Manage Cash flow - selling and buying

House2020

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We are selling our family home in order to purchase a larger home. We are sale agreed on our current home and hoping to have an offer accepted on our new home (2nd hand).

We have about 15k in cash but I am trying to work out now how we manage payment of deposits etc for the purchase when most of the deposit for our new home is tied up in equity for the house we are selling.

Can anyone advise on the process/optimum timings here. I know we’ll have to pay a deposit of about 5 to 10k as the initial deposit to the new house estate agent.

My question is - when do we have to pay the remainder of the deposit (about 90k) and how do we manage the drawdown of the new mortgage, proof of deposit etc while hopefully not leaving too much time between the sale of our current house and purchase of the new house.

How does this work in practice?

Are there any other key costs that have to be paid upfront - I have factored in the survey fee.
 
Will your bank allow you to draw down on your new mortgage before the existing mortgage is settled ?
 
Do you have alternative accommodation you can use between the selling of your current home and the purchase of the new property?

A lot of the timing will be down to the vendors of the new property. Do they have other offers? Are they willing to wait for some time for yours to close before really getting into the sale?

I'm not sure how common it is, but an agent told me recently that they would no longer be accepting solicitors' letters as proof of funds prior to accepting an offer. This was while viewing a house where a previously agreed sale fell through when it turned out the prospective purchaser was unable to obtain the necessary finance despite furnishing a solicitor's letter confirming they had the means to complete.

If you want a short window between closing the sale of your current home and the new purchase, you'll need to gain the trust of the vendor's agent, and put a lot of effort into ensuring your sale proceeds without issues and have everything lined up for the new purchase.
 
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