House sale funds to be kept in solicitor's Client account or my own bank account?

kaya

My uncle is worth a few million quid, he once told me to ever only pay bills when you get the red one and people are screaming at you , his reason was " why should money sit in their bank account gaining them interest when it could sit in mine " ,over a lifetime that adds up to a few quid , same rule applies to this post

QTPie

You can put it all in an NS&I account - the full amount is secured by the government (and not just £85k per person). We did this when we had a very substantial amount from a sale (took another 5 months to complete on our purchase). Might have got a tiny bit more money - in interest - if we split it (between 7 accounts), but keeping it together in one account was a heck of a lot easier.

Annie1960

G_M wrote: »

* You will get no interest from the solicitor's client account.

* solicitor's client account is safe

* Put the money in an interest earning account in your name (shop aound for rates or look at the 'savings/investments' forum

* don't put more than £85K in any one bank (unless you have a joint account)

Exactly what I was trying to say before I had my cup of tea this morning, but G_M puts it more elegantly.

CreativeThinking

G_M wrote: »

* Put the money in an interest earning account in your name (shop aound for rates or look at the 'savings/investments' forum

* don't put more than £85K in any one bank (unless you have a joint account)

So due to the FSC limit of £85,000, if I were to keep the funds in my personal bank accounts, I should split it so that I put no more than that amount into each different bank account?

For example if sale funds were £200,000 , I can do it by depositing £65,000 in 2 accounts (HSBC & Barclays) and then £70,000 into a 3rd account (Lloyds). I guess it makes sense that each of these will be fully covered by the FSC.

While obviously it's much more simpler to deposit the whole £200k into one single account, realistically what are the chances of the bank failing? But I guess with such a high volume of money, you simply cannot take the risk.

But one thing is for sure is that because my house-hunting could turn out to be for a long period, I shall keep the funds personally.

d2001

Hi all,

I'm buying a house and I don't want to put my deposit with a solicitor I hardly know.... I tried to get a few quotes and I asked them all about this problem of the deposit. They all gave me wooly answers and some said I would be protected by the law society. I checked on the law society website but didn't find much useful info. however, one solicitor did try it on and asked me for the following:

Indemnity Fund Contribution £200-£500.00
> plus VAT

I asked for clarification but got no reply....

any ideas?

rgds
DP

davidmcn

d2001 wrote: »

I'm buying a house and I don't want to put my deposit with a solicitor I hardly know.... I tried to get a few quotes and I asked them all about this problem of the deposit. They all gave me wooly answers and some said I would be protected by the law society.

Yes, it is protected. And you're going to have to hand it over to someone at some point, wouldn't be much of a deposit if it stayed in your account.

alchemist.1

d2001 wrote: »

Hi all,

I'm buying a house and I don't want to put my deposit with a solicitor I hardly know.... I tried to get a few quotes and I asked them all about this problem of the deposit. They all gave me wooly answers and some said I would be protected by the law society. I checked on the law society website but didn't find much useful info. however, one solicitor did try it on and asked me for the following:

Indemnity Fund Contribution £200-£500.00
> plus VAT

I asked for clarification but got no reply....

any ideas?

rgds
DP

They are all out to get you. Don't trust anyone. Keep it in cash at home.

G_M

d2001 wrote: »

Hi all,

I'm buying a house and I don't want to put my deposit with a solicitor I hardly know.... I tried to get a few quotes and I asked them all about this problem of the deposit. They all gave me wooly answers and some said I would be protected by the law society. I checked on the law society website but didn't find much useful info. however, one solicitor did try it on and asked me for the following:

Indemnity Fund Contribution £200-£500.00
> plus VAT

I asked for clarification but got no reply....

any ideas?

rgds
DP

You are buying a property worth several hundred thousand pounds yes?

And you are trusting someone you hardly know to check whether this property actually belongs to the person you intend to pay?

and whether the property has any legal restrctions associated with it?

Madness!

Forget this solicitor you hardly know and do the conveyancing yourself.

Meanwhile, keep the deposit safely under your matress. Under no circumstances should you pass it to anyone else you don't know, whether that be your unknown solicitor, the seller's solicitor, or the seller.

chris_m

G_M wrote: »

* don't put more than £85K in any one bank (unless you have a joint account)

The FSCS £85K protection is reducing to £75K in January.

However, temporary high balances greater than £75/85K (up to £1M) are also protected, for up to 6 months after they were initially deposited.

nidO

Be aware this is a necro'd thread from early 2014.