House Buying Flowchart/Process

russbeck

lotto-dreamer wrote: »

8. Exchange contracts (your deposit is required) - (you can now book your removal company!)

Hi, Just wonder what happens when the deposit for the new house is the equity from the house we are selling? How can we pay a £30k deposit when we don't physically have the cash? We are currently selling our first house so are new to this and just assumed that the deposit will be paid on completion. Or is this the case and I am just making something of nothing. I'd ask the solicitors but its sunday and this has got me thinking.

Hope someone can help.

otter1_2

russbeck,

Your solicitor will ask you whether you intend to use your buyer's deposit as the deposit for the house you are purchasing. Obviously this means your deposit is unlikely to be 10% (assuming the house you are buying is more expensive than the one you are selling), but this is fairly standard practice and wouldn't be seen as a barrier to your purchase.

lotto-dreamer

russbeck wrote: »

Hi, Just wonder what happens when the deposit for the new house is the equity from the house we are selling? How can we pay a £30k deposit when we don't physically have the cash? We are currently selling our first house so are new to this and just assumed that the deposit will be paid on completion. Or is this the case and I am just making something of nothing. I'd ask the solicitors but its sunday and this has got me thinking.

Hope someone can help.

You will have to exchange on your sale and purchase on the same day - the deposit you get on your sale is sent on to the seller's solicitors on your purchase. If the deposit from your sale is less than 10% (which is often the case) the solicitors on your purchase will usually accept whatever you are getting on your sale -

when it comes to completion - It is also therefore a good idea to complete your sale and purchase on the same day as well. The sale completes first - monies from sale are received by your solicitors - then your solicitors will forward the sale monies plus mortgage monies and any balance monies they've requested on to the solicitors acting for the sellers of your purchase.

You can (preferably if there isn't a chain) also exchange and complete on the same day. It's not ideal but it's possible.

russbeck

Hi, Thanks for the quick responses, they have set my mind at rest. There's a chain of 2 houses (ours and the one we are buying) so things should go smoothly (in an ideal world!). Our solicitor has confirmed that the contract has been recieved from the people we are buying the house from, we have a mortgage offer and we are just waiting for searches. Lets hope the ftb purchasing our house is in a good position too. I feel like things are going to go wrong. It has gone well so far and we sold the house in 4 days, surely we can't be that lucky!
Thanks again.