10% Deposit /exchange

beth111

I am now all in a tizzy:( I spoke to my solicitor this morning regarding our house sale and purchase, she mentioned getting the 10 % deposit to her :eek: All our deposit aswell as the stanpduty money is tied up in the house we are selling. After the deposit comes in from our buyer there will be £7500 shortfall. I was under the impression this money comes from the bank am I wrong? do I need to get this money now from thin air to allow us to exchange?

loubel

The deposit from your sale will be used as deposit for your purchase. You just need to let your solicitor know. She will need to warn your sellers that you won't have the full 10% but this isn't usually an issue. You are still liable for the 10% if something goes wrong though. Your solicitor can explain it all to you.

jbainbridge

When we sold / bought our buyers deposit was passed on at exchange - though this wouldn't have been 10% it wasn't a problem.

Talk to your solicitor - it shouldn't be an issue.

dc197

Please see my recent post on the same issue.
It seems that if your sale and purchase are similar in price, there's no need to top up.
Your sellers might want to know you're good for the whole 10% though and might not be happy with the lack of cash to the tune 7.5K. Apparently it is up to your sellers.

https://forums.moneysavingexpert.com/discussion/comment/70527932#Comment_70527932

mrschaucer

Just a general point, and not getting at the OP in any way, but it seems that increasingly people are having difficulty with the concept of "a 10% deposit on exchange". If you are going to have difficulty providing it (from whatever sources) then you should be talking early to your solicitor so he can ask whether the seller is happy to proceed with less than 10%. You should NOT be leaving it until exchange time. Why should your seller be happy with £7K odd less than he was expecting - he might be planning on passing the whole expected amount up to his seller, plus a bit more maybe from his own pocket if he's trading up, and now he can't make HIS deposit. It's thoughtless, to say the least. These things can usually be sorted, but they need time.

visidigi

My buyer asked the day BEFORE exchange to pay me an equivalent of 2% deposit as they were exchanging with me before they signed the sale of their house.

I was polite and said no 10% no sale - as if I signed and their buyer pulled out (they were signing three days later) it would have all got very messy.

The buyers solicitor got arsey. They were told to put up or shut up.

We're all due to exchange by the end of this week.

beth111

*Update. I spoke to our solicior, she advised that we wont have to find the extra as we are buying and selling, Phew! The shortfall will only be around 15% of the 10% and this is normal.

She also told me to stop worrying so much!!! I CANT HELP IT