How does the money side work?

first78

We are moving house in a couple of weeks and I have no idea how the process works from a financial point of view.
We are selling our current place for £80k, and have about £30k equity. We are putting that £30k + £3k towards our deposit and then have to pay our solicitor and estate agent. Can anyone explain to me how that all work on the day when the money exchanges...will the additional money required be deducted from our bank account, or will be be billed by the solicitor and estate agent at a later date?

anselld

Your solicitor will send you a completion statement before completion which will include everything remaining to pay including their fees and agents fees.  You will transfer the money from your bank to the solicitors bank before completion.

bni

Just to add to the above, your solicitor's client account will act as the clearing house for the following transactions as part of completion:

1) You transfer (usually at least a day before completion) to your solicitor any additional funds plus remainder of their fees/disbursements as outlined in completion statement

2) Your purchaser's solicitor transfers the entire purchase price for your old home to your solicitor

3) Your solicitor will redeem your current mortgage by paying the outstanding balance

4) Your new mortgage will be paid by your bank to your solicitor (this might happen a day or so before completion)

5) Your solicitor will transfer the purchase price for your new home to your seller's solicitor

6) Your solicitor will transfer the their fees/disbursements from the client account into their current account

first78

bni said:

Just to add to the above, your solicitor's client account will act as the clearing house for the following transactions as part of completion:

1) You transfer (usually at least a day before completion) to your solicitor any additional funds plus remainder of their fees/disbursements as outlined in completion statement

2) Your purchaser's solicitor transfers the entire purchase price for your old home to your solicitor

3) Your solicitor will redeem your current mortgage by paying the outstanding balance

4) Your new mortgage will be paid by your bank to your solicitor (this might happen a day or so before completion)

5) Your solicitor will transfer the purchase price for your new home to your seller's solicitor

6) Your solicitor will transfer the their fees/disbursements from the client account into their current account

Many thanks for this, helps me understand and stress a bit less!

annetheman

bni said:

Just to add to the above, your solicitor's client account will act as the clearing house for the following transactions as part of completion:

1) You transfer (usually at least a day before completion) to your solicitor any additional funds plus remainder of their fees/disbursements as outlined in completion statement

2) Your purchaser's solicitor transfers the entire purchase price for your old home to your solicitor

3) Your solicitor will redeem your current mortgage by paying the outstanding balance

4) Your new mortgage will be paid by your bank to your solicitor (this might happen a day or so before completion)

5) Your solicitor will transfer the purchase price for your new home to your seller's solicitor

6) Your solicitor will transfer the their fees/disbursements from the client account into their current account

This is fantastic, thank you 

GDB2222

You should check whether your estate agent's fees are being paid by your solicitor (out of your money). It'll be shown on the completion statement if they are paying it.

frogglet

Also,  depending where your cash is kept it may take a few days notice for a transfer to the solicitors. Check with your institution, you may have to go onto a branch rather than doing it yourself on your online banking.

greatcrested

bni said:

Just to add to the above, your solicitor's client account will act as the clearing house for the following transactions as part of completion:

1) You transfer (usually at least a day before completion) to your solicitor any additional funds plus remainder of their fees/disbursements as outlined in completion statement

2) Your purchaser's solicitor transfers the entire purchase price for your old home to your solicitor

3) Your solicitor will redeem your current mortgage by paying the outstanding balance

4) Your new mortgage will be paid by your bank to your solicitor (this might happen a day or so before completion)

5) Your solicitor will transfer the purchase price for your new home to your seller's solicitor

6) Your solicitor will transfer the their fees/disbursements from the client account into their current account

Just to add to the above, that all asumes that you are exchanging and completing on the same day.

If you are exchanging contracts in advance (eg 1 or 2 weeks before completion), then your solicitor will need a 10% deposit of the purchase price (or a lesser agreed amount) on the date of exchange. The remaining 90% will be as bni explains above. The 10% will come from a combination of the deposit you receive from your buyer (likely to be less than your exchange deposit to your seller) + cash from you.