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Deposit required on house purchase?

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Comments

  • hazyjo
    hazyjo Posts: 15,470 Forumite
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    reg091 wrote: »
    Sadly, a bit of searching suggests that I absolutely do have to pay:
    I've bought 8 properties and the deposit for 7 of them has come from up the chain. I have also had a similarly worded letter once which threw me into a panic. One quick phone call sorted it out. I now make sure I spell it out to my solicitor very early on that the deposit will be coming from up the chain.


    Stop panicking - speak with your solicitor. It's a pretty standard situation.
    2023 wins: *must start comping again!*
  • reg091
    reg091 Posts: 178 Forumite
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    Thanks all, advice and thoughts much appreciated.

    Not panicking, just feeling foolish that I didn't spot this at the beginning!

    I have just mailed solicitor for confirmation that deposit is passed up the chain, and that the most that we could expect to pay is the balance between the deposit received and the purchase price of our new property.
  • reg091
    reg091 Posts: 178 Forumite
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    oh, and just received the reply: "With regards to the deposit, this is not applicable for your transaction as the same will be used from your related sale".

    So, clearly a standard email was sent to me, causing a sleepless night and much anxiety! Not very good customer service really....
  • ChrisK....._3
    ChrisK....._3 Posts: 920 Forumite
    My experience has been that all monies in the chain exchanged on the same day - So in your case the solicitors should get the whole £389K in the day of exchange - I cannot imagine what a 10% deposit has got to do with anything - If for any reason your solicitors have not negotiated the receiving of the whoooooooooooole £389K on THE DAY of exchange then you would have to sort out a bridging loan - still does not require 10%
    If I ruled the world.......
  • jennhg88
    jennhg88 Posts: 253 Forumite
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    This is useful info, we are putting an extra 41k of equity into our next purchase, 10% of purchase just happens to be just shy of 41k so we have the cash anyway. I did wonder what would have happened if this wasn't the case!
  • saajan_12
    saajan_12 Posts: 3,621 Forumite
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    ChrisK..... wrote: »
    My experience has been that all monies in the chain exchanged on the same day - So in your case the solicitors should get the whole £389K in the day of exchange - I cannot imagine what a 10% deposit has got to do with anything - If for any reason your solicitors have not negotiated the receiving of the whoooooooooooole £389K on THE DAY of exchange then you would have to sort out a bridging loan - still does not require 10%

    Nonsense.. You (on your sols) should get the balance of the 389k on the day of COMPLETION. On exchange, it would be 10% of this (or lower if negotiated)
  • letitbe90
    letitbe90 Posts: 345 Forumite
    jennhg88 wrote: »
    This is useful info, we are putting an extra 41k of equity into our next purchase, 10% of purchase just happens to be just shy of 41k so we have the cash anyway. I did wonder what would have happened if this wasn't the case!

    I've been able to negotiate down to 5% on a few exchanges I've done, I don't think it has to be 10%, there usually is some flexibility.
  • SG27
    SG27 Posts: 2,773 Forumite
    ChrisK..... wrote: »
    My experience has been that all monies in the chain exchanged on the same day - So in your case the solicitors should get the whole £389K in the day of exchange - I cannot imagine what a 10% deposit has got to do with anything - If for any reason your solicitors have not negotiated the receiving of the whoooooooooooole £389K on THE DAY of exchange then you would have to sort out a bridging loan - still does not require 10%

    This is totally wrong. The 10% deposit is paid on exchange. The balance is paid on completion.
  • Surrey_EA
    Surrey_EA Posts: 2,042 Forumite
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    ChrisK..... wrote: »
    My experience has been that all monies in the chain exchanged on the same day - So in your case the solicitors should get the whole £389K in the day of exchange - I cannot imagine what a 10% deposit has got to do with anything - If for any reason your solicitors have not negotiated the receiving of the whoooooooooooole £389K on THE DAY of exchange then you would have to sort out a bridging loan - still does not require 10%

    I think it is clear that you do not know what you are talking about.
  • G_M
    G_M Posts: 51,977 Forumite
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    ChrisK..... wrote: »
    My experience has been that all monies in the chain exchanged on the same day ...
    Has your experience been based on Exchanging and Completing on the same day?


    If so, this makes sense.


    If not, it is rubbish.
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