From: "tim" <520061495900.removethis@t-online.de>
Newsgroups: uk.finance
Subject: Re: Question about mortgage deposit(s)
Date: Mon, 11 Aug 2003 20:08:21 +0200
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"Terry Harper"  wrote in message
news:bh3lsb$s1q$1@hercules.btinternet.com...
> "Daytona"  wrote in message
> news:73n9jv0ijrgrs6lcno56cugblrgra9bson@4ax.com...
> > On Fri, 08 Aug 2003 23:29:33 GMT, "Alfi" 
> wrote:
> >
> > >Well I bought my first house 2 years ago. I got a 95% mortgage and so
> > >scraped the 5% deposit! Then I found the seller wanted the standard 10%
> > >deposit and thought 'oh feck it'.  I told my solicitor and the sellers
> > >agreed to accept 5%.
> >
> > I had the same experience. 10% appears to be a standard legal thing, but
> > everything is negotiable. I imagine most 95% purchasers get faced with the
> same
> > situation.
>
> In circles outside house purchase, the normal thing is that the Contract
> becomes "effective" on payment of the agreed initial payment.

But if this is just a 'consideration' thing then one pound would be enough.
In any case I believe that the "obligation to pay" is a consideration.

> Until that time there is no contract.

Why not?  Not all contracts contain an actual monetry item that a
'percentage of' can be exchanged when signed.

> If it was a new house being built, there might be
> a number of stage payments along the way, to reflect progress, and the final
> payment on take-over, possibly with a retention until the end of the
> guarantee period.

I think this is completely different.  The 'exchange' will take place at or
before the first payment.  The further payments will 'complete' that part of
the purchase.

> The actual percentages depend on the contract wording, as agreed between the
> parties. It could be, for example, that the initial payment secured the
> land, and so might be a considerable proportion of the contract price. After
> that there could be stage payments at completion of foundations, completion
> of the roof, completion of piped and wired services and their commissioning,
> and final completion.
> --
> Terry Harper
> http://www.terry.harper.btinternet.co.uk/
>