House deposit from equity?

kezzygirl

Good evening all, we are purchasing a house and porting our mortgage. I just wanted to ask how the deposit from our equity would work?would the bank release the funds for exchange or would thus need to be simultaneous with completion?we are second time buyers so not been in this situation before. Thanks in advance.

Thrugelmir

You'll need to find the funds for the deposit on the new property. Standard deposit is 10%. If you have less, then the solicitor will attempt to negotiate on your behalf. Normally ok, but sometimes not. 

Mizydoscape

Do you have someone buying your house? If so, the deposit can be passed up the chain if your vendors are happy to accept less than 10% at exchange. That's what we did.

Drawingaline

Whatever the deposit is from the bottom of the chain passes up. Totally normal, we sold for 235 and were buying at 410. All our money was tied up in our equity, solicitors agreed with our buyers deposit passing up (so way less than 10%) we were buying a chain free property so it didn't go up any further.

It's normal and when we got the initial forms from our solicitors it had a form to fill out for details including how we would be purchasing the house. I put mortgage and equity from sale property. 

Obviously some people could refuse this and request a full 10% deposit on exchange, but this should come out quite early on in the conveyancing, and I imagine is pretty rare. Most people selling and using equity don't have a 10% deposit just sitting in the bank. 

kezzygirl

Drawingaline said:

Whatever the deposit is from the bottom of the chain passes up. Totally normal, we sold for 235 and were buying at 410. All our money was tied up in our equity, solicitors agreed with our buyers deposit passing up (so way less than 10%) we were buying a chain free property so it didn't go up any further.

It's normal and when we got the initial forms from our solicitors it had a form to fill out for details including how we would be purchasing the house. I put mortgage and equity from sale property. 

Obviously some people could refuse this and request a full 10% deposit on exchange, but this should come out quite early on in the conveyancing, and I imagine is pretty rare. Most people selling and using equity don't have a 10% deposit just sitting in the bank. 

Thankyou,that's what I was hoping would happen!! I will contact our solicitor tomorrow and confirm.

NQManchester

When I exchanged I paid about 2% deposit instead of 10% but the contract still said I’d be liable for the full 10% 

kezzygirl

I've heard back from nationwide and they said usually the deposit travels up the chain, but obviously we would need to exchange for our sale before providing for our purchase