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Our buyers can only put down 5% deposit on exchange instead of the usual 10%

6 replies

VolumeOfACone · 22/11/2012 15:44

I don't know if we ought to be worrying about this? We'd have to get the owners of our new place to agree to a lower deposit, as we were planning to use ours to pay theirs, if you see what I mean, but in general, do you think we ought to be wary of accepting anyway? Does it mean our buyers won't be able to get funds together when it comes to completion?
I don't know how unusual this is.

Anybody have any advice?

OP posts:
lalalonglegs · 22/11/2012 17:07

Your solicitor should have checked that they have funding in place - they maybe have a 95% mortgage? It depends on the cost of your property but I don't think it's worth worrying about. If you don't have enough to pay full deposit, see if your mortgage company will release some of the funds to cover it.

FishfingersAreOK · 22/11/2012 18:10

I wouldn't worry too much either - we did not have the full 10% actual cash to put down either - we did not give our solicitor any deposit money in fact - it was the deposit from our buyers went to pay our vendors - and that was only about 8%. But we would have be liable for the 10% had we pulled out after exchange. So we would have had to find the difference. Speak to your solicitor - I am sure they will reassure you

VolumeOfACone · 22/11/2012 19:30

Oh that's reassuring that you both don't seem to think it'll be a problem, we got the letter today and I was worried! It is stressful selling and buying!

OP posts:
sparkle9 · 22/11/2012 20:15

This reply has been deleted

Message withdrawn at poster's request.

Mintyy · 22/11/2012 20:19

I don't understand this.

If you are in a chain (as we will be in our next house move) where would dh and I be expected to find, say, £60,000 from before the sale of our own property completes?

Durab · 22/11/2012 20:41

Yes, we had this when we we sold our last house. Buyers were taking a 95% mortgage and could only pay 5% deposit. Our solicitor had checked that finance was in place for completion, so there was no worry there.

The only issue is if the completion doesn't go through, at the fault of your buyer. In that case, you retain their deposit, but the solicitor will only be holding 5%, not 10%. Your contract should be drawn up so that the buyer will still have to pay you the full 10% in that circumstance, but of course if they haven't got it, it will be very hard work to actually get it.

If you are unable to complete your chain as a result, you would also forfeit your deposit, which may be more than the 5% you have "gained" from your (ex) buyer iyswim

However, it's very unusual for properties not to complete after exchange, unless it was a conditional exchange. Take your solicitor's advice.

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