When do you give deposit to solicitor

The_Palmist

Hi Guys,

When do you usually transfer money to solicitor when buying a house.

Regards
Palmist

lewishardwick

A few days before exchanging. They need to ensure the funds are available when you hit the big button!!

Enjoy home ownership!

The_Palmist

lewishardwick wrote: »

A few days before exchanging. They need to ensure the funds are available when you hit the big button!!

Enjoy home ownership!

Thanks, I am just filling the forms they sent and it has a section asking for when did you transfer the money. Felt strange as I am only just asking them to move on with purchase.

Will call them tomorrow.

Nicola83

We exchanged last week and our solicitor rang the day we exchanged and took our deposit. I've just paid our share of the fees today as we're completing on Friday and they obviously need all the funds before then.
Good luck with your new house purchase !!!55357;!!!56842;

lovehols

We can't complete til the 22/03 but all the queries have been sorted and there is just some amendment of figures from the mortgage company (reduced borrowing) though I suspect by the end of next week everything will be sorted.

For my own sanity I'd like to exchange as soon as we can but will it just be the mortgage deposit they need or will it be the stamp duty too? Is there any particular downfall to exchange 3 weeks before completion?

The_Palmist

lovehols wrote: »

We can't complete til the 22/03 but all the queries have been sorted and there is just some amendment of figures from the mortgage company (reduced borrowing) though I suspect by the end of next week everything will be sorted.

For my own sanity I'd like to exchange as soon as we can but will it just be the mortgage deposit they need or will it be the stamp duty too? Is there any particular downfall to exchange 3 weeks before completion?

You have 30 days from completion to pay SDLT.

Anything more than 2 weeks is fine I hear.

silvercar

For my own sanity I'd like to exchange as soon as we can but will it just be the mortgage deposit they need or will it be the stamp duty too? Is there any particular downfall to exchange 3 weeks before completion?

More than likely your solicitor will be acting for the lender as well as for you. To ensure that the mortgage is registered on the deeds, along with your ownership, the solicitor will need to be in a position to have all the money necessary to complete everything. For this reason solicitors generally ask for all money, including stamp duty to be with them before completion. Otherwise they will come unstuck if you don't have enough funds to pay stamp duty.

davidmcn

The_Palmist wrote: »

You have 30 days from completion to pay SDLT.

Solicitor will need the SDLT funds before completion, if you're buying with a mortgage.

lovehols

Thanks. I have emailed the solicitor. I did wonder if they would just as for the mortgage deposit for exchange and then perhaps a week before completion ask for the stamp duty. I'll double check. If they want the whole lot I think I'd rather hold off exchanging until closer to completion.

G_M

Your solicitor will not receive any money from your mortgage lender until just before Completion.

You will need to give your solicitor the 10% deposit (unless a different figure is negotiated & agreed with the seller) in advance of Exchange. Once an Exchange date beecomes a near certainty, transfer tthe money so that it is ready. Your solicitor can then agree the exact Exchange date with the seller knowing he has the money ready.

Assuming a gap between Exchange & Completion (a week? two? three?), your lender will then release the mortgage amount to your solicitor aday or 2 before Completion, and you will need to transfer any additional outstanding amount ( eg towards the purchase price, SDLT, disbursemets, legal fees etc). The solicitor ccan then Comlpete on the agreed date having all the funds ready.

If you are Exchanging & Completing on the same day, or with a very short gap (eg a few days), then your solicitor will want all the money before Exchanging.