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House Move - Exchange Deposit
DisneyAce
Posts: 13 Forumite
Hello, incoming silly question!
We are due to be moving house in the coming weeks. Having only purchased New Builds previously, we have just found out about the Exchange Deposit. As we are upsizing, there is a difference between the amount we will receive from our buyers and the amount we have to pay.
We have savings that can top up to almost where we need to be and this has been offered to the sellers solicitor.
One thing our solicitor was very careful in the way the answer was worded to the question "we get this money back, right?". Obviously, I don't expect the deposit itself to be returned to us but essentially it will come back to us through the Completion Statement and the subsequent transaction.
My understanding is that any monies we part with will go towards our actual deposit on the house and increase our money received back from the solicitor during Completion?
We are due to be moving house in the coming weeks. Having only purchased New Builds previously, we have just found out about the Exchange Deposit. As we are upsizing, there is a difference between the amount we will receive from our buyers and the amount we have to pay.
We have savings that can top up to almost where we need to be and this has been offered to the sellers solicitor.
One thing our solicitor was very careful in the way the answer was worded to the question "we get this money back, right?". Obviously, I don't expect the deposit itself to be returned to us but essentially it will come back to us through the Completion Statement and the subsequent transaction.
My understanding is that any monies we part with will go towards our actual deposit on the house and increase our money received back from the solicitor during Completion?
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Comments
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Where else do you think it might go?1
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Towards the equity in the house, thin air, solicitors brown envelope!
Just looking for reassurance that handing over £20k of our savings isn't going to just result in it not coming back to us in one way or another.0 -
It is unlikely you will be asked to make the difference in the deposit. The bottom of the chain deposit normally passes up through the chain. For example our chain of three where a 27k deposit paid by my buyer was deemed sufficient to meet the 44k deposit on the property i bought
Do wonder if this would be acceptable where the usual 10% is a huge difference0 -
Yes, we had this exact situation and the extra we had to pay upfront came back to us from the proceeds of our house sale.
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At exchange of contracts, you (or your solicitor) hand over a deposit to the seller (or their solicitor). This is a proportion of the value of the property you're buying.This deposit compensates the seller if you do not complete the purchase after exchanging contracts. However if you do complete the purchase then the deposit forms part of the payment you're making towards the price of the property.0
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of course it will come back - there will be a completion statement at the the end it will read:
cost of new property + expenses =XX
Balance of money on sale of previous house (after costs)= ZZ
Your deposit = YY
your mortgage = AA
Solicitors will add up ZZ+YY+AA and then take out XX and then there will be a line saying -
Balance due to you: BB2 -
Perfect, thank you all.
We have offered up our 10% we recieve but it has been declined, so we have offered more by topping up with savings. It's only a 4 house chain so shouldn't really be that difficult to agree.0 -
do same day exchange no deposit thenDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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depends how much they want a saleDisneyAce said:
I think that’s easier said than done! Just because we might want it, doesn’t mean the others will agree to it!chanz4 said:do same day exchange no deposit thenDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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