Showing proof of cash when buying a house

molly22

I'm buying a house for cash.... when I show proof of the cash to the estate agents, do I have to show all that I need to make the purchase??

anselld

Yes of course, otherwise you are assumed not to have enough money to complete.  What is the problem?

Flugelhorn

I just moved the right amount ie price of house + stamp duty to my current account from my savings account, showed them (and solicitor)  that then moved it back - didn't want them to see that I actually could have paid more

eddddy

Why are you asking?

For example...

• Is it because you don't have enough cash to buy the house? (If so, why are you offering on it?)

• Or is it because you need to 'release' more cash before completion? e.g. Sell shares, sell property, sell a car, cash-in an investment, etc?

• Or because you're planning to 'save-up' more money before completion?

• Or because you're expecting an inheritance before completion?

Essentially, the estate agent wants to be comfortable that you'll have enough money to complete the purchase.

If you can convince the estate agent that you will have enough money in time for completion (even if it's not currently in your bank account), they might be happy.

But estate agents will have heard lots of 'fantasy explanations' from other people about how they're going to raise money for a purchase - so they might take some persuading. They might want to see some documentary evidence to support your explanation, at least.

And if there's another buyer with a more robust financial situation than you, the estate agent might recommend the other buyer over you. 

 

MobileSaver

molly22 said:

I'm buying a house for cash.... when I show proof of the cash to the estate agents, do I have to show all that I need to make the purchase??

When I put in a cash offer for my current home ten years ago, I simply made it clear to the estate agent that I was a genuine cash buyer with the cash in the bank and that I would not be selling my current home beforehand.

Thinking about it now, I was never asked for any proof I had the funds; whether that was because I came across as a serious, genuine buyer or whether the EA was being lazy I'll never knew. Regardless, to answer your specific question, if you do have to show proof then they will of course want to see all of it.

theartfullodger

Is this folding pound notes or bank account(s)?? 

Happy for HMRC to investigate??

propertyrental

I'm currently buying for cash. EA did not ask to see anything - just took my word that I had the £.

Solicitor is a bit more thorough regarding money laundering check though.

TripleH

Where did the cash come from?

This is what a solicitor will focus more on for money laundering purposes and what you'll need to explain to then.

I would be less bothered about demonstrating the source to an estate agent and more concerned about only giving them the minimum information they need.

When we sold we had a person who offered 'full and final value' as their first offer (but didn't state that). The problem was that they had told the estate agent they only needed a 30% mortgage despite being a FTB due to inheritance and they passed this info onto us. So we rejected their offer that was below the asking price because we knew they had the wiggle room to offer more (whether they wanted to pay more is a different matter).

Sometimes you can give too much information which will quite often be passed on.

LegallyLandlord

Estate agents usually accept screen shots of the bank accounts or share accounts (ISAs, shares with brokers etc if you intend to sell shares to raise the cash). They don’t typically go into much detail. 

On the other hand, your solicitor will be thorough and should ask to see the source of funds. They normally ask for 6 months of bank statements so they cane see the money coming in, and where from. 

It should be for the purchase, stamp duty and other costs 

AlexMac

propertyrental said:

I'm currently buying for cash. EA did not ask to see anything ...Solicitor is a bit more thorough regarding money laundering though.

Cash purchaser?

Reminds me of a time, many many years ago, when a friend was selling a house in South East London.  She told how one of her neighbours, nicknamed locally as Johnny Frou Frou, rolled up with a carrier bag of cash; and I mean foldin' money.

She wisely rejected the offer at the advice of her solicitor.

Johnny was a real local character.  He once reportedly gave his girlfriend a birthday meal in a local restaurant; then presented her with the keys to her present; a Mercedes cabriolet, parked outside with a big bow on it.  She didn't like the colour  So he changed it.  

They had two big dogs.  One called Brinks.  The other called Matt. 

Or at least that's what our mate said....

SandyN21

I'll be a cash buyer downsizing from a  house to a flat and when I sold in March I put the amount just under my budget (so that the estate agent doesn't know I could afford more if my offer is accepted under asking price and they try to push for more) in a NS&I savings account and spread the rest around other easy access savings accounts+max premium bonds.  So when I have to show proof of funds I will  provide the 'budget' account. Also, I was told that the longer a large amount of money has been sitting in one account, the better it looks.