What do I have to pay prior to completion?

AnotherJoe

Say a parent is paying your EA fees, it makes zero difference if the money comes from your pooled funds via solicitor, your pooled funds partly from different sources, your pooled funds bumped up by parents money, or separate payments from you and parent*

If it didn't, you've discovered a magic money tree, get on and tell the chancellor immediately!  

Is there a condition from a lender you are evading via a loophole  (no criticism intended) because they also don't acknowledge that the ultimate source of money is all that counts?

* for example ive just helped my daughter buy a house. Some of the money I paid to her and she paid that on to solicitor, some I paid directly to solicitor. Had there been an EA to be paid, I could also have paid them directly. End of the day, it's as simple as £x came from me and £y from her and the order in which each party got paid (ea, solicitor etc) and who paid out at the end, made no difference to the basic overall sources of the money. 

Swash

greatcrested said:

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

Sorry I wasn't clear. The sale completion and purchase completion will be simultaneous. But there will likely be a week between exchange and completion. Does this make a difference in when I need to transfer funds to my solicitor? Thanks.

badger09

Swash said:

greatcrested said:

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

Sorry I wasn't clear. The sale completion and purchase completion will be simultaneous. But there will likely be a week between exchange and completion. Does this make a difference in when I need to transfer funds to my solicitor? Thanks.

Before Exchange, your solicitor will need the deposit - usually 10%, for your purchase. BUT, if you are buying & selling simultaneously, the deposit from the person at the bottom of the chain gets passed upwards to the top. Often means person at top gets much less than 10% (we did) but it doesn't really matter.

Then before Completion, at least the day before, your solicitor will need cleared funds for the balance of the purchase, plus their fees, plus EA fees. Again, any 'profit' from your sale gets passed up, but if you need to add more, you must have it with solicitor in plenty of time. They will arrange for mortgage funds to be xferred to them 

Swash

badger09 said:

Swash said:

greatcrested said:

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

Sorry I wasn't clear. The sale completion and purchase completion will be simultaneous. But there will likely be a week between exchange and completion. Does this make a difference in when I need to transfer funds to my solicitor? Thanks.

Before Exchange, your solicitor will need the deposit - usually 10%, for your purchase. BUT, if you are buying & selling simultaneously, the deposit from the person at the bottom of the chain gets passed upwards to the top. Often means person at top gets much less than 10% (we did) but it doesn't really matter.

Then before Completion, at least the day before, your solicitor will need cleared funds for the balance of the purchase, plus their fees, plus EA fees. Again, any 'profit' from your sale gets passed up, but if you need to add more, you must have it with solicitor in plenty of time. They will arrange for mortgage funds to be xferred to them 

Thanks very much, this explains it perfectly.

Swash