Buying flat in London

maggiesoup

Hi, we are based in Scotland (where the law seems to be very different from England).  Son buying his first flat there..  Put in offer months ago which was accepted, paperwork seems to take forever in England? and he's to take 10% of the deposit to the solicitors tomorrow, although move in date has been given as 21st April.  Any reason why solicitors want a large sum of money (in their bank account) over a week before move in date?  Thankyou.

Flugelhorn

they need the deposit to exchange contracts which happens at a period of time before the completion (move in) date - can be anywhere from the same day to months beforehand. 

daveyjp

The 10% payment 'seals the deal'.  It means contracts are agreed and ready to be exchanged, once done no backing out without serious consequences.  There is then usually a period of time to allow buyers and sellers to get everything in place to actually move.

Building insurance needs to be in place at exchange, but as this is a flat building insurance should be covered by the freeholder and paid through service charge,  just check no further insurance is required on exchange.

For peace of mind the deposit is held in a client account which is separate to the solicitors office accounts.

maggiesoup

For peace of mind the deposit is held in a client account which is separate to the solicitors office accounts.

Thanks so much for clearing this up.  So, if it's held in a client account does that mean he would get any interest accrued, albeit a small amount for 1 week as it's £42,500  

user1977

There'll be sod all interest realistically.

Does your son not understand what's going on, or are you just asking for your own information?

macman

Traditionally it would be a month from exchange to completion in England and Wales.  A week is relatively short, but same-day exchange and completion is possible. There's no 'standard' timing.
The commitment is made at exchange, unlike in Scotland where offers are binding. Your son can pull out on the day of exchange if he wants to, without any penalty.

user1977

macman said:

Traditionally it would be a month from exchange to completion in England and Wales.  A week is relatively short, but same-day exchange and completion is possible. There's no 'standard' timing.
The commitment is made at exchange, unlike in Scotland where offers are binding. Your son can pull out on the day of exchange if he wants to, without any penalty.

Offers are not binding in Scotland. There is only a binding contract when missives are concluded - which will usually happen faster than the equivalent in England, but these days can drag on just as long.