How do you calculate the booking deposit?

P

Patch

Registered User
Messages
30
Excuse my ignorance. Im a FTB about to close the deal on my first house. Can anyone tell me if there is a formula to calculate the booking deposit? ie is it 5% of value of house for example?
Trying to sort out my finances here.
Thanks
 
The booking deposit is usually set by the EA and is usually in the region of €5,000, the contract deposit is usually 10% but in the current market, some vendors may be willing to waive this to 5%.
 
Again excuse the ignorance but is there a difference between the booking deposit & the contract deposit?
Also will i be able to get the 5k booking deposit back from the lender after I have received the mortgage? (have a 100% mortgage)

Thanks for any help!!
 
The booking deposit secures the property for a number of weeks (usually three) to give you time to get finance and contracts sorted out. The booking deposit is deducted from the purchase price.

The contract deposit is paid at the same time that the contracts are signed. It's usually 10% but usually the booking deposit is taken out of this amount. (So contract deposit is usually 10% - booking deposit).

If you have a 100% mortgage with no savings to cover the contract deposit, you may need to get stage payments for your mortgage.

The other 90% isn't due until completion, and depending on the house in question, there could be a few months between exchange of contracts and completion.
 
Thanks but its a second hand house and the owners have built new house so they are eager to move. cant imagine there'll be any delay handing over once the contracts are signed & mortgage is in place. Again might just be naive here.
 
There are always delays as your solicitor verifies the title of the property, etc. Four months would be considered a quick turnaround (if there are no problems). It's not going to happen in a matter of weeks, in all probability.
 
In my case, booking deposit was about 1% payable to the EA, offset against the purchase price and fully refundable on the sale falling through for any reason prior to signing contracts.
A closing date has been set within 7 weeks of going sale agreed and the seller has waived the contract deposit (Generally 10% less booking deposit) as the full balance will be due shortly afterwards
 
You must log in or register to reply here.
Back
Top