Selling property in UK to move abroad- where to put the money?

greg33

Good morning everyone,

I have a flat in central London that I put up for sale a year ago due to a disproportionate increase if service charges and reserve fund  of over £10k per year that are eroding the value of the property.

As I have been made redundant, I am challenged by these expenses even though I have savings aside.

I therefore have a couple of questions that I would like to ask to this forum

1-I received a lower offer than expected (about £40k less) from a buyer who would pay cash .For this reason I am a bit undecided whether to accept this offer or postpone it  to next year.

The offer is £450K.

However, I fear that the value of real estate in London will stagnate.

Would you accept or tale the risk ?

2- If I accept the offer and sell the property, given the fact that this flat is my  main residence, I will consider moving to Italy where I have a second property but I don't know what I should do with the money from the sale here in UK.

Ideally  I would have preferred to keep the money in the UK until I am clear about whether I want to buy a second property in Italy but products like ISAs will not be accessible when I become non-resident.

I am also not sure about savings accounts that offer give 3% interest which probably remain  accessible only to UK residents.

Do you know if government bonds Gilts could be an option ? Their interest rate shouldn't be too bad.

How about annuities?

Please let me know your thoughts on this 

Bigphil1474

If the offer is enough for you, accept it. If it isn't, don't. Personally, I'd accept it and get on with moving to Italy, happy days, but is it worth waiting until next year where you might only get a similar offer or just a few £k more? 

In terms of your money, do you have friends/family in the UK? Our grown up kids are both living abroad at the moment so their UK banking is at our address. Maybe speak to your bank and ask how you could keep the money even if you move abroad. Bear in mind you will probably want to keep it in a few different places to maintain your protection (FSCS protection up to £85k).

Bookworm105

it is of course possible to have money in UK banks whilst being non resident, but it requires surmounting some "hurdles"

How To Open A UK Bank Account For Non-Residents in 2024

Albermarle

but products like ISAs will not be accessible when I become non-resident.

As you can only add maximum £20K pa to an ISA, then not really relevant to your situation.