Buying without mortgage - help with procedures please!

confusedoldlady

We're hoping to sell and move to Wales, we've had an offer accepted on a property. We are retired, mortgage free and using the proceeds from our sale and savings to fund the move. It's been 30 years since our previous move. Having read through the reams of paperwork from our solicitor, I see that the balance payment has to be paid to them a few days before completion to allow time for the transfer - makes perfect sense.

However, it never occurred to me! We've always had to buy with a mortgage before and of course the Building Society handled it. Can anyone advise how we deal with this - do we need to take out a bridging loan for the (hopefully) few days between needing to transfer the money (around £200,000) to the solicitor and the funds coming through from our buyer? We can cover the deposit from savings but as I said, having to stump up the balance is something I hadn't considered.

Thanks for any help.

alchemist.1

Would work the same as it would with a mortgage. Money gets passed up the chain on completion day.

Only difference being that you won't need the money in the solicitors account beforehand to ensure completion.

franklee

The solicitors will handle the money from your sale going to your purchase, the money moves on completion day. You just have to supply the extra if you are putting any more money in from savings so your solicitor has cleared funds ready for completion day.

You need to supply any deposit by exchange.

Ask your solicitor how much is needed in cash from you and by when.

G_M

Are you Exchanging in advance of Completion? How far in advance?

Or Exchanging/Completing same day?

Are you moving somewhere cheaper or more expensive?

The sources of funds, and timing of payments, will depend on the above.

But since you are using a solicitor, why not ask him on what date(s) he will need cash from you and in what amount(s)?

confusedoldlady

Thanks everyone! That's what I was hoping to hear. I assumed that proceeds from our sale would be bumped up the chain but when you read that money needs to be with them some days before completion, I wasn't sure how that worked.

I will of course check with our solicitor - I just didn't want to spend the whole weekend worrying about it!

Grateful for your replies.