Short gap between selling and buying, what happens to the capital?

paulg22

Hi, we're about to sell our first house, with a gap of about a month between completing on our old one and (hopefully) moving into the new one, in which we intend to find somewhere to rent short term.

During that month, can anyone advise what does/what should happen to the capital? If I just get a cheque and pay it into my bank to earn interest will the be implications for moving it around under money laundering etc?

TrickyDicky101

The answer to your questions will potentially depend on how much cash you are talking about - so how much is it? If you have an outstanding mortgage, that will need to be paid off first out of the house proceeds.

paulg22

We're going to end up with just over £40k from the house sale proceeds once the mortgage is paid off, so not a fortune, but enough to make me think about interest!

Senior_Paper_Monitor

£100 less tax at absolute max - I'd tend to simply leave it with the solcitor

Jenniefour

Agree, and if it's a month between completion on the house you're selling and completion on your new home that means your solicitor will need some of it in order to exchange contracts on you new house. Not clear if you took that into account. Usually 10% of purchase price.

davidmcn

paulg22 wrote: »

will the be implications for moving it around under money laundering etc?

Not a problem as your solicitor (assuming it's the same one) will know where the money came from. Just needs to be a paper trail showing the funds going in/out of the bank.

paulg22

Right that all makes sense, thanks all for the replies