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Payment of house purchase

Payment of house purchase

Old Nov 20th 2017, 10:35 pm
  #16  
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Default Re: Payment of house purchase

Originally Posted by delbut View Post
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.
Thanks.... how long can they hold it for you? Is it secure, ie separate client account?
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Old Nov 21st 2017, 4:10 pm
  #17  
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Default Re: Payment of house purchase

Originally Posted by FranE View Post
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.
We did a similar transaction when we bought 18 months ago (without an estate agent). One bankers draft for our lawyer to cover all fees, taxes & seller retentions (3% CGT, utility bills etc) and one bank draft to the seller for the remaining balance on the property. The notary checked these bankers draft and copies were given with copies of the deeds. Our lawyer dealt with all the sales tax, notary fees etc and we were given a fully itemised bill prior to the meeting at the notary. Our bank (Sabadell) charged us 0.4% (max €300) for the bankers draft but discounted this if we took our first years house insurance with them.....If you do this, make sure you cancel the insurance at least 1 month before renewal.
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Old Nov 21st 2017, 4:20 pm
  #18  
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Default Re: Payment of house purchase

Originally Posted by Uksp View Post
Thanks.... how long can they hold it for you? Is it secure, ie separate client account?
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.
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Old Nov 21st 2017, 5:07 pm
  #19  
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Default Re: Payment of house purchase

Originally Posted by Uksp View Post
Thanks.... how long can they hold it for you? Is it secure, ie separate client account?

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.
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Old Nov 21st 2017, 6:06 pm
  #20  
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Default Re: Payment of house purchase

Originally Posted by bolton wanderer View Post
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.
So do I need to physically go to Spain to open an account first before exchanging into euros? Are the accounts free? I haven’t found a property yet but want to exchange the money ready whenever the rate is at it’s best
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Old Nov 21st 2017, 9:55 pm
  #21  
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Default 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?)
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Old Nov 22nd 2017, 8:26 am
  #22  
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Default Re: Payment of house purchase

Originally Posted by Uksp View Post
So do I need to physically go to Spain to open an account first before exchanging into euros? Are the accounts free? I haven’t found a property yet but want to exchange the money ready whenever the rate is at it’s best
When I purchased in Spain my lawyer did everything including setting up our bank account.
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.
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Old Nov 22nd 2017, 10:17 am
  #23  
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Default Re: Payment of house purchase

15 years ago it was the old-skool way - greasy notes and lots of them.
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