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Have had a cash offer accepted, lawyer says he will hold the money on my behalf, in one account in my name, to which the FSCS limit of £85,000 applies, in the "unlikely event the bank should fail." The lawyer will not be liable for any losses resultant from banking failure.

So at some stage all the purchase money (more than £85k) will be sitting in the one account awaiting exchange of contracts and final handover. At this point the lawyer's bank of choice (RBS - 80% taxpayer owned, just to make things marginally more complicated) goes toes up (see Murphy's Law, Chapter One).

Any advice would be gratefully received.

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Have had a cash offer accepted, lawyer says he will hold the money on my behalf, in one account in my name, to which the FSCS limit of £85,000 applies, in the "unlikely event the bank should fail." The lawyer will not be liable for any losses resultant from banking failure.

So at some stage all the purchase money (more than £85k) will be sitting in the one account awaiting exchange of contracts and final handover. At this point the lawyer's bank of choice (RBS - 80% taxpayer owned, just to make things marginally more complicated) goes toes up (see Murphy's Law, Chapter One).

Any advice would be gratefully received.

we had similar situation, decided to open lots of accounts with different non linked banks and put £85 k in each.

-problem is that some banks only let you transfer £25k a day electronically, you can transfer more by CHAPs(?) but have to pay £35 every time you make a transfer.

-can transfer any amount by cheque but takes ages to clear.

-it is worth putting in savings accounts for interest.

-another problem is transferring it all back,and getting all money transferred back into correct account for when you want to complete.

would be interested to know if there are any other solutions to this problem.

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The reason the lawyer is pushing you to do this is that they will be getting a different interest rate from the bank from that they give you, and they can trouser the difference. You have to specifically ask for all of the interest to be credited to you. The money normally goes into a 'client account', is pooled up, and interest placed on it; the laywer can give their clients 0/01% and keep the rest. Risk is that the account is frozen/lost before it get to you, then someone has to sort out who's bit of the account belongs to who -a like MF global.

If you cannot get the monies transferred straight to you (and I dont see hwy not, unless there is another lien or a divorce etc), insist on a segragated client account not comingled with any other client funds, and ask for the lawyer to be personally liable for loss. If they say 'I'm not taking that risk" say 'why should I then'.

I hate lawyers.

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I think you just answered your own question.

The 'Taxpayer or State Owned' RBS is not about to go 'Toes Up', might be in a mess but UK plc would have to collapse before that happens. Impossible while Merv still has the keys to the Printy Printy machine.

Mind you. If I had that much money I'd be paranoid too. :unsure:

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Thanks, folks

Good advice, as always. I have written to the lawyer suggesting the money be split between two bank accounts, which seems the sensible thing to do, and of course, the lawyer is a sensible person.

I guess I am paranoid. I wonder why. Of course the government would not let RBS fail. In an interesting change of emphasis, the current government said in the event of a banking collapse the banking act would allow it to lend money to the FSCS, which is itself a private comany whose website says "If a firm becomes insolvent or ceases trading we may be able to pay compensation to its customers." The operative words here being "allow" and "may." The previous government said it would ensure that the FSCS has access to enough immediate funding to pay out depositors in a timely manner, through borrowing from the Government or Bank of England.

I hate lawyers too.

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  • 434 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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