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What to do with equity after house sells?
AH1509
Posts: 51 Forumite
Hi all,
Have sold my property, completing on 27/3/19.
I have put an offer in a property and accepted on Monday 18th March so literally started the process kf buying.
The equity that remains after my sale, what should I do with it in meantime. The vendors want a quick sale but it could take months from this point for the chain to complete.
Should I ask my sol to keep the equity in their accounts for me until then (as they are instructed for my purchase they can hold it), or do I put it in an account for the accumulation of interest? If so would my personal account be sufficient?
Is it worth the fees attached?
Any advise ?
Have sold my property, completing on 27/3/19.
I have put an offer in a property and accepted on Monday 18th March so literally started the process kf buying.
The equity that remains after my sale, what should I do with it in meantime. The vendors want a quick sale but it could take months from this point for the chain to complete.
Should I ask my sol to keep the equity in their accounts for me until then (as they are instructed for my purchase they can hold it), or do I put it in an account for the accumulation of interest? If so would my personal account be sufficient?
Is it worth the fees attached?
Any advise ?
0
Comments
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You just put it in in a bank account, one that pays interest. That probably isn't your every day bank account.0
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So I need to open a new account for this?
Is it worth the hassle?0 -
I would let the solictors keep hold of it. In my case it would have been £35 + vat to have it back then £20 to send it back to them 2 months later. Check with your solicitor.Loan 1 £5200/£8000
Loan 2 £300/£5800
Total £5500/£138000 -
Don't know if it's still the case but the solicitor I used a couple of purchases ago said that they paid interest on clients' money in their clients'account at Bank of England base rate - currently .75% - and this is what all solicitors did.
He said there was a rule or something about it but as I said I don't know if this still applies - ask.0 -
So I need to open a new account for this?
Is it worth the hassle?
Depends on the amounts and time. Making some numbers up,
gap between selling and buying of one month, equity £250k, interest at 1.5% = £312
gap between selling and buying of six months, equity £250k, interest at 1.5% = £1875
I dont know your equity and the gap so you tell me.0 -
Then add in the interest you'd receive from the solicitor's client account (if any - ask).AnotherJoe wrote: »Depends on the amounts and time. Making some numbers up,
gap between selling and buying of one month, equity £250k, interest at 1.5% = £312
gap between selling and buying of six months, equity £250k, interest at 1.5% = £1875
I dont know your equity and the gap so you tell me.
And allow for the cost of telegraphic transfers.
It's really pretty simple maths, but if you don't think it's worth the hassle, well that's up toyou!0 -
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We are in a similar position and put our money into a Virgin account, we get about £140 a month interest so worth it.0
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Poor wording! Cheers!Then add in [STRIKE]subtract[/STRIKE] to the calculation the interest you'd receive from the solicitor's client account (if any - ask).
And allow for the cost of telegraphic transfers.
It's really pretty simple maths, but if you don't think it's worth the hassle, well that's up toyou!0 -
I'd put it into premium bonds0
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