Funds between exchange and completion

123Debtfree

Hi there, I’ve just had my mortgage offer and am due to exchange on my new house the end of next week. Since I’ve had all my checks, statements sent in etc I’m £15k down on the amount that my solicitor saw as proof of funds originally, as I’ve had a family medical emergency I had to pay for. Im going to be replacing the funds about a week after exchange, so in plenty of time for completion, but am just a bit worried as the amount has dipped from my original proof of funds. Am I over thinking this and just being too paranoid? Will my solicitor ask to see my statements again in between exchange and completion? Am I being silly? 

user1977

Where are you "replacing the funds" from?

123Debtfree

Hi. It’s my earnings, I’m self employed. 

user1977

So...what are you worried might happen? At worst, your solicitor might want up to date statements to verify the source of the latest funds.

p00hsticks

Providing that you are confident you'll have enough to pay the required deposit at exchange, and the balance plus SDLT (if appropriate) and conveyancer at completion, I can't see how it could be a problem (but I've no recent experience of these things). 

123Debtfree

Well… I’m not sure!! I guess I’m worried I spent money from the account I’ve saved all my house money in and showed the Solicitor and mortgage company it was there, and I shouldn’t have done that. It’ll be replaced with perfectly legitimate earnings. Im
aware im probably  being paranoid but it just has been keeping me awake… I’ve sent the exchange funds to the solicitor already. Apologies if im asking a stupid question. Perhaps too honest for my own good. 

123Debtfree

p00hsticks said:

Providing that you are confident you'll have enough to pay the required deposit at exchange, and the balance plus SDLT (if appropriate) and conveyancer at completion, I can't see how it could be a problem (but I've no recent experience of these things). 

Yes I will have all of that. Ok that’s reassuring thank you 🙏🏻 

macman

You are worrying about nothing. You were asked to show evidence of the deposit funds, and, at the time you showed that evidence, that was the correct balance. Until funds are required for exchange, you can do what you want with it, as long as you can still finance the exchange, which you now have.
If you can'f fund the balance owing on completion, you will of course forfeit the deposit, but that doesn't require you to prove funding a second time, and you have already said that you have sufficient income to replace the shortfall before completion.
If you are still concerned, ask your conveyancer.

123Debtfree

macman said:

You are worrying about nothing. You were asked to show evidence of the deposit funds, and, at the time you showed that evidence, that was the correct balance. Until funds are required for exchange, you can do what you want with it, as long as you can still finance the exchange, which you now have.
If you can'f fund the balance owing on completion, you will of course forfeit the deposit, but that doesn't require you to prove funding a second time, and you have already said that you have sufficient income to replace the shortfall before completion.
If you are still concerned, ask your conveyancer.

That is exactly the position I am in, and you have explained that so clearly. Thank you. I will sleep finally tonight. I appreciate your help. X 

eddddy

123Debtfree said:

I’m £15k down on the amount that my solicitor saw as proof of funds originally, as I’ve had a family medical emergency I had to pay for. Im going to be replacing the funds about a week after exchange, so in plenty of time for completion.. 

I guess you're not really concerned about "proof of funds" - I guess you're concerned about "Anti Money Laundering Checks".

The solicitor needs to be happy that the money you're using to buy the property isn't the 'proceeds of crime' etc.

You say that the £15k has come from your self employment. If you want to be 'extra well prepared' - in case the solicitor asks for more info - you can have some accounts ready to show the solicitor.

For example, if you issue invoices, I guess you can have your invoices ready, and cross referenced to the transfers shown on your bank statements 

Or if you mostly take cash, some evidence that the cash deposits are 'legit'. e.g. If you normally pay in £2k per week in cash, suddenly paying in £15k in cash one week might look suspicious.

 

AskAsk

proof of funds are done before exchange.  they don't do it again between exchange and completion.