My moving out but not moving in yet, how will the money transfer work?

fcorry2008

We'll I called my solicitor this morning to ask about how the money will be transferred on completion but this has confused me further.

Basically my buyers are moving into my current home next Thursday but my new build home will not be ready by this time, so we are having to move into temporary accommodation and take out storage for a few weeks.

Basically:

My buyers have already paid their deposit to their solicitor a week ago for exchange of contracts (they are first time buyers).

My deposit 30% and fees will be covered in the equity of my home and their will be some money left over to go into my bank about 4k which I'll use some to furnish and decorate the new house with.

Can anyone explain exactly how the transfer of funds will work with me not moving out on the same day my buyers move in?

Scully38

fcorry2008 wrote: »

We'll I called my solicitor this morning to ask about how the money will be transferred on completion but this has confused me further.

Basically my buyers are moving into my current home next Thursday but my new build home will not be ready by this time, so we are having to move into temporary accommodation and take out storage for a few weeks.

Basically:

My buyers have already paid their deposit to their solicitor a week ago for exchange of contracts (they are first time buyers).

My deposit 30% and fees will be covered in the equity of my home and their will be some money left over to go into my bank about 4k which I'll use some to furnish and decorate the new house with.

Can anyone explain exactly how the transfer of funds will work with me not moving out on the same day my buyers move in?

You have to move out on day of completion. Once the money has transfered from their solicitors to yours, you no longer own the property, they do. So you have absolutely no right to stay in the property. Why did you agree on a completion date if your property wasn't ready?

If your new home is not ready on day of completion then you'll either have to rent/stay somewhere else until your new property is ready, but you can't remain in the property you're selling once funds have been transferred from your buyers.

Your money that you get from the proceeds of your sale either stays with the solicitor or in your bank (you'll have agreed what this will be with your solicitor), then the funds will be transferred from your bank/solicitor to your new home on exchange of contracts (percentage) and then the remaining on day of completion.

chris_m

Scully38 wrote: »

You have to move out on day of completion. Once the money has transfered from their solicitors to yours, you no longer own the property, they do. So you have absolutely no right to stay in the property. Why did you agree on a completion date if your property wasn't ready?

If your new home is not ready on day of completion then you'll either have to rent/stay somewhere else until your new property is ready, but you can't remain in the property you're selling once funds have been transferred from your buyers.

That wasn't the issue, the OP already said they will be going into temp accommodation, although their last sentence was a tad confusing as it appeared to imply otherwise.

Scully38

chris_m wrote: »

That wasn't the issue, the OP already said they will be going into temp accommodation, although their last sentence was a tad confusing as it appeared to imply otherwise.

I know, that's what confused me to. I know about them moving into temp accomm. but that last bit suggested they weren't going on the day of completion and their buyers were moving in with them there.

chris_m

Scully38 wrote: »

I know, that's what confused me to. I know about them moving into temp accomm. but that last bit suggested they weren't going on the day of completion and their buyers were moving in with them there.

I suspect (hope) they put "not moving out on the same day" when they meant "not moving in". That would make sense, to me at least.

shar46y

We had a 3 week interval between sale and purchase.

What happens is, you agree with your solicitor whether they should hang on to the money from the sale, or send it to your bank. If they send it to your bank, you will have to send back the relevant amount to exchange/complete on your purchase when the time comes for that.

We decided this was too much of a pain in the *** so just told our solicitor to hang on to all the required money.

Jeffrey_Shaw

Any V [vendor] who contracts to sell with vacant possession is obliged to vacate on or before completion.
P [purchaser] need not move in, true, but V cannot stay-on unless (exceptionally) P agrees this on an extra-contractual basis.

G_M

I too found the question a bit confused.

However, OP, think of it as two totally separate transactions, made easier by having a solicitor dealing with both.

1) your sale. On day of Completion, your buyer pays your solicitor for your home. YOU MOVE OUT, and your buyer moves in. You now have lots of money (unless it all goes to a bank to pay off your current mortgage?), which either your solicitor can 'hold' for you, or he can give it to you (for a short time).

2) Your purchase. A few weeks later you pay the builder of your new home. Your solicitor does this, so he will need back the right amount of money from you (unless he 'held' it for you) plus whatever you are borrowing if you have a new mortgage. Once you (sorry - your solicitor) has paid the builder, the home is yours and you move in.

The only additional complication is that in each case a % of the purchase price (usually 10% but maybe less) has to be paid in advance (at 'Exchange of Contracts'). So you get this even earlier from your buyer, and have to pay it to your builder in advance too.

MJS2011

I was in the same position and my solicitor kept the funds for the period in between buying and selling. They said they'd have to charge a bank transfer fee to send me the money, and seeing as I'd be giving it back to them a few weeks later there was little point in spending £30 on a bank transfer fee when it could be avoided.

Even if the solicitor keeps hold of your funds, they'll send a completion statement to you when you sell showing how much is being held on account for your purchase - it gave me peace of mind seeing on paper how much there was.

Jeffrey_Shaw

Plus the funds earn interest, albeit at the derisory rates payable by Banks!

mrssjs

We've just done the same but requested a cheque so to avoid £35 TT fee. We'll hold on to the money until our new house is ready and then transfer to the new mortgage.