Deposit- bridging the gap

Hi folks,
We are looking at buying new build for €315k (mortgage €240k and deposit 75k). We have savings of approx 35k and are then hoping to have equity of approx €75k following the sale of my house.
The 35k is mostly earmarked to pay off car loan of 15k (a condtion of our mortgage approval) and then 10k for solicitors/estate agents/snags etc.

The new build deposits are as follows:
Initial 5k booking deposit
10% on signing of contracts
Balance on completion

My query is- when it comes to the 10% deposit, we won't have those funds until my house sale goes through. What are our options to bridge the gap?
Apologies if it's a silly question but new builds and selling is all very new to me! Thank you

You wont have to pay ea and solicitor fees until you house is sold. You wont draw down your new mortgage until your house is sold.

Why cant you pay the 24k deposit from your 35k savings, then pay off your car loan and other expenses from the 75k?

Yeah, do what JohnJay suggested. Use your current funds as deposit and pay off car loan when you get the funds from sale of property. The bank will just want to see a closed statement for the loan account, they don't care when the loan is finished.


Steven
www.bluewaterfp.ie

What John Jay says, seems to work



Brendan

Hi Sullivk
Just wondering have you accepted offer on your house is the sale proceeding? We are looking to buy a new build but have been told we can't pay booking deposit until contracts are exchanged on existing house. We would have the deposit from savings so aren't waiting on cash from sale. Just wondering is this standard practice?

Hello, I would be curious on this as well. We are hoping to do something similar as Sunshine26 has outlined - we have the booking deposit €6k and then 10% almost saved. We thought we could pay this deposit, house takes 5/6 months for completion of build. We sell our existing property in the interim. We are opting for a tracker mover mortgage so selling and then waiting a couple of months is not an option. Old mortgage needs to be cleared and new one drawn down within the same calendar month. I am a little confused by the whole process.

Thanks for all your helpful replies. It didn't occur to me that payment of solicitor/EA fees would be post sale, so that's good to confirm.

@Sunshine26 @laura28
I was told by my EA that we should be signing contracts to both buy and sell at pretty much the same time. If our new build is ready before we sell our place then we will have to try push back the signing of contracts and vice versa.

If you sign contracts to sell your current house but then something falls through on the purchase of the new build, where will that leave you?
I'm not familiar with the process as I've never had to sell and buy simultaneously, it's proving quiet stressful!
We have yet to put down our booking deposit, estate agent mentioned the house we have in mind will be ready to snag very soon but builder is good for giving 8-10 weeks if he knows you're in a chain

If you sign contracts on the house you are selling, and have agreed a leaving date, well tough. You'll have to move out and rent somewhere in the meantime. It depends on the people moving in...can they wait another 2, 4, or 6 weeks or longer?
If they are not in any hurry (which would be odd) you could try to 'rent' your old house from them. I have heard of that working but usually people buying a house want to get in ASAP. You can throw a couple of delays in towards the end but you still have to be reasonable to your buyers.
The chances of a new build going over expected time is fairly high to be honest.
The days of selling one house and moving into the new house the same day are pretty much gone, unless a lot of planets align in your favour. So I would be thinking of Plan B, where you have to move out but have several weeks before you move into the new place.