Distribution of funds

Lit1895

Hi all,

First post but serial lurker, please be kind :-):)

We've sold our house to a cash buyer and waiting to exchange. We'll be using the funds from the sale of our house to pay our 5% deposit we need on our new build we've reserved. We're doing HTB on the new build. I feel really silly asking this but just want to clarify how exactly funds are distributed.

Are the funds sent to everybody on exchange or completion? Also, I assume I need my buyer to provide funds first so that my 5% can then get paid?

Any help to understand much appreciated!

G_M

Unless otherwise agreed, each buyer pays 10% of thepurchase price at Exchange of Contracts, and the remaining 90% at Completion.

Lit1895

10%? I'm doing help to buy which is 5% which we've had confirmed as well.

davidmcn

Lit1895 wrote: »

10%? I'm doing help to buy which is 5% which we've had confirmed as well.

So that'll have been "otherwise agreed" then.

G_M

Lit1895 wrote: »

10%? I'm doing help to buy which is 5% which we've had confirmed as well.

I repeat:

Unless otherwise agreed, each buyer pays 10% of the purchase price at Exchange of Contracts,....

If you don't have the 10% in cash, then start negotiating an alternative agreement.

Or get a bridging loan.

kingstreet

The MAXIMUM deposit for exchange of contracts on Help To Buy Equity Loan is 5%, so your buyer's cash deposit will pass up the chain with your solicitor negotiating with the builder's solicitor for that deposit to be accepted as your deposit as well.

So you will actually put down less than 5% at exchange of contracts, assuming your purchase price is higher than your sale price.