My Buyer has a 100% Mortgage!

ibme_uk

As the titles says, I've just found out (a week before we can exchange) that my buyer has 100% mortgage and therefore will not have funds to transfer to our solicitors account when we exchange, so if they pull out between exchange and completion we will not have the funds to cover the deposit on our purchase. And we would have to sue them to recover the costs.

Our solicitor is suggesting that we simultaneously exchange and complete our sale and purchase at the same time on the same day (with no time period in between). This will reduce the risk, but that’s still not ideal as we could loose out on removal costs and the hassle of changing addresses with utility suppliers etc not to mention the stress of packing!.

Anyone come across this before and have any advice to offer...help!

silvercar

Standard I'm afraid.

The other options are to accept a token deposit of say £500 to enable you to exchange earlier. If they are paying stamp duty, you could suggest they use the stamp duty as a deposit on exchange as this money won't be needed until after completion.

Dan_Collins_2

This is standard unless they have some cash, what if you pull out they have nothing also!

molit

This happened to me - everything went fine, although it is very stressful. I was advised not to exchange in this instance. Only potential way of reducing the stress is if you can arrange to stay somewhere for a week with all your stuff in storgae for a week - fairly cheap at this time of year, but does cost.

By the way GOOD LUCK

ibme_uk

Thanks for your input, my main concern would be that I would owe out on a deposit for my purchase without any deposit cash from my sale in the solicitors bank to draw from.

Ideally the two would be the same amount and passed up the chain reducing my risk should the purchasers pull out.

The thought of exchanging and completing on the same day is quite daunting as the buyers could change the date at any time leaving me high and dry with a front room full off boxes, utility companies cancelled and phone cut off! not to mention a costly van parked on the drive that i have no use for.:mad:

I just wish the estage agent had done there job and found all this out before they made there offer!