Payment of house purchase
Nov 20th 2017, 10:35 pm
#16
Just Joined
Joined: Aug 2017
Posts: 24
Re: Payment of house purchase
Hi, can't speak for other providers but for Moneycorp:
Open an account and when you are ready to transfer money, phone them and get the best deal you can get that day. When we phoned they offered slightly over the advertised rate but obviously a little less than they can get if for.
Once you agree the amount you are buying and the rate, they will fix that for you and you then need to send them the money in Stirling. E.g 10,000 euros may cost you £9000.So you send them £9000. (They give you a reference number to make sure it goes to the right account). They will hold the euros in that account until you are ready to transfer it.
It was a simple matter of an on-line transfer of Stirling from our bank to Moneycorp account. Job Done.
Open an account and when you are ready to transfer money, phone them and get the best deal you can get that day. When we phoned they offered slightly over the advertised rate but obviously a little less than they can get if for.
Once you agree the amount you are buying and the rate, they will fix that for you and you then need to send them the money in Stirling. E.g 10,000 euros may cost you £9000.So you send them £9000. (They give you a reference number to make sure it goes to the right account). They will hold the euros in that account until you are ready to transfer it.
It was a simple matter of an on-line transfer of Stirling from our bank to Moneycorp account. Job Done.
Nov 21st 2017, 4:10 pm
#17
Forum Regular
Joined: Nov 2013
Posts: 289
Re: Payment of house purchase
I am 100% with you on this, being totally risk-averse. Not sure amideislas' suggestion would work as I believe the Notary will want to see the money change hands at completion,. That's what happened on our purchase, copies of the drafts are attached to the escritura.
Our lawyers handed over three separate drafts: to the estate for his fees, to the seller's bank to clear the mortgage (balance as at day of completion checked and confirmed in writing), and the balance to the seller LESS
the amount of our lawyer's fees to clear the mortgage off the title just in case the seller didn't attend to it (which he did and it was then refunded to him);
and
the 3% retention as the seller was not Spanish.
The estate agent's fees were deducted from the balance and paid direct to him at the request of the estate agent, and agreed by the seller.
Although handled in a different way, those are the sort of issues also dealt with at completion in the UK, especially where mortgages are concerned.
Our lawyers handed over three separate drafts: to the estate for his fees, to the seller's bank to clear the mortgage (balance as at day of completion checked and confirmed in writing), and the balance to the seller LESS
the amount of our lawyer's fees to clear the mortgage off the title just in case the seller didn't attend to it (which he did and it was then refunded to him);
and
the 3% retention as the seller was not Spanish.
The estate agent's fees were deducted from the balance and paid direct to him at the request of the estate agent, and agreed by the seller.
Although handled in a different way, those are the sort of issues also dealt with at completion in the UK, especially where mortgages are concerned.
Nov 21st 2017, 4:20 pm
#18
Forum Regular
Joined: Nov 2013
Posts: 289
Re: Payment of house purchase
You can usually fix the exchange rate & transfer funds when you think you'll get the best rate. Do make sure you have the funds available in your Spanish bank account and arrange to collect your bank draft before going to the notary.
Nov 21st 2017, 5:07 pm
#19
Forum Regular
Joined: Aug 2012
Location: Devon/Peniscola
Posts: 149
Re: Payment of house purchase
If the company is FCA authorised, that's the best security you can get. Make sure it's AUTHORISED and not just REGISTERED (I read that in a newspaper article on the subject).
We used Currency Solutions and were extremely impressed with their efficiency.
Nov 21st 2017, 6:06 pm
#20
Just Joined
Joined: Aug 2017
Posts: 24
Re: Payment of house purchase
If you're buying property you'll need a Spanish bank account for Moneycorp or any other transfer company, (do shop around!) to transfer the money to.
You can usually fix the exchange rate & transfer funds when you think you'll get the best rate. Do make sure you have the funds available in your Spanish bank account and arrange to collect your bank draft before going to the notary.
You can usually fix the exchange rate & transfer funds when you think you'll get the best rate. Do make sure you have the funds available in your Spanish bank account and arrange to collect your bank draft before going to the notary.
Nov 21st 2017, 9:55 pm
#21
Forum Regular
Joined: Aug 2012
Location: Devon/Peniscola
Posts: 149
Re: Payment of house purchase
The money transfer companies do exactly that, they transfer money. You put the money in sterling in their account, and they send it in euros to your nominated account.
So you will need an account to send the euros to. I don't know how you open an account from the UK, our Spanish solicitor did it for us, but there are different accounts for residents and non-residents. Non resident accounts do incur charges - at Caixa we paid a quarterly maintenance charge of 7 euros and 26 euros a year for a card. (we closed our account after the purchase, as we having no utility bills to pay we had no need for it. There was also a charge of 25 euros each for some document that, as non residents, we had to produce to open the account. Don't know what it was, but Caixa wanted it renewed after a period (2 years?)
So you will need an account to send the euros to. I don't know how you open an account from the UK, our Spanish solicitor did it for us, but there are different accounts for residents and non-residents. Non resident accounts do incur charges - at Caixa we paid a quarterly maintenance charge of 7 euros and 26 euros a year for a card. (we closed our account after the purchase, as we having no utility bills to pay we had no need for it. There was also a charge of 25 euros each for some document that, as non residents, we had to produce to open the account. Don't know what it was, but Caixa wanted it renewed after a period (2 years?)
Nov 22nd 2017, 8:26 am
#22
BE Forum Addict
Joined: Apr 2010
Location: London (mainly)/Oliva
Posts: 2,137
Re: Payment of house purchase
We then transferred funds in to that account (via a fx trader)to pay for the purchase. Under his POA the lawyer then authorised the transfer to the seller when completing the purchase.
All we did was pick up the keys when we made our next trip.
You do not need a Spanish bank account to forward buy your euros. There are many Uk based fx Co's that will do this.
Nov 22nd 2017, 10:17 am
#23
Democracy advocate
Joined: Mar 2006
Posts: 12,460
Re: Payment of house purchase
15 years ago it was the old-skool way - greasy notes and lots of them.
