Exchange Deposit ...

Pepperoni

Hi,

I've read a few times now RE having to pay a deposit when you exchange on your new property. What happens if all the money for your new home is coming from your old house that you're selling?

Hope that makes sense. Just wondering if it's taken care of, or if you have to still come up with a deposit...

Thanks

alex_163163

If you are selling and buying at the same time, then the deposit your buyers are providing will be passed up the chain, and so will be your deposit.
From everything I have read/ researched it's unlikely you will have to contribute more to the exchange deposit out of your pocket.

mrschaucer

So if you are selling for 200K and buying for 300K and the deposits are set at 10% of purchase price, what about that extra 10K deposit that you need after you've taken your buyer's deposit into account?

alex_163163

Well i guess if both the solicitors have agreed at 10% then you may have to find the extra. But your solicitor should negotiate with the sellers to agree a lower deposit as far as I am aware, if you have no 'cash' to contribute.
I am currently buying and selling a property. The deposit from my buyers (bottom of chain) is £14k, and we are buying new place for £210. We aren't contributing the extra £7k to get a 10% deposit. My solicitor has sorted this out and agreed it with our sellers.

G_M

The amount of the deposit is usually 10%, but this can be reduced if both parties agree.