We are hoping to exchange next week on our house sale and purchase, and complete in mid-October. Chain is 4 parties, we're 2nd from the top with 2 below us.
We have just had an email from our solicitor saying "you can transfer the £24k odd that we need from you as per the draft accounts provided". Um... This is first we’ve heard of ANY money being needed from us on exchange. We hadn't received the draft accounts yet and didn't know this. We don’t have enough in the way of savings (10k in the bank), we just have our house sale, equity, etc.
We're selling for 305k, buying for 395k. Obtained a mortgage with 85% LTV.
In a total panic right now - just eaten my own bodyweight in pasta while in shock from reading the amount. We simply don't have the money and weren't told that we'd need to save up more/fork up cash on exchange. We'd ask family for money, but it's a lot of cash and my SIL with mental health problems has gone missing this week, everyone is rightly tied up with that and we're all worried. I'd hate to ask for money from family at a time like this.
I thought deposits usually just worked themselves up the chain on exchange? In that case, is it that the deposit from the chain isn't enough?
We (perhaps wrongly) were thinking all of the proceeds from our house sale + buyer's deposit would be the deposit for our purchase.
I've emailed the solicitor back asking for clarification but will be calling him in the morning to discuss. Before I ask him any stupid questions, could someone please explain how this has been worked out? Is there anything we can do at this point?
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Buying and selling - is our exchange deposit not enough? In a panic!
rosemarycait96 · 22/09/2022 19:44
snowballer · 22/09/2022 20:18
Deposit passes up. It's usually only the bottom of the chain that needs to have the actual cash. In most cases everyone will be fine with less than 10%. Don't panic
rosemarycait96 · 22/09/2022 20:08
Thanks all. Trying to stay calm but this was unexpected!
Solicitor didn't clarify exactly what this money was, I'm assuming it's the exchange deposit, didn't think it could be anything else to be honest.
I knew there would be an exchange deposit, we just assumed our buyer's deposit would be used for that and weren't lead to believe otherwise. We'd accounted for stamp duty etc when doing our calculations on our sale and by our workings out, we should have a surplus of funds, not be 24k short. Hence our confusion.
Suppose I'll just have to ring the solicitor and find out in the morning...
rosemarycait96 · 22/09/2022 19:44
We are hoping to exchange next week on our house sale and purchase, and complete in mid-October. Chain is 4 parties, we're 2nd from the top with 2 below us.
We have just had an email from our solicitor saying "you can transfer the £24k odd that we need from you as per the draft accounts provided". Um... This is first we’ve heard of ANY money being needed from us on exchange. We hadn't received the draft accounts yet and didn't know this. We don’t have enough in the way of savings (10k in the bank), we just have our house sale, equity, etc.
We're selling for 305k, buying for 395k. Obtained a mortgage with 85% LTV.
In a total panic right now - just eaten my own bodyweight in pasta while in shock from reading the amount. We simply don't have the money and weren't told that we'd need to save up more/fork up cash on exchange. We'd ask family for money, but it's a lot of cash and my SIL with mental health problems has gone missing this week, everyone is rightly tied up with that and we're all worried. I'd hate to ask for money from family at a time like this.
I thought deposits usually just worked themselves up the chain on exchange? In that case, is it that the deposit from the chain isn't enough?
We (perhaps wrongly) were thinking all of the proceeds from our house sale + buyer's deposit would be the deposit for our purchase.
I've emailed the solicitor back asking for clarification but will be calling him in the morning to discuss. Before I ask him any stupid questions, could someone please explain how this has been worked out? Is there anything we can do at this point?
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