Normally the brokerage of the listing agent holds the deposit in trust until the closing. The deposit will then be given to the lawyers office if there is a surplus vs. the amount due them. In most cases the deposit is not as much as the amount due the listing agent so money does not go the the lawyer anymore but more funds are given to the listing agent at closing. I am not sure what happens to the deposit when a potential buyer backs out.

This is what you call bridge financing to allow for the purchase of the new house. Unless your old house is selling or closing at a specific date, they will not fund the new house. In the meantime you would have 2 mortgages, 1 for the new property - with interest only payments (bridge) and one for the old - full P I. It is always prudent to sell first before buying as this creates additional cost. You can also rent one of the properties if you plan to keep it longer.

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I'm selling my house and as part of the sale i've agreed to pay the 5% deposit for the buyer. i would have thought that the deposit would have been based on the full asking price but the estate agent seems to think it would be based on 95% of the asking price as that's what the mortgage is for. but if you calculate the deposit on the 95% mortgage and add it to the amount the mortgage is for, it doesn't add up to the full asking price. i don't want to be short changed here, so can anyone confirm this?

Depends on the type of loan the buyer has. If they are doing 100% finanicing, then you would be contributing 5%, making their loan of 100% financing void, so.. huh? They would then be financing 95%. Why are you willing to do that? Might as well just deduct 5% from the accepted purchase price instead of go through all that! I hope you didn't accept to pay some of their closing costs, too...along with Realtor commissions, my gosh. Better have a good Realtor representing you.

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I have less of a deposit, but i also earn a lot less. we will be paying the same towards the mortgage. he thinks he should get more on top of his original deposit if we sell, i don't agree i don't think i should get more back. i agree we should both get our original deposits back and then split the profit equally. what if i pay for a bathroom or kitchen, how is that taken into accout? he is putting down 10k more than me, it's not a lot

You should make up a contract specifying all the details so there is no dispute if there is a profit. I would have keep a list of all funds paid, principal, interest, repairs, insurance, taxes, who paid what, and go by that. Who gets the tax credits on the interest paid? It is not a good idea to buy a house with a boyfriend, but if you do, have a lawyer draw up a contract for you.

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In the uk. and if so who do you recommend? i have no mortgage on my current property so it can all go as a deposit to my next house. i don't want to wait months trying to sell my current property if i see a new house i really want. any companies that offer 85% or more of its value? or is it all a big con?

I think you should at least enlist the help of an agent to set the price. Then you will know how big of rip off the company is. They are normally rip offs, if not outright hoaxes. Be very careful.

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Should i a.) spend money making it more presentable, which i have already been doing (ie new windows, bathroom, etc) or b.) don't do anything else to improve the house, put the money into the mortgage so i end up with a bigger deposit for a new place i personally think i should improve a little more so there's more likely chance of a sale, but does anyone have any advice from past experience?

as a homeowner, you knows it's always about location. check out properties for sale in your neighborhood with similar specs & asking price so you can gauge whether you need to prettify your place to be able to sell it ahead of the others in the market . good luck

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I am selling a property, and i'm about the exchange contracts. i am interested in another property costing about a third of the price of the house i'm selling. i don't have any cash for a deposit. are deposits always required ? what's the best option if the sellers want a deposit ? gibsonessgee : i've just spoken to my bank and this looks to be the best option. part of the problem is not knowing what % deposit would be needed : 5%, 10%, 20% ... ? i've no idea what the average is. simonc : the contract will have a generous get-out time written in. thanks for bringing up the point. simonc : excellent point that i might be able to use my purchaser's deposit towards a deposit on the other property. i'd hoped this would be possible. this is certainly a line to pursue. thanks a million.

Deposits are almost always required, as a show of good faith and to ensure the buyer completes the purchase. The standard deposit is 10%, but it is possible to negotiate a different figure. If you are selling you will be receiving a deposit from your buyers, and in most cases this will be available for you to use as a deposit on a related purchase. If you need this to happen your solicitor will make sure your contract allows it, so ask him. Btw, if you are not ready to exchange contracts on a purchase, why are you considering exchanging on your sale? You could be forced to complete before you have anywhere to go to, leaving you homeless.

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My mother who lives in india has come into a sum of money by selling my grandmothers house. since my parents have their own home, they would like to give/ lend us this money to help us make a start on buying a house in london (where my husband and i live). the problem is according to indian tax rules, they will have to pay 50% of the amount in capital gains tax if they do this. however, if they use the money to buy another house, they don't have to pay tax. it does not matter whether they buy a house in india or in the uk but the money has to be invested in property for them to avoid the tax. my question is, if we use the money as a deposit for a house in the uk, is it possible to take out a morgage in my husband and my names but have house owners listed as me, my husband, and my mother? in other words, my mother should not be responsible for paying off the mortgage but she should be listed as one of the owners of the house so that she doesn't have tax problems. is this allowed in the uk? i hope i've explained this clearly. please ask if more details are needed. thank you!

This sort of arrangement IS possible. Your mother (in India or anywhere) can be listed as one of the persons with an interest in the property, along with you and your husband. HOWEVER, there MAY be problems if ALL the deposit is provided by your mother and she is not living in the house. This is because the mortgage company will wish to protect themselves against you ending up in a situation where your house becomes worth less than you paid for it(unlikely in the current market, admittedly, but possible). IF the housing market collapsed and they were left with a mortgage arrears worth more than the original loan they would recover the shortfall out of your deposit. If all that deposit was written into the house ownership documents as belonging to your mother, then they may run into problems. It IS possible but you will need legal advice.

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I would like to move house (not done it before as this was first home), but all my money is tied up in my existing home (which i will be selling). my question is, as i don't have enough money for the 10% deposit at exchange, how can this be sorted without a bridging loan? does everyone in the chain exchange on the same day, so the money comes from who buys my house??

You are correct in that you can us the money your buyer has put down to exchange to use as your exchange monies although you will need permission for this from your acting solicitor. Failing this you can always exchange and complete on the same day meaning you do not have to find the monies upfront at all. Disclaimer: The answers above are for guidance only and should not be acted upon without you receiving professional mortgage advice relevant to your circumstances . To find an independent mortgage adviser please go to http://www.unbiased.co.uk

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Basically we want to put down a £50,000 deposit down on a £100,000 flat in my name... is it possible that my nan releases £50,000 equity on her £250,000 house that is paid for to put down a deposit in my name on a flat worth £100,000? my credit is ok & i earn £20,000 a year... how does it work? my understanding is that it's possible, and once my nan & grandad die, & my mum inherits the house & she sells it she would get £200,000... i have heard the downside of it is the interest on the equity they have taken out but i don't understand how this works... what's the interest & how is it calculated if say my nan & grandad die in 5 years time? please can somebody help give me an understanding of how this works with the pro's & cons included? thanks

Normal Loans "once my nan & grandad die, & my mum inherits the house &; she sells it she would get £200,000." Actually, the note has to be satisfied BEFORE you mother gets anything. This means she either has to pay the note off or sell the house (as executor) and THEN distribute the remaing monies. " have heard the downside of it is the interest on the equity they have taken out" "what's the interest " As with any loan, you have to make payments monthly. This includes interest (mostly interest at the beginning). Also, many HELOC loans (Home Equity Line of Credit) are variable which means when the interest rates go up, so do your payments. You cannot delay the interest payments "until the grandparents die". Reverse mortgages I am not familiar with this, but I do know the property owner (your gran) does not get it all at once. They would receive monthly payments like the mortgage company would get on a standard mortgage.