Exchange Deposit/Cash Deposit

srichards92

Hello everyone,

This has probably been asked before, so apologies - I can't seem to find what I'm looking for I'm a little confused when it comes to exchange deposits.

Here's our situation:

• We have agreed the sale of our current property at 295k.
• We have Help to Buy on this property, so will be paying back 20% of the sale value back to Help to Buy (59k).
• After paying our mortgage back, we'll be left with roughly 75k equity.
• We have had an offer accepted on our next property at 315k and have had a mortgage accepted on this property for 233.5k (10% deposit plus 50k from equity from the sale of our current property).
• The buyer of our current property will be providing a 10% deposit - 29.5k.

When it comes to exchanging, will our buyer's deposit of 29.5k go up the chain and we'll just need to provide the difference of 2k to top up our deposit on the new property on exchange?

We're fortunate that we've also saved 31.5k in cash, thinking we'd need to provide this on exchange ourselves (total newbies when it comes to buying and selling in a chain ).

My second question is...Does the 31.5k cash we've saved (minus the 2k to top up our deposit on exchange) go anywhere in the transaction? Are we able to retain the remaining equity on our current property (25k) and our saved cash to pay for conveyancing fees/moving fees/renovations on the new property/etc.

Hope this makes sense (please be kind if it doesn't, haha).

Thanks!

TheJP

Usually the deposit from your sale will suffice even if its less than 10%, its a formality. Keep the £2k in your pocket, the £31.5k well that's your money and kudos for saving that amount. 

Chat to your solicitor and tell them to tell your sellers solicitor that the deposit will come from the deposit of your sale.