Funding stamp duty and solicitor fees

incus432

We are downsizing and will have about 200k in cash at the end of the sale and purchase. The stamp duty on our purchase will be about 13k and the solicitor fees about 4k.

I had assumed that the part of the 10% deposit received from the buyer not needed for the purchase would be available to pay the SDLT and fees after completion, never mind the rest of the equity. However a message from the solicitor seems to be asking us to arrange transfer of funds for those amounts (ie c17k) to them the day before completion, with no mention of the surplus that will be available immediately after that would easily cover it all. This would be possible but awkward, requitiing selling some investments etc.

Is this usual? Have not been able to get through to ask!

Flugelhorn

sounds like it might be a bit of a standard letter - normally they would pay out any bills from the surplus - certainly when I have sold they paid the estate agent & their own fees out of the sale proceeds and sent me what was left 

TheJP

My sale and purchase (2021) fees and SDLT were paid from the surplus of the sale on the day, i didnt have to provide any monies beforehand (apart from solicitor disbursements and removal costs). Just make it clear to your solicitor thats where the funds are coming from.

newsgroupmonkey_

My last Solicitor wanted paying up front a few days before, although we were doing a sideways move, so they knew we needed to find it.

saajan_12

Speak to them, they should reconsider.

Usually if people are upsizing or moving laterally then there isn't significant sums coming out of the purchase so its understandable they want the monies ahead of time. However those bills shouldn't be due BEFORE completion and they know they'll get it from an estimated completion statement for your case so they SHOULD be able to net everything off on completion day and send you the balance without needing the £17k float for one night. 

EssexHebridean

Sounds like the wrong letter has been sent - have you had your completion statements yet? That should make everything clear. Absolutely no good reason why the SDLT and other fees can’t be paid from the surplus from your sale and purchase if the two are completing on the same day.

incus432

Thanks for all the comments. I emailed the solicitor who assured me I would not need to find more cash before completion. Stamp duty and other fees will be taken from the proceeds.  It was clearly a standard para noone had bothered to check and edit out.