Buyer has an Islamic mortgage

BilboB

Hi everyone, I'm new here so I hope I'm doing this right


We are selling our late Dad's house to a buyer with an Islamic mortgage. I was informed last week by the estate agents that the buyer's bank has now deposited 50% of the agreed price and that we are set to exchange and complete this coming week.



I understand the basic principles of an Islamic mortgage but am confused as to why the bank has so far released only 50% of the agreed price. I can't at the moment get hold of the estate agent to ask them, hence my question here.


If anyone can help I'll be very grateful, thanks in advance

Slithery

I am confused as to why they've released that much.

Only 10% is usually needed on exchange of contracts, the rest isn't needed until completion.

Or are you intending to exchange and complete on the same day?

davidmcn

It's quite likely that the estate agent is talking a load of nonsense. I suggest you get your information via the solicitors instead. Is it possible that the mortgage is only for 50% of the price? Or that the 50% they're talking about is actually the equity coming from the buyer (as they'll tend to send that to their solicitor slightly earlier than the mortgage funds)?

Exactly how much and when the lender releases the funds isn't necessarily all that relevant to the timescales, other than they'll need all the money by the date of completion.

PasturesNew

Ignore how much it is - all you're interested in is getting the full amount on completion day and how the buyer organises their life/finances isn't something you need to get "worried" about.

G_M

Perhaps the mortgage is for 50% and the other 50% is the buyer's savings?


Who knows? And why do you care?


As long as you get 100% on Completion as per the contract, the source(s) of the funds are irrelevant.

BilboB

Hi everyone and many thanks for your replies


@ Slithery, we are intending to exchange and complete on the same day, so I guess that may explain why they've deposited more than 10%. The process has been going on a long time (we got their first offer back in April) and they have raised all kinds of issues to get the price down. We finally dug our heels in and said we weren't going to go any lower and if they weren't happy with that we would put the house back on the market. I wonder if the 50% is their way of saying "Yes, we really, really do want it"!


@davidmcn, good thinking about talking to the solicitors rather than to the estate agent! If only they weren't so slow to get back to us every time we ask them a question, though... The mortgage is for nearly 96% of the price and the buyers have already paid their share of the equity.


@PasturesNew, good thinking! We are in roll-on-completion-day mode right now and are so looking forward to it all being done and dusted; when it is we will be :j


I think our niggling worry is that they are going to come up with yet more issues to string the business out. We're keeping everything crossed that they aren't but it's still in our minds as a possibility.

BilboB

@ G_M, many thanks for your reply The mortgage is for nearly 96% of the price and the buyers have already deposited their part. I think we are just chomping at the bit because it's already taken sooo long and we don't want any further delays


I've said to my husband many times recently that patience isn't my strong suit and he just looks at me and nods, lol!

AdrianC

BilboB wrote: »

I think our niggling worry is that they are going to come up with yet more issues to string the business out. We're keeping everything crossed that they aren't but it's still in our minds as a possibility.

The fact they've paid over five times more than the usual exchange-day deposit says that things are much more likely to go ahead than you'd normally expect before exchange.


Is the other 50% coming from a chain sale?

G_M

AdrianC wrote: »

The fact they've paid over five times more than the usual exchange-day deposit says that things are much more likely to go ahead than you'd normally expect before exchange.

Is the other 50% coming from a chain sale?

I was informed last week by the estate agents that the buyer's bank has now deposited 50% of the agreed price

I assumed this meant the bank has passed 50% to the buyer's solicitor in readiness for Exchange/Completion, not that it had been paid to the OP/seller as a deposit......

theartfullodger

Would your position or concerns be any different if everything was the same but loaned by Ecclesiastic?

diggingdude

If they try to drop the price on exchange/completion day have you decided what you would do? That might be the main thing to prepare for