one of the questions i'm regularly asked by young people especially somebody who's
buying their property for the first time or buying a property for the first time
is about the money when do they make the payments and so on and so forth
so when you go sale agreed with a property be it a new or a second hand you're going to pay
a booking deposit the booking deposit would be typically three five grand anything between two
and a half thousand and ten thousand depending on the value of the house but typically around
about five thousand that's the booking deposit it's fully refundable once the booking deposit
is paid then the vendor solicitor will issue contracts to your solicitor the purchaser's
solicitor and your solicitor then will review the contracts review the title documents
and assuming that you've got finance arranged will then get you in within perhaps fortnight
or three weeks depending on how quickly you get finance arranged and get you in then to sign
the contracts and sign the contract and the loan documents rather so at that point then you must
pay the contract deposit and the contract deposits 10 of the purchase price but you can take off
the contract deposits the booking deposit that you paid so just to give you a simple example
let's say you're buying a house for three hundred thousand the contract deposit then it's gonna be
ten percent of that ten percent of three hundred thousand obviously thirty grand you take off five
grand that you paid as a booking deposit so you're going to pay 25 grand then with the contract
that's what's expected in relation to the second-hand property then
you will eventually move towards completion and your solicitor and the other solicitor
will uh prepare for that and obviously you'll have to ensure that everything is in place
to draw down your loan offer your loan funds and when there is a closing date then and the property
transaction is ready to complete that will be the point at which
you will have to pay the balance of the purchase price stamp duty your solicitor's fees property
registration authority fees miscellaneous fees for legal searches uh for commissioner for votes
and that's really the all of us but you only need to do that on completion for
completion and obviously the loan that you're getting will be drawn down then by your solicitor
with a view to completing and typically completion will take place four to five weeks
after there's binding contracts in place so typically four five six weeks after
you have uh signed contracts and you'd probably sign contacts two weeks
perhaps after you've gone sale agreed that's the sort of time scale you're looking at for a
secondhand property and that's the sort of pattern or schedule of payments that you're going to make
so ranging from as i say the first instance a booking deposit to eventually paying the
entire balance of the purchase funds for the property having drawn down the money from the bank
and obviously you're going to put your solicitor in funds for the various fees that i've set out
the professional endeavor or the professional legal fee stamp duty pa fees and so on
with the new property slightly different not much different but it's slightly different
but a new property you're going to pay a booking deposit then when it
comes to paying the contract deposit it may be possible to if you are getting the help to buy
grant or aid or subsidy or whatever you call it if you're getting that then it may be possible
to actually use that as part of your deposit so may well be the case that if there's 30 grand
jew or 35 grand jew with the contract on signing the contract as a contact deposit it's possible
that up to 30 grand of it can be taken care of by the help to buy
amount if you're if you're eligible for that much that's the maximum i think so most builders will
allow you to use to help to buy amount to pay the contract deposit so at the outset you'll be paying
bank or booking deposit of five grand or ten grand or whatever and then the balance can come
from your hub to buy grant and then you're going to need all the other money your loan
and your stamp duty your professional legal fee your property registration authority fees
and the other outlays legal searches commission of roads miscellaneous and so on for completion
but clearly completion with a new house is going to take place probably probably much later than
our second hand because the likelihood is that new house may be in the course of construction and
depending then at what point you actually purchase the property or enter into the bargain as it were
to purchase the property and depending on what stage it is in terms of the construction phase
and the construction schedule the new property may not complete the purchase may not complete
until there's a bird there other two worlds behind me there you might see them um the new
property may not be ready for completion for six months nine months or whatever
so um that's the time schedule there now you could buy a new property that's practically finished
and practically ready to go if that's the case then the time schedule is going to resemble more
closely the time schedule for a second hand but by and large when you're buying a new property you're
not going to be entering into an arrangement whereby you might be paying a booking deposit
you might be paying a contract deposit and then you could be waiting six months nine months indeed
twelve months for completion of the property for completion of construction anyway hope you find
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