Ftb

jimbo2108

Hi,

Just a quick question I am buying a house for £117,500. We are due to exchange contracts soon, all enquiries have been answered and sent back. However I am unsure of my deposit, I have £5,100 in a HTB isa (Now closed) however, the solicitor says I will need to transfer them £5,875.00? I'm not sure if this is correct? I thought the HTB Isa included a 25% top up which would bring my overall amount to £6,375.00?

Cheers,
James

diego_94

It will show on their statement the breakdown of the costs. As well as your desposit, you will have to pay solicitor fees etc.

Tiglet2

The bonus on a HTB Isa will not be available until completion and will go towards the completion monies, therefore it is not included as deposit monies. The bonus will show on your solicitor's final statement where it will set out all monies in and out, including their fees and third party fees (i.e. Land Registry, bank TT fees etc).

jimbo2108

Thank you for the responses, so I will have to stump up £5,875.00 at exchange of contracts

george4064

Your solicitor is simply asking for 5% of the purchase price, nothing to do with your HTB ISA.

Ben1989

Yes it cannot be used for deposits. You will get the bonus but it will be in the form of credit on your solicitor's invoice. Just cash flow

p00hsticks

jimbo2108 wrote: »

Thank you for the responses, so I will have to stump up £5,875.00 at exchange of contracts

I think the 'traditional' deposit amount at exchange is actually 10%.



But people often exchange with less.

If you don't have that you can get your solicitor to ask if the seller will accept a smaller deposit at the point of exchange - many do.



You just need to bear in mind that the deposit at exchange is potentially for compensation in case the contract doesn't go to completion due to the fault of one party or the other, and just because you've only handed over a smaller amount doesn't mean you wouldn't be liable for more if you did fail to complete.