Deposit query and exchange

wanderer2426

I've never bought and sold together at the same time before and just wondered if anyone could advise on the following. I am close to exchange, just waiting on the local council search coming back. My house is being purchased at £87k and I am buying at £134k. Am I right in thinking that my buyers 10% deposit of £8700 will be used towards my deposit of £13400 and therefore I pay a deposit of £4700 on exchange or will I have to pay the £13400?

AnotherJoe

Yes your buyers deposit rolls up so at most you'd be asked to pay the difference and sometimes even that isn't needed.

wanderer2426

Thanks for the quick response, do you know in what circumstances you wouldn't have to pay that? Does any of the mortgage get drawn down before completion or just on completion? My equity doesn't cover my deposit by about £2k so have to find this at least plus the fees, but this is less than £4700 so is it possible I wouldn't pay the full £4700? Sorry it's all a bit confusing to me!

AnotherJoe

No i dont know sorry. Some time ago i posted that you always had to put your 10% in (as thats always what i'd had to do) and got a sound slapping for being wrong and had enough similar responses to be convinced i was !

But i dont know what the circumstances are other than to guess that you plead poverty to your seller and hope they are OK with that.

p00hsticks

wanderer2426 wrote: »

Thanks for the quick response, do you know in what circumstances you wouldn't have to pay that?

Although 10% is the standard deposit on exchange, it's perfectly possible to go with less if both buyer and vendor agree. If you want to ask your vendor if they'll accept a smaller percentage on exchange, get your solicitor to ask their solicitor.

G_M

Your solicitor can ask the seller's solicitor if they'll accept a deposit of £8,700.


They might say yes. They might say no. but it's fairly standard.

aries_163

Yes your buyers deposit will be passed up the chain to your seller.
It!!!8217;s more than likely you won!!!8217;t have to add any extra money at exchange to get to the full 10% of your purchase. A lot of people buying are solely relying on their equity in the house they are selling and don!!!8217;t have additional cash to top it up with. Ask your solicitor to check this is ok with the sellers solicitor.
Although just to note, I have read that whilst the full 10% might not be exchanged on exchange day, if you backed out for some reason after exchange you would be liable for the full 10% and the seller could chase you for this.