Selling Up, where to put money? + brexit?

FreshFruit

A family member of mine is selling her home, the agent says he strongly believes it would sell within 4-6 weeks. Asking price is 225 and it was bought for 150 10 years ago, probably 25k put into it but could do with a new kitchen but otherwise great shape.

The thing is she already has a property to move into (old rental prop) so the question is where to store the money? A mortgage will be paid and some other expenses so probably ~200k

My first thoughts were an ISA (20K I believe), and in 2 seperate savings account under different financial institutions (protecting 85k each?)


The money will be held for 2-3 years and no access would be needed which suits a lot of mainstream savings account, paying roughly 1.4% of the top of my head.

I was just curious, is this a safe route? Sorry for the kinda junky quality thread but just wanted an outside perspective.

Also just wondering what the general consenus is with brexit and house prices? So far I am hearing there will be a bit of a scare so it'll drop a bit but then stable out. Should we push to sell before brexit? I assume some people with cash would be looking to park their money somewhere safe such as property right about now?

knightstyle

Depends on what she wants to do with the money in two years.
We sold our house in France and want to add the money to our UK house sale to buy another house so we put it into a Virgin account with easy access and up to two withdrawals a year without penalties.

foxy-stoat

Just sell it when someone offers enough and suits their time line.

They really need to take paid finance advice with that amount of money, not folk on a forum. I would avoid putting the maximum amount in Premium Bonds though, as it will reduce my chances of winning

pinkteapot

foxy-stoat wrote: »

They really need to take paid finance advice with that amount of money, not folk on a forum. I would avoid putting the maximum amount in Premium Bonds though, as it will reduce my chances of winning

We put the max each in Premium Bonds when we sold up last December (now in the process of buying so our money will only have been 'out' of housing for about a year). Sorry for all the prizes we've cost you.

OP - although the proceeds will be from a house, the question fundamentally is "Where to save £200k for 2-3 years" - ask that question on the Savings and Investments board.

davidmcn

pinkteapot wrote: »

OP - although the proceeds will be from a house, the question fundamentally is "Where to save £200k for 2-3 years" - ask that question on the Savings and Investments board.

And the "what's going to happen with house prices" question is for the pointless speculation board.

tom9980

£20k in ISA now and a further £20k after April 5th.
£10k in easy access savings.
£50k in premium bonds.
£50k in 1 year savings.
£50k in 2 year savings account.

It is very unadventurous and i guess depends on the longer term plan for the funds.