Do you need a deposit when you are selling one house and buying another?

TBeckett100

We are selling and buying, i read the deposit is paid on exchange, but how does it work when your stamp duty and deposit is funded from the equity within the home?

silvercar

Deposits usually pass along the chain. So your buyer's deposit can be used to pay your deposit to your seller.

Once you have exchanged, your solicitor should give you an account that will show the outstanding amounts and the final balance.

TBeckett100

but if our deposit is 30 and my buyers is 15k how does that work?

franklee

silvercar wrote: »

Deposits usually pass along the chain. So your buyer's deposit can be used to pay your deposit to your seller.

I've never understood how that works

If someone in the middle of the chain pulls out of their sale and purchase then the buyer at the bottom of the chain loses both their deposit and purchase and the person compensated is at top of the chain. It seems odd to me that the person whose cash it was is left out of pocket and having to sue for their cash to be returned while someone else in the chain pockets that cash without having to sue.

I do not think I would allow my hard eared cash to be passed along the chain to persons unknown when I am the buyer at the bottom of the chain!

TBeckett100

its an interesting question, one i have never considered until now

barnaby-bear

TBeckett100 wrote: »

but if our deposit is 30 and my buyers is 15k how does that work?

15k gets passed up chain and you add the extra 15k from savings, loan, overdraft etc or try and persuade venodr to take less as deposit - which they may be able to do depending on their deposit issues up the chain....

scope

We were towards the top of a chain and I had to pay extra deposit due to the difference in price. Luckely I had some spare money in the bank.

MissMoneypenny

I never pay a deposit. I get asked to, but just say no.

lindabea

A 10% deposit is normally required on exchange. However, this can be reduced to 5%. But if the chain does not go to completion, the additional amount to make up the total of 10% becomes payable.

mlz1413

When i bought my first house I was asked how i was going to fund the 10% deposit and I said I couldn't, I was mortgaged to max, savings were paying solicitors/expenses.

As this was the difference between going ahead and not I offered £500 and the seller accepted, solicitors were up in arms at first then shut up and got on with it and everything was fine.

I'd ask the seller if the deposit can be the £15k as long as they can see you can afford the final payment everything should be fine.

Just a thought if its a long chain ask if everyone wants to complete on Thursday and move on Friday - if 1st solicitor doesn't transfer money until lunchtime then the last ones in chain will run out of time in banking day and have to wait until Monday!

TBeckett100

i thought no extra money was needed when tied in the house....... i havent got 15k, its in the house