5% on exchange (instead of 10% due to builder incentive) - and chaps question

Matt83UK_2

If I request a CHAPs transfer from my account to my solicitor tonight, will he then be able to request a CHAP from their account in the afternoon to the builder for exchange of contracts by end of tomorrow.

In addition, 5% deposit instead of the usual 10% on exchange of contract, because they are offering a 5% deposit paid incentive, will the builder go for this? or will they be extremely fussy.

Jo_anne_2

I was told that the CHAPs transfer has to be requested by 12noon to get to their account on the same day, so unless your solicitor gets the funds early morning it seems unlikely that they will be able to transfer it to the builder tomorrow.

I don't really understand your second point though, but your solicitor should know. Probably not the same thing but when we bought our new build house, the builder gave us a 5% discount but we still had to pay 10% of the balance on exchange.

Matt83UK_2

So I could probably get the first leg sorted, my account to solicitors.

Does the solicitor actually need to CHAP it that day, from what I remember he can exchange the contracts over the phone following a law society protocol or something. True I should ask him, but it's after hours and essentially he's just waiting for the money and I want to exchange asap and have a stress free few weeks (or less than).

Doozergirl

The cut off for my bank is 3.30pm. We transferred after this time a couple of weeks ago and it still hit the solicitors early enough for them to transfer it on same day. If you send tonight it won't be guaranteed until end of business tomorrow, but it's worth a go.

I don't know either on your 5% thing, but if the incentive is 5% deposit paid, rather than 5% discount, I would assume your paying a 5% deposit would be fine.

Matt83UK_2

Egg's cut off is 2pm, however they've majorly screwed things up and transferred the amount twice over, grr... They have now agreed to refund both CHAPs transfer fees, and I'll bring up the interest and mobile telephone charges once it's all sorted. Hopefully I'll be able to exchange by Wednesday and have a stress free two weeks (every day I've been chasing ppl up and stressing and I'm a FTB, I have empathy with those that never move in their lives ever again now).

terrierlady

if its 5%deposit paid on your reservation form you will exchange on that, many FTByrs do this because they are taking out a 95% mortgage.