Listing your property on the open market is likely the culmination of several months of hard work and many costs.
So, it’s natural to want to get funds back as soon as possible.
However, you may have questions about this, for example:
- When exactly do I receive funds from a house sale?
- Are there ways to speed up the process?
We have answered these questions in the article below and more.
When do I get the money from a house sale?
You will receive all the money from a house sale after completion.
In other words, once the transaction has officially gone through, your solicitor will deposit this amount into your account.
The deposit from your buyer, combined with the mortgage offered by the lender, will give you all the money you are owed (once your debts on the house are paid off, of course).
When do I receive the deposit?
As with the rest of the funds, your solicitor will transfer your buyer’s deposit into your account after the deal is official.
When will my solicitor release the funds?
Your solicitor will handle a ‘completion statement’ as part of their service.
This document outlines all the financial transactions throughout the house buying/selling process.
If you review this document, it should note when the funds will be released. You could also speak directly to your solicitor about this.
Each house transaction varies, so the specific timeframe can also be variable.
Are there faster ways to receive money from a house sale?
When you sell your house quickly, you will receive your funds much quicker.
This is why many people go directly to a cash-buying company when offloading their property: They urgently need funds.
Using a legitimate cash-buying company, you can complete the home sale within 7 days. The funds can then be deposited into your account within 48 hours of the completion.
You can also use an Auction House to receive money quicker for your property. Once again, this is popular among people in difficult financial situations who need cash quickly.
Once the hammer falls and a winning bid is locked in, the deposit is released immediately.
From then, the buyer has around 28 days to complete the purchase. If the balance cannot be paid within that period, the seller keeps the deposit, and the buyer may incur additional interest and fees.
Can my funds from a house sale be transferred into multiple different accounts?
Solicitors are responsible for ensuring that the correct funds go to all the right people.
For example, if multiple people have equity in your property, they will transfer funds in the appropriate percentage.
If the house is owned by one person with multiple accounts, you should speak to your solicitor directly about splitting the amount into each account.
As long as you verifiably own all accounts, the solicitor should be okay with honouring this request.
Do I need to pay any tax on the funds from a house sale?
If you sell a house that is not your main residence you will typically need to pay Capital Gains Tax on the proceeds.
This might mean, for example, selling a ‘Buy to Let’ property or a home you inherited through probate.
The UK government does not expect you to pay Capital Gains tax when the house is your main residence.
Stamp Duty is not paid when you sell a house. But if you use the funds to immediately purchase another property (i.e., as part of a chain), you may need to pay Stamp Duty Land Tax on your next purchase.
If a house is being transferred via probate, you will also need to be attentive to when/if inheritance tax needs to be paid.
You will need to pay this on the total value of your inherited assets. Speak to a solicitor if you need more guidance.
Why haven’t I received the exact amount that I sold the house for?
It is very uncommon to receive the precise amount of money you sold your property for.
Firstly, you need to pay off any outstanding debts (e.g. a mortgage), and your solicitor will also take their fee out of the selling price.
Your estate agent also takes a commission on the final sale price. You will receive the correct amount only after all of these elements have been considered.
How can I maximise the amount I receive on my house?
You should speak directly to your estate agent about methods to maximise the amount you make on the property.
Firstly, paying attention to the market conditions will help. If properties are in short supply in the area, people may be willing to pay more for yours.
Using the right estate agent will make an enormous difference, too. Some companies specialise in ‘premium’ properties or have a reputation for getting excellent prices.
Others, meanwhile, will exaggerate their valuation without ever being able to find buyers who will offer this high.
It is essential to consider your selection and do your research first.
Similarly, listing your house online and only accepting offers ‘in excess of’ (where the price may be advertised lower than what the homeowner wanted) a certain amount could reduce offers that undercut your asking price.
In the months before a sale, you may be able to find other ways to increase your property’s value.
For example, building an extension, improving your energy efficiency, or converting a cellar into an extra bedroom can also make a difference.
You should also focus on your ‘curb appeal’ and ensure the home looks as attractive as possible in photos.
Why can cash-buying companies send me the funds faster?
A legitimate cash-buying company has all the funds needed in-house to purchase your property.
This means that they are not relying on anyone else to make the transaction and can, therefore, send over the funds as soon as Completion takes place.
They will also not make you wait several months to find a suitable buyer on the open market.
Instead, if you contact them directly, they can take your house straight off your hands within days or weeks.
