Simultaneous Exchange & Completion??

claireac

I'm hating this situation more and more! It's very worrying. Maybe we should just stay with parents for a couple of weeks!

They have a lot of equity in their present property, but not any "cash" to put down as a deposit - hence why I've been told he has 100% mortgage I'm presuming.

Thank you for your advice - it's much appreciated!

Richard_Webster

When you exchange there is a binding committment on the buyer to pay 10%of the price. They don't have to pay it on exchange but are in breach of contract and liable for the amount if they do not complete. Today 2:56 PM

That's right, but remember a binding commitment is all very well - it enables you to sue the person for the money they have not yet paid. If they have no money and/or have disappeared then you may have a job getting the money. I'd want a figure on exchange sufficient to meet your costs if things went pear shaped and to show they are serious and to deter them from doing a flit. £2,000?

claireac

I think I'm fairly safe on them not disappearing to be honest!

They work with and have known some friends of ours for years.

I would have used a different solicitor if they hadn't named them first as theirs. Purely because this particular solicitor is my family solicitor and has done lots of work for both my parents and myself.

The ea has spoken to this solicitor, who has asked that I be reassured that these people are longstanding customers and are very reliable.

I know where they live too :rotfl: !!!!

Not sure that makes sense, but difficult without putting names.

Richard_Webster

That's fair enough - it is all part of your own risk assessment!

LandyAndy

claireac wrote: »

I think I'm fairly safe on them not disappearing to be honest!

They work with and have known some friends of ours for years.

I would have used a different solicitor if they hadn't named them first as theirs. Purely because this particular solicitor is my family solicitor and has done lots of work for both my parents and myself.

The ea has spoken to this solicitor, who has asked that I be reassured that these people are longstanding customers and are very reliable.

I know where they live too :rotfl: !!!!

Not sure that makes sense, but difficult without putting names.

It all adds comfort for you but at present even the most 'upstanding' of buyers could be victim to the whim of the mortgage lender, particularly on a high LTV mortgage.

LandyAndy

I think the vast majority of these types of arrangements go through with little or no difficulty. When you ask a question on these forums you have to expect that what you hear is 'Here are the things which could go wrong'. Its a case of knowing the general pitfalls and applying them to your circumstances with a generous coat of common sense.

Good luck.

claireac

Yes I understand about the whims of mortgage lenders, being the victim of such a "whim" on Wednesday morning. Hence why we have decided not to take them up on their offer of 60%LTV, when we applied for 80%LTV, and are stashing our cash and renting for a while. Sitting back and seeing what happens.

I think it's a risk, but I shall sit down with the other half and talk it through. We have said we will take the rental property, but do not have to pay anything until Monday. Then it's the admin fee only.

Thanks for the advice once again. All opinions are much appreciated and welcomed.

Thanks :beer: