Money transfers

The_Negotiator

Dear All,

I am a FTB hopefully a few weeks from completion. The vendor has no chain and I have no chain. I am a little bit in the dark on what happens from now, and won't be able to find out until Monday. I am hoping for some advice please on what is normal.

I have received my conveyancing pack with everything I need to review and sign etc. and there is one outstanding issue which is still being worked on (the next door neighbour has cut the corner off my potential house's frontage). I have been informed that the neighbour will be writing a letter to say that they are aware they do not own it etc. and the solicitor is awaiting this. The solicitor has told me that the intention is to complete on the 4th of June. I don't know whether this would require an exchange and completion on the same day.

What is normal with payments? I know I need to send the solicitor my house deposit (15%) and their fees (less fees already paid) and I can do this through same day CHAPS (£25 with HSBC) or over 3 days worth of payments via online/phone banking. I will probably use the CHAPS method. I understand that they need this money prior to exchange. Do people normally do it before hand or am I opening myself up to problems to do it (for example) on Monday? The solicitors then have to send this to the vendor ('s solicitors?) on the day of completion (which may be the same day as exhcange, or it may not be). Is it normal then to pay this fee again?

I apologise for this being slightly long winded for what is quite a simple situation made difficult by my slight ignorance and the solicitor being closed today to confirm some basic details! I am going to read through the t&cs again as I am certain it was explained within it.

Thank you in advance.

WestonDave

CHAPS is instant provided its done within banking hours (vary a bit from bank to bank but normally 9 to 3-30).

On exchange the solicitor will need to have cleared funds in order to send them on to the vendors solicitors - this is normally 10% as this is the usual amount stipulated as the deposit on exchange. In your case they will then sit on the remaining 5% and send it on with the mortgage advance on completion day (your lender will send the mortgage money to them).

If you think you are getting close to exchange bearing mind interest at the moment is virtually nothing I would be getting the 10% across as soon as possible, and in order to save a second transfer fee either sending the balance by cheque (leaving it in your account for a few more days) or by phone/online transfer, or alternatively just send the lot now.

You will pay a fee for the solicitor to send the completion funds on but the deposit on exchange is often done by cheque so you may not be charged for them doing two transfers.

It is worth sending your solicitor and email or giving them a call when you send money electronically, and where possible asking the bank to quote your reference on the payment - solicitors accounts rooms often have a lot of payments coming in and it helps to know who is sending what.

Hope that helps.

The_Negotiator

WestonDave wrote: »

CHAPS is instant provided its done within banking hours (vary a bit from bank to bank but normally 9 to 3-30).

On exchange the solicitor will need to have cleared funds in order to send them on to the vendors solicitors - this is normally 10% as this is the usual amount stipulated as the deposit on exchange. In your case they will then sit on the remaining 5% and send it on with the mortgage advance on completion day (your lender will send the mortgage money to them).

If you think you are getting close to exchange bearing mind interest at the moment is virtually nothing I would be getting the 10% across as soon as possible, and in order to save a second transfer fee either sending the balance by cheque (leaving it in your account for a few more days) or by phone/online transfer, or alternatively just send the lot now.

You will pay a fee for the solicitor to send the completion funds on but the deposit on exchange is often done by cheque so you may not be charged for them doing two transfers.

It is worth sending your solicitor and email or giving them a call when you send money electronically, and where possible asking the bank to quote your reference on the payment - solicitors accounts rooms often have a lot of payments coming in and it helps to know who is sending what.

Hope that helps.

Exceptionally useful, thank you. I think given the above, to minimise hassle but perhaps not cost, I will send through the entire 15% + fees - fees paid so far through CHAPs on Monday. You are right in assuming that the solicitor is planning on sending 10% on exchange. I get no interest on it as it is. I was just concerned that I might be taking an additional and unnecessary risk. At worst, I will then have to pay £25 for the CHAPs from my bank on Monday then an additional fee for the completion day transfer.

Thanks once again.

Eric1

The_Negotiator wrote: »

Exceptionally useful, thank you. I think given the above, to minimise hassle but perhaps not cost, I will send through the entire 15% + fees - fees paid so far through CHAPs on Monday. You are right in assuming that the solicitor is planning on sending 10% on exchange. I get no interest on it as it is. I was just concerned that I might be taking an additional and unnecessary risk.

for the fee only, you could also use a Single Immediate Payment, if both banks have joined the scheme.
http://www.natwest.com/microsites/personal/faster_payments_service/faster_payments_faq.asp
http://www.nationwide.co.uk/faster_payments/faq.htm