Seller wants access to deposit before completion

KRB2725

I would have my doubts that the money was for a rental deposit.

As another poster has said, this would equate to a rental of around £4K pcm. If they could afford a rental of £4K a month, they would not need an advance of £6K.

I think they are lying about what they money is for (partially at least) and I wouldn't do it.

dgtazzman

I would tell them I will consider the proposal AFTER exchange if contracts. If they do exchange, I would then turn the idea down. If they insist on it before exchange, I'd turn the table and tell them if they don't drop the idea, they will not have to take the house off the market as I'd be walking away and finding another property.

In the interim, ask the EA if he has any similar properties to show you as you fear you might have to withdraw from the purchase as the sellers are being awkward, which should get him off his chair to put some pressure on them.

JimmyTheWig

AdrianC wrote: »

And what was YOUR solicitor's advice?

^^ This.
This is what you're paying your solicitor for, to give you advice through the process.

Cheshirecat88

Thanks everyone. Our solicitor has advised us against it. I just wondered if anyone had heard of this before and the consensus seems to be that its very unusual. We've decided to tell them that we are not willing to allow access to the deposit before completion and wait to see what happens

bitsandpieces

From that deposit amount, they're selling a house for around £60k? It's hard to believe that they'd need anything like £6k to rent a similar place, even if paying 6 months rent up front. All does sound strange.

Cheshirecat88

No the house is selling for more than that. They don't want access to the entire deposit but a part of it.

HouseBuyer77

I wonder if their proposed LL would accept a letter from your vendor's solicitor saying £6'000 will be transferred directly to them on completion of purchase in lieu of an upfront deposit?

Though as above £6'000 is a large deposit for a rental, there's probably more to this.

Conrad

It doesn't add up, on one hand the seller is so desperate they need you to fund their deposit, on the other they are completely indifferent and will just take their home off the market.


Honestly unless they've done you some big favour in return such as giving you a large discount, I'd walk away if they wont budge on the deposit.

note3

They may have bad credit ratings (ccjs or similar) and the only way to get a rental is 6 mths deposit up front. That said, a letter from your solicitor confirming 6k would be transferred directly upon completion to the LL if they provide details could perhaps be sufficient?

MataNui

note3 wrote: »

They may have bad credit ratings (ccjs or similar) and the only way to get a rental is 6 mths deposit up front. That said, a letter from your solicitor confirming 6k would be transferred directly upon completion to the LL if they provide details could perhaps be sufficient?

Its not sufficient. It still ignores the (increasing) possibility that the sale could go south after exchange. The OP will be in no better a position to get that money back by doing that than just flat agreeing.

Being entitled to the deposit back and getting it back are 2 very different things. Thats why its held by the solicitor in the first place and not given out as pocket money.