trading up deposit

T

tradeupper

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I am selling a house and buying another one and I would prefer to do this simultaneously but from what I can gather on other threads this does not appear to be possible these days . I will only need about a 25 to 30 % loan after selling my own house but do not have the 10% deposit at hand before the sale of the house . Is the only way to progress this sell my own house rent and then buy the new one or is there any other way . It seems a bit tortuous to have to rent a house for a time put your stuff in storage etc and then get it out again just to change house . Is there no such things as chains anymore ? Do banks lend you a deposit until the sale is complete ? thanks for any replies
 
ClubMan said:
What threads?

What do you mean by "chains"?
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A number of threads I have looked at have been about people with no deposit to hand and they invariably end with the suggestion to sell the existing house and then rent and buy .
What I am trying to find out is 2 two things.

1. What is the normal practice for buying and selling a house in todays market ? Can you complete the transactions in a synchronised manner so that you do not have to rent or be in a position where you are effectively homeless?

2. In the case of the deposit required for the binding contract I would imagine a lot of people would not have 40,000 euro available ( example 400,000 house value) until they have sold their house so is there a process where banks have a facility to issue a deposit against the equity in your existing house or do you always have to have the deposit in your account ready to go ?

By chains I meant someone is buying a house and using the sale of their house to finance this . The sale of their house is relying on the sale of their buyers so that if this buyer cannot complete then all the sales fall through. When I was buying before this was the way it went and a cash buyer or first time buyer with mortgage approval was more favoured.

I would like to move house but I do not fancy going into a rental for a while and storing everything at extra cost just so I can move .
 
I'm a solicitor and I'm dealing with this on a daily basis.

And, yes, unless you have a parent, friend, child who is happy to let you move in with them or let you move in to a house vacated by parent in nursing home or some similar situation, you won't be able to complete the sale of one house and the purchase of another in one seamless transaction. There do seem to be short term rental opportunities available.

It is safer to complete each transaction separately. Too many people got quite badly burned when they contracted to buy another house on the strength of signed contracts for their own. When that contract collapsed, they were stuck with the purchase.

mf
 
mf1 said:
I'm a solicitor and I'm dealing with this on a daily basis.

And, yes, unless you have a parent, friend, child who is happy to let you move in with them or let you move in to a house vacated by parent in nursing home or some similar situation, you won't be able to complete the sale of one house and the purchase of another in one seamless transaction. There do seem to be short term rental opportunities available.

It is safer to complete each transaction separately. Too many people got quite badly burned when they contracted to buy another house on the strength of signed contracts for their own. When that contract collapsed, they were stuck with the purchase.

mf
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Thanks for the reply and that is what I suspected . If that is the case then the deposit issue is dealt with as the money from the sale of the existing house can be used but this means that the buying of the new house can really only start when the old one has been sold

I know this is a bit like how long is a piece of string but have you any idea at the length of rental I would be looking at once I have sold my existing house ?
 
You can start both processes simultaneously.

You can go sale agreed on the purchase of your new home. But you can't sign the contract until you have exchanged contracts, or better still, actually closed and have the cash in your hand.

Brendan
 
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