I can't work this out

[PositivityNeeded]

I own my home outright and need to sell as my relationship is over and the sale will free up some much needed cash.

I've only ever dealt with the purchase of this house which was cash so had the 10% requested deposit. However, now all my cash is tied up in this house, how do I go about paying the 10% deposit on a future house without a mortgage lender? Do I need to take out a loan? I can't come up with over £20K as a deposit. Please could someone help?

This thread has made me laugh. Read op and thought ‘well how odd is obvious’ then realised I had forgotten about exchange and completion etc. And I sold a house just last year ffs.
Think we’re getting there with above advice - my mind is clearly in a cofuffle of confusion.

A 'bridging loan'

www.which.co.uk/money/mortgages-and-property/home-movers/bridging-loans-explained-afsnw3h37sc0

We had this. Come exchange day our buyers told us they didn’t have the deposit.

Solicitor advised that we could pull out, or go ahead. If they exchange and then don’t complete there are huge penalties, but it would be a complicated legal issue. Financially we would have done extremely well (as would our solicitor!) if they hadn’t completed, if they had money....

It would be something to discuss with your solicitor when you put an offer in.

You don't need a bridging loan! All that happens is that deposit figure comes from the agreed sale price of your house providing there is equity once any mortgage is paid off: it's a paper exercise rather than cold hard cash paid to the solicitor's client account.

Having experienced this recently we had to transfer the deposit over a few days before the sale went through, you won't be able to do that op if you don't have it.

So you will have to sell your house first before you can buy one, so hopefully you can afford to rent or stay with friends or family whilst you sort out the purchase of another house.
Unless you have a relative who can lend the deposit from until your house is sold.

You do not need to sell up in advance or get a bridging loan!

The deposit from the bottom of the chain works its way up the chain on exchange of contracts.

Technically, this can mean that the amount is smaller than 10% as it makes its way up as (usually) the house value increases as you go up the chain (obviously, not always). Most solicitors/sellers are happy with this becoming 5/6/7/8/9% as it hits their bank but sometimes not. Once we had to find an extra couple of thousand because our sellers weren't happy that our buyers' deposit didn't make 10% of our purchase price, but it's not usual.

I've bought and sold 8 times and only once had to find more than the deposit coming up the chain (other than my first house).

You don't need a bridging loan!

Only the person at the bottom of the chain has to find the deposit in cash. That is then passed up the chain. Only if someone refuses to accept lower than 10% does anyone have to top up what they are receiving from their buyer.