What do I have to pay prior to completion?

Swash

Hi,

I am currently in the middle of selling my current home and buying my next home. Completion will be simultaneous. I am using equity in my current home to pay the deposit and SDLT for my next home. What fees will I likely have to pay before exchange or completion? I am trying to figure out how much money I will need upfront. 

The fees I can think of are deposit, SDLT, solicitors fees, Estate Agent Fees. At what point are these normally paid? 

Thanks,

Swash

Edit: to clarify, the sale completion and the purchase completion will be simultaneous, but there will likely be a week between exchange and completion.

avawat20

Deposit 10% of purchase price at exchange - can disuss reducing if required with solicitor. All others on completion with the exception of some costs for searches with solicitor- maybe management pack if you are selling somewhere leasehold or on development with a management company. All I can think of.

avawat20

Oh and you'll have to arrange home insurance if it's a house at exchange to satisfy mortgage lender - you may also need to do life insurance depending on their requirements.

greatcrested

Swash said:

Hi,

I am currently in the middle of selling my current home and buying my next home. Completion will be simultaneous. I am using equity in my current home to pay the deposit and SDLT for my next home. What fees will I likely have to pay before exchange or completion? I am trying to figure out how much money I will need upfront. 

The fees I can think of are deposit, SDLT, solicitors fees, Estate Agent Fees. At what point are these normally paid? 

Thanks,

Swash

Deposit? No. If simultaneous Exchange/Completion you don't pay it in advance (other than transferring to your solicitor in time for Completion.

SDLT? As above

EA fees? Paid after Completion by your soliitor (Usually)

Insurance? Pay on day of Completion.

Removals? Maybe pay in advance

badger09

Also, it is usual practice for the deposit paid by your buyer to be passed on to your vendor on Exchange. Some vendors will insist on you making it yup to 10& of your agreed purchase price - but as top of chain property (we broke the chain) we didn't insist on the extra £30k.

Insurance on new house from date of  Exchange. 
Removals - usually want a non refundable deposit a few days before move - negotiable!
Other payments eg solicitors  & EA fees, your solicitor will want cleared funds before Completion (ours specified the day before)

Angela_D_3

Sorry to hijack the thread but is it possible to pay the estate agents separately if you didnt want it to come out of the fees - and maybe the solicitors too ?  Im thinking at exchange so theres more deposit coming from the equity 

badger09

Angela_D_3 said:

Sorry to hijack the thread but is it possible to pay the estate agents separately if you didnt want it to come out of the fees - and maybe the solicitors too ?  Im thinking at exchange so theres more deposit coming from the equity 

Don't see why not. EA won't care who pays them, as long as they get paid
Solicitor will want paying, and usual practice to request enough on completion to cover their fees. Can't imagine they'd refuse if you paid before!

frogglet

Angela_D_3 said:

Sorry to hijack the thread but is it possible to pay the estate agents separately if you didnt want it to come out of the fees - and maybe the solicitors too ?  Im thinking at exchange so theres more deposit coming from the equity 

Our solicitor sent us a completion statement which we agreed just before exhange.
The money was deducted from our sale on completion before being sent to us. The solicitor paid the estate agent.
Have you looked at the contract from the estate agent?

eddddy

Angela_D_3 said:

Sorry to hijack the thread but is it possible to pay the estate agents separately if you didnt want it to come out of the fees - and maybe the solicitors too ?  Im thinking at exchange so theres more deposit coming from the equity 

I'm not sure what you mean by "there's more deposit coming from the equity"?

All you'd be doing is shuffling exactly the same amount of money to exactly the same destinations - but along different routes.

The final accounts would look exactly the same (same amount of equity, same amount of deposit, same amount of fees, same of expenses) whichever way you do it.

AnotherJoe

Angela_D_3 said:

Sorry to hijack the thread but is it possible to pay the estate agents separately if you didnt want it to come out of the fees - and maybe the solicitors too ?  Im thinking at exchange so theres more deposit coming from the equity 

Money doesnt have labels attached to it saying where it comes from. 

It doesn't matter where the money "comes from", the equity in your house and the cash in your accounts is ultimately one pool . You will put the exact same amount of money in whichever way you juggle it around. £3k direct to EA or £3k to EA via solicitor after you paid it to to them first. Makes no difference.

 

Angela_D_3

AnotherJoe said:

Angela_D_3 said:

Sorry to hijack the thread but is it possible to pay the estate agents separately if you didnt want it to come out of the fees - and maybe the solicitors too ?  Im thinking at exchange so theres more deposit coming from the equity 

Money doesnt have labels attached to it saying where it comes from. 

It doesn't matter where the money "comes from", the equity in your house and the cash in your accounts is ultimately one pool . You will put the exact same amount of money in whichever way you juggle it around. £3k direct to EA or £3k to EA via solicitor after you paid it to to them first. Makes no difference.

 

In my case it does actually have to come from certain sources,  some accountable for and some not