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Original poster

Exchange Deposit

3 replies

Knownoone · 01/08/2023 00:37

Hello All,

Needed a suggestion, if I am buying a property of 200 K, with a 15 percent deposit of 30K. Due to some issues with the property the seller offers a discount of 5K on the property, do I have to now transfer a deposit of 25K to the seller on exchange and completion or would need to work with the mortgage lender on a new offer of lower sale price. I am apprehensive of going back to the lender for a new offer. Please suggest.

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Original poster
Knownoone · 01/08/2023 06:07

Bump

OP posts:
Karmatime · 01/08/2023 06:19

You need to ask your solicitor. Usually lenders have to be informed. That can be mitigated by a retention for works where the discounted sum is held back so you pay it but can reclaim it to make the necessary repairs. We did this with the sale of my house. I agreed a £5k reduction for roof works and the buyer didn’t want to officially reduce the price which would have meant going back to his mortgage lender, so my solicitor held back £5k and they have to claim it with receipts within 6 months.

Original poster
Knownoone · 01/08/2023 22:01

Karmatime · 01/08/2023 06:19

You need to ask your solicitor. Usually lenders have to be informed. That can be mitigated by a retention for works where the discounted sum is held back so you pay it but can reclaim it to make the necessary repairs. We did this with the sale of my house. I agreed a £5k reduction for roof works and the buyer didn’t want to officially reduce the price which would have meant going back to his mortgage lender, so my solicitor held back £5k and they have to claim it with receipts within 6 months.

Thanks a lot @Karmatime

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