How much deposit can be charged for a new house?

Hi all, I'm in the process of selling and buying a house but unfortunately my house is taking a little longer to complete. I have reserved a new house (Abbey homes) and paid £500 but now they want a 10% deposit (new house is £180k). My house should complete in the next few weeks but Abbey have given me until 25th June to pay the deposit, which is extremely stressful for me because I haven't got that amount laying around. I also think 10% is a bit steep - my solicitor also agrees.

Does anyone know the going rate for deposit percentage? Also, the house hasn't even been built yet

Any advice greatly appreciated
Caz
xx

13 Comments

surely if they have all ready accepted your £500 deposit they cant ask for more can they?

Original Poster

Hi, no that was the reservation fee. I knew there would be a deposit but 10% was never mentioned.

10% doesnt seem extreme to me in the current climate

i know a first time buyer whos had to stump up 30%

Banned

explain the situation and that you complete in 2 weeks. If they wont accept that then just say the deal is off then. They will soon backtrack.

Banned

foxymissroxy;5556028

10% doesnt seem extreme to me in the current climate i know a first time … 10% doesnt seem extreme to me in the current climate i know a first time buyer whos had to stump up 30%


thats not the same as a deposit on exchange of contracts.

10% is the going norm these days. They ask you to deposit 10% and exchange contract withing first 28 days or 60 in some cases.
The number of days start from the day your solicitor receives the documentation from builder's solicitors.

You may be able to bargan for the number of days to exchange contract as these days it is difficult to get new buyers. However chances of any reduction in 10% is very less.

csiman;5556047

thats not the same as a deposit on exchange of contracts.



i do know how this house buying business works!!! but things are a changing!!! :thumbsup:

Original Poster

Hi, thanks for your replies. I have emailed Abbey homes and asked how much deposit they charge and whether they can be lenient if my sale takes longer to complete than the 28 day limit. I pretended I was a new customer, just enquiring. Here's hoping I get a good reply, lol. x

Banned

foxymissroxy;5556065

i do know how this house buying business works!!! but things are a … i do know how this house buying business works!!! but things are a changing!!! :thumbsup:


never heard of anyone having to fork out a 30% deposit ever!

30% capital sum down payment on the loan to value maybe but not a deposit.

Banned

Madeline;5556109

Hi, thanks for your replies. I have emailed Abbey homes and asked how … Hi, thanks for your replies. I have emailed Abbey homes and asked how much deposit they charge and whether they can be lenient if my sale takes longer to complete than the 28 day limit. I pretended I was a new customer, just enquiring. Here's hoping I get a good reply, lol. x


good idea. cant see a housebuilder pulling out for something like this in todays economic climate. Especially as the house isnt even built yet! :w00t:

agreed with above comments.....they are watching their backs as they know buyers are hard to come by and wanna secure u. dont get worried....u have the upper hand

magicbeans;5556145

agreed with above comments.....they are watching their backs as they know … agreed with above comments.....they are watching their backs as they know buyers are hard to come by and wanna secure u. dont get worried....u have the upper hand



Exactly, I know it's easier for us to sit here and say all this as we don't have a home at stake, but house builders nowadays are struggling so won't want to lose your business, you definitely have the upper hand so just tell them that you can't afford to pay the 10% until you have exchanged contracts - end of, they'll not want to lose you you'll see.

Supermod

There is the usual 10% which most will pay but you can also negotiate a deposit. Unfortunately they do not have to accept it.

Good luck.
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