Second time buyer 10% deposit

Bonnie22

We are in the middle of selling our house , sale agreed on property we going to buy .

Solicitor is looking for 10% to go with contracts ... The bank hasn't looked for 10% and are happy for the house been sold and go with the house sale ...

We have heard from different people the 10% isn't needed but solicitor looking for it ... Is it a requirement to have 10 % when buying a 2nd for the second time and selling your house ,a friend recently sold apartment and bought a house and told solicitor to take 10 % out of the sale

_brendand_

A deposit is usually required from the buyer to exchange contracts, regardless of what the bank wants. This is to provide a guarantee should the purchaser withdraw from the sale - the seller gets to keep it.

If you don't have it then maybe the bank will provide it? I haven't been in this situation before so not sure.

4ensic15

Bonnie22 wrote: »

We are in the middle of selling our house , sale agreed on property we going to buy .

Solicitor is looking for 10% to go with contracts ... The bank hasn't looked for 10% and are happy for the house been sold and go with the house sale ...

We have heard from different people the 10% isn't needed but solicitor looking for it ... Is it a requirement to have 10 % when buying a 2nd for the second time and selling your house ,a friend recently sold apartment and bought a house and told solicitor to take 10 % out of the sale

If the sale of your own house hasn't completed, where is the solicitor going to get the 10%?

CIARAN_BOYLE

you may need to ask your bank for briding finance

catrionanic

We are in a similar situation so following this thread closely. We live in Dublin where house priced are high, and have enough savings to cover approx 7%, but not 10%. However once our house sale is completed, we will have approx 35% deposit. Surely this must happen all the time when trading up?

JimmyMW

Bonnie22 wrote: »

We are in the middle of selling our house , sale agreed on property we going to buy .

Solicitor is looking for 10% to go with contracts ... The bank hasn't looked for 10% and are happy for the house been sold and go with the house sale ...

We have heard from different people the 10% isn't needed but solicitor looking for it ... Is it a requirement to have 10 % when buying a 2nd for the second time and selling your house ,a friend recently sold apartment and bought a house and told solicitor to take 10 % out of the sale

I think you are mixing up the 10% deposit required for contracts stage when purchasing vs the 10% required by banks for to be approved for finance if a first time buyer or 20% if not a first time buyer, these things are completely separate and this is a common problem for people buying in chains. You will either have to wait for your own sale to go through or get a bridging loan of some description, before proceeding with the purchase ie returning contracts.

jaffa20

I am also in a similar situation. I have heard that the solicitor can use the 10% deposit from the buyer of your current house towards the deposit on new house. Is this true?

4ensic15

jaffa20 wrote: »

I am also in a similar situation. I have heard that the solicitor can use the 10% deposit from the buyer of your current house towards the deposit on new house. Is this true?

It would be wrong to do it. What if the 10% had to be given back to the buyer of the first house because of a title problem? The solicitor would be liable and have to pay it himself.

levi

We were just in this situation - solicitor negotiated that we pay a 5% deposit. The EA had suggested this was normal practice before we asked our solicitor. The 10k booking deposit with the estate agent counted towards this 5%. As we were trading up having bought our first house in 2014, all of our equity was in the house. Thankfully we were able to get a loan from my parents to bridge the gap so we could close on both houses on the same day. If you don’t have access to the 5%, you will have to sell your house first and buy the new house 2/3 weeks later by my understanding.

levi

jaffa20 wrote: »

I am also in a similar situation. I have heard that the solicitor can use the 10% deposit from the buyer of your current house towards the deposit on new house. Is this true?

That does not sound possible... what if it falls through, the solicitor should have access to the deposit. It’s not yours to use until the contracts are signed and the sale is closed.

jaffa20

I would have 5% so must check if that's possible. I'm only about talking about using buyers deposit after the exchange of contracts. Thought it would be fairly common thing to do.