Transferring deposit / CHAPS

Cara79

Hi

Does this sound right?

Bit annoyed. We are exchanging this week all being well, complete next Friday 14th.

Now got to provide solicitor with bank statements which is fine to prove our deposit etc.

But our deposit is in 6 accounts across 4 banks. I had thought we could consolidate it all to one a/c and make one CHAPS payment.

But the sols are saying we need to send from each bank a/c as the funds transfer need to have been in that a/c for 30 days.

I wished they'd told us 2 months ago. So now we need to CHAPs from each a/c and incur a fee each time.


However I have just thought - I'll obviously ask the sol tomorrow but our buyer will pay a 10% deposit which gets passed up the chain on exchange doesn't it? Do we need to top that deposit up to make the 10% of OUR purchase price (as its obv more than our buyer is buying ours for).

If not an the original 10% is passed up the chain, then if we are completing next Friday - I could do Internet banking from each bank account and BACS it over myself. It takes 3 working days to clear which should be fine if I do weds/thurs this week?

I hope that makes sense
Thanks in advance
Cara

agrinnall

Never heard of the 30 day rule but it may be a money laundering thing.

Definitely check with the solicitor how much you have to transfer, I'm pretty surprised that hasn't been made clear already.

You are living very much in the past with 3 day BACS transfers, which disappeared for retail customers at the end of 2011. Now all transfers up the the sending bank's transfer limit are done by Faster Payments: these will always be complete by the end of the next business day, but if both banks are full members of FPS the transfer will normally be complete within 2 hours, often a great deal less. Full details here

http://www.fasterpayments.org.uk/faster_payments/how_to_use_the_faster_payments_service_new/-/page/1948/

G_M

Providing you can produce bank statement showing where all the £ is coming from (ie not cash from pimping) it should not matter how you phisically transfer it, provided it arrives in good time (and is clearly originated from you).

Use Faster Payments.

artbaron

That isn't true so your solicitor is either wrong or you misheard. You can transfer money from any number of accounts to your current or nominated account and pay the fee from there.

go_cat

We paid our deposit via bank transfer straight into the solicitors client holding account free , can you not ask to do this?

gillianlouise

You do not state which banks, or the amounts in each account. You could do Faster Payments if the amounts are below each banks faster payment level. These transfers are same day and occur no cost. You need the same details as those for chaps. Where as chaps there is a cut off time I understand that there is no cut off time for Faster Payments.

Biggles

I can't think how your solicitors came up with their '30-day rule'. I've never heard of it and have just been moving money around for a completion without any queries.

Talk to your bank, they're the only ones who will be concerned - if anyone is.

Free Faster Payments is fine as long as the amount is within each bank's maximum (it varies from bank to bank and can be anywhere between £10k and £100k). If you need to send by CHAPS, you really only want to make one payment, due to the cost.

jennifernil

I've never heard of any 30 day rule either.

Who keeps money languishing in one account that pays a miserable rate when it could be earning a half decent rate spread across something like Lloyds Vantage accounts?

Our daughter is buying a house very soon, all her solicitor has asked is that she provides cleared funds the day before entry.

Cara79

Thanks everyone!

How very strange then. Definitely have an email & also verbally confirmed we can't consolidate into one a/c and make one payment via CHAPs as it needs to be in my a/c for 30 days.

Maybe I'll query this again then. I must admit I've never heard of it either.

x

Cara79

agrinnall wrote: »

Never heard of the 30 day rule but it may be a money laundering thing.

Definitely check with the solicitor how much you have to transfer, I'm pretty surprised that hasn't been made clear already.

You are living very much in the past with 3 day BACS transfers, which disappeared for retail customers at the end of 2011. Now all transfers up the the sending bank's transfer limit are done by Faster Payments: these will always be complete by the end of the next business day, but if both banks are full members of FPS the transfer will normally be complete within 2 hours, often a great deal less. Full details here

http://www.fasterpayments.org.uk/faster_payments/how_to_use_the_faster_payments_service_new/-/page/1948/

Thanks for this re faster payments! I didn't realise!

Cara79

gillianlouise wrote: »

You do not state which banks, or the amounts in each account. You could do Faster Payments if the amounts are below each banks faster payment level. These transfers are same day and occur no cost. You need the same details as those for chaps. Where as chaps there is a cut off time I understand that there is no cut off time for Faster Payments.

Thanks. It's Barclays, lloyds, nationwide and Co-op.

Ranging from 2k with the most in one a/c being £17k. Totalling around £60k.