property. It is up to you to arrange the necessary finance.where am I meant to get ....
(though kingstreet offers one possible solution. Phil offers others.)0 -
Ideally (or essentially, really) you need to have access to the money for your deposit, or you get like the situation I am now. The person below me in the chain has not got enough ready money for the deposit. This has only come to light just before exchange.I must remember that "Money Saving" is not buying heavily discounted items that I do not need. :hello:0
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now i had the same query,,, and as it transpires, my solicitor only pays my sellers solicitor on completion. As my buyers have paid their 10 per cent, which has gone to mine. However, i wont see any of my money until completion.
As my money for deposit was coming out of proceeds of house im selling.0 -
In 31 years and hundreds of cases, I've never had one where someone had to top up a deposit to make it 10% of their purchase price.
What happens if everyone in the chain is getting a 95% mortgage?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
If your selling and buying the deposit from your sale will go up the chain as said before. It will be 'held to order' so the actual funds get transferred on completion.
The completion statement will let you know the money you need to pay for completion after exchange has happenedCurrently studying for a Diploma - wish me luck
Phase 1 - Emergency Fund - Complete :j
Phase 2 - £20,000 Mortgage Fund - Underway0
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