Let to Buy - Release of Funds
Posted on 1 December 2011
My let to buy mortgage has been offered but our solicitor now tells us that we need the funds to be released before exchanging contracts on our new house purchase. Is this really the case?
It is usual to pay a deposit of 10% to the seller on exchange of contracts and in a normal purchase chain the funds for this can normally be passed up the line from one buyer to another with each adding as little more money if required. As you are at the bottom of the chain, you will have to supply the whole deposit and unless you have this saved, the money will have to come from your new mortgage. It might be possible for the lender to release just the funds required for exchange, rather than the whole mortgage and you should speak to you solicitor to see if this is possible.
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