Using current property equity for the deposit
Could you clarify the rules on putting a deposit on a property at exchange of contracts? Can it be taken out of the equity of your current property? My equity is in the region of £75k. I have a small amount of savings but not nearly enough to fork out, say, 10% on the property I'm interested in
Usually a 10% deposit is paid on exchange of contracts. Of course should you exchange and complete your purchase on the same day you will send over the full purchase monies on that day.
If you intend to exchange and complete on different days then a deposit will usually be required. As mentioned this is usually 10%. Should you be selling a property any deposit you receive on your sale can be used as a deposit on your purchase.
Answered by Philip Moreton, Wolstenholmes Solicitors
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