Exchange and completion

saajan_12

Youve misunderstood. Sounds like the lender is suggesting the normal process for chains, ie :

1. Exchange on both properties at the same time
--> the deposit you receive from your buyer is what you use for your sale. If this is less than the 10% then your solicitor needs to negotiate that with your seller). 

2. Arrange removals, etc as you have a firm completion date

3. Weeks later, complete on both properties at the same time 
--> that means you receive the money from your buyer, use that to pay for your purchase together with the mortgage that shifts over all on the same day as you physically move. 

If you DON'T align in above and instead complete on the sale THEN complete on the purchase, then in between you won't have a mortgage.. so you will need to pay the 10k ERC.. that money would come out of the money from your buyer. This situation would also mean you don't have anywhere to live in between, so likely a non starter. 

user1977

OP, as you seem confused about the whole process and only mention having spoken to your lender - haven't you discussed with your solicitor? It's them who ought to be guiding you through this.

propertyrental

user1977 said:

OP, as you seem confused about the whole process and only mention having spoken to your lender - haven't you discussed with your solicitor? It's them who ought to be guiding you through this.

Indeed. Though good luck with that with a cheap conveyancing warehouse.....

theartfullodger

Yes - but selling (with sister) late brother's house which was going to be gutted.  So nothing to move out or in, we weren't fussy about the date.  So all sorted but much much easier than normal.  Good luck.