How to pay/transfer money for purchase

Bogof_Babe

I'm hoping we will have a completion date within the next couple of weeks, but as cash buyers I'm not sure of the best way to physically transfer our payment, given that it generally seems to require split-second timing on the day.

I suppose a CHAPS payment from my current account is the logical way, but (I know this sounds daft in the circs) I resent paying around £30 when there are other payment methods that don't cost anything.

If I pay by cheque in advance, to allow for clearance time, is there a risk in this? Obviously I'd have to time it so that it cleared on the day of completion, which is a bit hit or miss. I'd hate for us to be all ready to move our stuff in, complete with loaded van, and there to be a hiccup in the payment.

Presumably I make payment to the solicitor not direct to the vendor (is this right?) so he would be legally bound not to pocket the cash and disappear - presumably?

I tried doing one of the new instant bank transfers yesterday from my NatWest account to a participating building society, but it bounced back for some reason, so until the system is proven to be more stable I would hesitate to rely on it.

So - can anyone suggest a charge-free, risk-free way of making payment for my flat?

Reds-on-Sea

I was going to do a chaps payment, but it turned out that my solicitors were using the same bank as me - (HSBC) and as it was some kind of internal payment, there was no charge which was cool for me ). Worth checking on the off chance hey! If you're paying by cheque, make sure it clears the day before. I wouldn't want the hassle of worrying whether it's cleared or not! Bear in mind though that - depending on however much you're transferring - you'll be losing interest for quite a few days waiting for it to clear. My normal internet bank transfers (i.e. make a payment) has a limit of £10,000 a day on each account, otherwise I probably would've gone with that - though again, you have to wait a few days for funds to clear.

I'd just bite the bullet and pay the chaps fee hehe!

Bogof_Babe

That's a good point - the CHAPS fee would probably more than balance out the loss of interest incurred in messing around with a cheque.

All I have to do now is persuade my husband - he's the one saying he doesn't see why... etc. etc. :rolleyes:

Thanks for the quick reply and the common sense!

poppysarah

You need to ask your solicitor what they want you to do.

They may want to have a bankers draft rather than a cheque.

It'll need to be with them in advance - but def ask them.

SouthCoast

CHAPS is the usual way to pay for property completions.

One days interest on £100k @ say 6% = £16.43.

Bungarm2001

You pay the solicitor...into a dedicated client account which they should give you the details for well before completion.

My solicitor frowns upon cheques and always recommends CHAPS payments, but I have also done BACS payments in the past, which are free, but you have to time this very carefully to get into the receiving account at precisely the right time.

Ask your solicitor which method they prefer/recommend

AJ1982

Personally I would always rely on CHAPS payments, relying on cheque/draft or bacs IMO is a risky business as the money is technically "lost for days" while its authroised/cleared etc. CHAPS is same day, and in the event of any problems, it can be queried/resent the next day meaning you dont have to go through another "4 day clearing" cycle. The FPS (Faster Payment Service) only sends from some banks, may not be used currently in your bank/BS, so you should check.

I appreciate tis alot of money, but IMO is definitely worth it. Luckily I got mine free, being a bank colleague

Trollfever

I know that my Tesco on line account has a max transfer of £10,000 a day.

Bogof_Babe

Thanks everyone. I logged off last night so have only just seen these replies.

I will be guided by the solicitor then - seems the best bet all round.