what to do with house money?

Joanthebone

I am exchanging on my sale in the next couple of days and hopefully completing on or around 8th September.


My purchase is lagging behind and I don't expect to exchange contracts on that for at least a couple of weeks... how long is a piece of string?!!


My solicitor has asked if I want the money from my sale sent to my purchase solicitors... but I am not sure, I mean, if its going to be 2, 3 or maybe 4 weeks, where should I put it?


Any ideas/advice gratefully received!


btw, I have two bank accounts but even if I split the money I will exceed the £85k and would rather put it all in one place for the time being..

G_M

If safety is your concern, keep it yourself. Yes, a solicitor will keep it in a 'client account' to protect it if he (solicitor) goes bust. But if the bank goes bust it will not be protected in a business account.

If interest is your concern, keep it yourself. With some effort, you can spread it around interest-earning accounts. A solicitor's account will pay peanuts.

If convenience is your concern, give it to the purchase solicitor and forget it.

And hope that your purchase does not fall through.... or get unduly delayed.

Joanthebone

Hmm, G_M, that's my worry, that my purchase will fall through...Oh, I am never, ever, going to move again!!


I was thinking about a NS & I account.

Newly_retired

I would have thought your money would be protected by insurance if you leave it in the solicitor's client account.
But given the time span, I would want to have it in my control. You have got time to open another couple of accounts to spread it around. N, S & I will protect the whole lot, but you will get higher interest rates elsewhere, eg TSB, Santander, Lloyds etc. see threads on Banking for more advice.

smifffy1989

Newly_retired wrote: »

I would have thought your money would be protected by insurance if you leave it in the solicitor's client account.
But given the time span, I would want to have it in my control. You have got time to open another couple of accounts to spread it around. N, S & I will protect the whole lot, but you will get higher interest rates elsewhere, eg TSB, Santander, Lloyds etc. see threads on Banking for more advice.

This is correct, Solicitors have to have Professional Indemnity insurance in place. If the client account had a shortage then the PI insurance would pay out.

Joanthebone

Thank you all, I do have a TSB account and Nationwide, but don't really want to open any more, It may only be for 2 or 3 weeks, so I know I won't get much interest anyway, I just don't see why I should let the solicitors make even more money out of me! I also have to consider the fees I will have to pay when making transfers come completion day.


I have a few days to think about it, its nice to know that the Client A/c is protected too, so thanks all of you!

Lord_Baltimore

For convenience I'd leave the money with the solicitor for the probable short waiting period. You will hardly lose and arm and a leg in interest. It will help toward keeping the wheels of exchange/completion oiled - you don't want delays of your making.

If things go awry with your purchase, you can move the money then.

G_M

TSB have reduced the interest rate on their Enhance account as from 4th November