When moving house in the UK, do you have to pay any of the fees up front?

Question

I have bought a property but never sold one before. I want to sell my flat and buy a cheaper one, but I have no money to pay any of the fees associated with buying/selling a property, until I get the money for my flat. Would I have to pay any of the fees associated with buying/selling a property up front, or can I pay them after I have received the cash for my flat? I seem to remember when I bought my flat the main bill came after everything had gone through, but Im not sure if it always happens like that.

Is it possible that a sale could fall through and Id be left with a big bill and no buyer?

Answer 1

If your solicitor doesn't ask for any fee up front, then you shouldn't have to pay anything. I've seen some solicitors ask for a fee of some sort (not sure what they call it) but most other ones don't charge you until the transaction is complete and then the money is deducted from the sale price.



If you instruct the same solicitor for selling and buying, then it's often the case that they can make the completion date for the two transactions coincide. Just keep in mind that when you buy a property, you'll have to pay a 10% deposit upon exchange of contracts. If you have no extra money before receiving cash for your flat, then you should wait until the completion date is nearing before you proceed with the purchase of the new flat. In other words, try to time things so that the completion date for your old flat is around the same time as the exchange of contracts for your new flat. That way, you're guaranteed to have money to pay the deposit. Timing is crucial here.

Answer 2

In the UK your solicitor usually arranges the sale and purchase to go thru on the same day so the sale of your flat pays for the new property. He then pays estate agents fees,deducts his fees,stamp duty,land regestry and other charges from the equity and sends you a cheque for the remainder.

However there are some fees payable up front for searches etc. Your solicitor can tell you what this will amount to when you hire him.

If you have a survey done that will need to be paid for.

The removal company may want money before the day.

You are responsible for insuring the new property from the day you exchange contracts not on completion. However your insurance company may transfer your policy to the new address without charge.

Answer 3

Depending on your solicitor and the money being paid for your flat and the amount of money you are borrowing will be what decides whether your solicitor will ask for payment in advance for deposits,estate agents and his fees.

Example: your flat sells for 100k.new flat costs to buy 80k so giving you 20k to cover deposit and fees so maybe nothing needed up front.Ask your solicitor,he will have the facts.