Equity transfer and purchase of new property

AskAsk

My husband and I are getting divorced so I am buying him out of our family home and he is currently buying a new house.

For personal reasons, I would like the equity transfer to happen at the same time as the new purchase, so that they are linked to each other.  That is the money that I will pay him (cash from my savings) will be paid to his solicitor on the date of exchange of the new property purchase.

We have instructed our own solicitor for the equity transfer.  His solicitor is also doing the purchase of the new house for him.

I have asked my solicitor if the full monies being paid to my husband's solicitors on the exchange date of his house is good enough timing but my solicitor is on holiday for 2 weeks and so I do not know if I will get a reply before then.  I will get my husband to ask his solicitor as well in due course, but I just wanted to hear if anyone can see any issue with this timescale?

Whether it is too tight a timescale for the new purchase as theoretically we are in a chain for the new purchase, which is chanin free, if we do it this way.

propertyrental

Likely to depend whether he is exchanging/Completing on the same day (so money needed in advance), or whether there is, for example, a 2 week gap (money can be sent post exchange in time for Completion.

user1977

Does he need the money for exchange? If you don't know, neither do we! But it's possible.

I know your reasons are personal, but it seems an unnecessary complication to link the transactions. Presumably he's entitled to the money, no matter what he wants to do with it?

AskAsk

propertyrental said:

Likely to depend whether he is exchanging/Completing on the same day (so money needed in advance), or whether there is, for example, a 2 week gap (money can be sent post exchange in time for Completion.

it will likely be a gap between exchange and completion as he can agree this with the seller.  there is no reason why he has to agree to exchange and complete on the same day.

AskAsk

user1977 said:

Does he need the money for exchange? If you don't know, neither do we! But it's possible.

I know your reasons are personal, but it seems an unnecessary complication to link the transactions. Presumably he's entitled to the money, no matter what he wants to do with it?

he doesn't need the money for exchange, but that is a good point.  that if he does, then the money needs to come the previous day at least.

we haven't got the court financial split yet, so he isn't entitled to the money as such as we are doing this voluntarily to enable him to buy a new property and move out.

however, as we are still financially joined together for the divorce purpose, i want to make sure the money is going towards a new property and not something else, otherwise, we will have to wait for the court process in splitting assets as that is a proper clean break.