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Legal doctor

The legal process involved in buying a new property can be baffling. Here Colin Baum, managing director of online conveyancing service Easier2move, answers your questions.

Q. Since I applied for my mortgage no-one has mentioned my deposit to me. Who am I suppose to give it to and when will they want it? I need to know this so I can move the money from an ISA to my savings account. Also, I've heard that I need to pay a deposit of 10 per cent, even though am borrowing more 95 per cent loan to value (LTV) - am I supposed to get some money from my lender to hand over?
Susan Perkins, Chester

A. It is normal for a deposit to be paid on exchange of contracts. Although many people think 10 per cent is required that is often untrue. If you are buying and selling your solicitor can usually use your buyer's deposit in connection with your purchase so you will not have to find anything.

If you are just buying the amount of the deposit will usually depend upon the size of your mortgage (if any). If it is less than 90 per cent then you will usually need to find 10 per cent but if you are borrowing more than this your solicitor can often persuade the seller to accept whatever amount you are putting in. If you are taking a 100 per cent mortgage they may even let you put in just the amount of the solicitor's costs and disbursements.

Q. I'm keen to exchange contracts as quickly as possible so I don't get gazumped. Is it possible to exchange before I receive my mortgage offer?
P Giles, by e-mail

A. If for any reason the mortgage offer is declined or delayed or it contains any conditions that you cannot comply with the money may not be available when required so it would be extremely dangerous to exchange contracts without it and any competent solicitor would strongly advise you not to do so.

Q. I am set to complete on a flat next month so I'm trying to work out the logistics of the move. It's probably a silly question, but what is supposed to happen with the keys?
Ian Shepherd, London

A. The keys are usually left with the estate agent (if one is being used) and the buyer collects them once the money has been paid over on the day of completion.
If there are no estate agents (or this is not convenient) then the seller will hand them direct to the buyer.
Either way it is important that arrangements are made in advance to prevent the possibility of you having to wait outside with the removal van!

Although your solicitor will always try to ensure that everything is finalised as early as possible on the day of completion - and usually this is dealt with by mid-day - there can sometimes be a delay if, for example, your solicitor is still waiting for the mortgage moneys to arrive or there is a particularly long chain. If this happens please don't panic or become upset because your solicitor will invariably resolve the problem by early afternoon - if not sooner !

A. If you are just selling or there is a surplus due back to you after the completion of your sale and purchase your solicitor will always try to send this to you on the day of completion or, at the very latest on the next working day.
Payment is usually made by cheque but for larger amounts your solicitor can transfer the money direct to your bank if you request this in advance and provide them with your account details. There may be an additional bank transfer fee for this.