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Bankers draft fee for house purchase

Posted: Sat Sep 24, 2022 2:51pm
30 replies1159 views10 members subscribed
Flamencalady

Posts: 188

35 helpful points

Location: Orihuela Costa

Joined: 28 Oct 2015

Have you recently purchased a house of flat? Next month I shall need to take a bankers draft or cheque from my bank account to the Notary for completion. The cheque amount will be 115,000. Santander are telling me the fee will be 0.65% i.e.747.50 euros to take my money out !!!! unless I take their home insurance they may be able to reduce this to 0.55%. 

I find this totally unbelievable surely I must have heard this wrong, has anyone else had to pay this sort of amount. Please tell me I've got it wrong, if you've recently had a property purchase did you have the same experience? Thank you in advance.

Herefordjack

Posted: Sat Sep 24, 2022 3:02pm

Herefordjack

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Posted: Sat Sep 24, 2022 3:02pm

That seems excessive. I bought my house four years ago, purchase price €191k, I was with Sabadell. The bankers draft was €450, reduced by 50% because they offered me the same house insurance deal.

Shop around.

Flamencalady

Posted: Sat Sep 24, 2022 3:11pm

Flamencalady

Original Poster

Posts: 188

35 helpful points

Location: Orihuela Costa

Joined: 28 Oct 2015

Posted: Sat Sep 24, 2022 3:11pm

Herefordjack wrote on Sat Sep 24, 2022 3:02pm:

That seems excessive. I bought my house four years ago, purchase price €191k, I was with Sabadell. The bankers draft was €450, reduced by 50% because they offered me the same house insurance deal.

Shop around.

Thank you so much for your reply. I hear what you have said, which does confirm it can be a lot of money to take your own money out of your own account. Everything has gone up so mine maybe the case which I shall negotiate and shop for insurance. You have been most helpful for which I’m grateful Thank you.

Mags03169

Posted: Sat Sep 24, 2022 9:46pm

Mags03169

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Posts: 265

180 helpful points

Location: Algorfa

Joined: 7 Feb 2020

Posted: Sat Sep 24, 2022 9:46pm

Yes, same with us in April this year, ended up taking their awful house insurance. Hoping to move all our direct debits to my Spanish N26 online bank account ( no fees ) asap and close the Sabadell account.

Flamencalady

Posted: Sat Sep 24, 2022 11:22pm

Flamencalady

Original Poster

Posts: 188

35 helpful points

Location: Orihuela Costa

Joined: 28 Oct 2015

Posted: Sat Sep 24, 2022 11:22pm

Mags03169 wrote on Sat Sep 24, 2022 9:46pm:

Yes, same with us in April this year, ended up taking their awful house insurance. Hoping to move all our direct debits to my Spanish N26 online bank account ( no fees ) asap and close the Sabadell account.

Thank you for your reply. I can’t believe I’ve got this far through the process and just found out about this, I’m further stung by the stamp duty, and today I found that as the purchaser I even have to pay the sellers outstanding bills in the property. It’s outrageous the moral of the story if you decide to sell your property don’t pay some of your bills cause your buyer picks up the tab.! Incidentally we have all our direct debits with WIZE free and I will shop around for house insurance as I will be charged the 0.65 % but it may run out cheaper to get my own insurance. Other buyers beware of all charges before you pay your deposit as your dream could become a nightmare. Thank you again Mags sorry about the rant.

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Relyat

Posted: Sat Sep 24, 2022 11:34pm

Relyat

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Posted: Sat Sep 24, 2022 11:34pm

Who has told you that you should pay the vendor's outstanding bills? 

Do you have a solicitor acting for you, if so, did you choose them? 

Regards the draft, this is not law. When I bought four years ago, like others, I arranged not to pay by bankers draft but by bank transfer on the day. 

Flamencalady

Posted: Sat Sep 24, 2022 11:49pm

Flamencalady

Original Poster

Posts: 188

35 helpful points

Location: Orihuela Costa

Joined: 28 Oct 2015

Posted: Sat Sep 24, 2022 11:49pm

Relyat wrote on Sat Sep 24, 2022 11:34pm:

Who has told you that you should pay the vendor's outstanding bills? 

Do you have a solicitor acting for you, if so, did you choose them? 

Regards the draft, this is not law. When I bought four years ago, like others, I arranged not to pay by bankers draft but by bank transfer on the day. 

Dear Relyat, thank you for your reply, My Spanish solicitor I’ve had for 16years and she has been there through my first house purchase, late husbands passing, and court proceeding to Madrid to get an off plan deposit back. So you can see I totally trust her. The debt business is a retainer of 10% which the seller used to have to pay but the law changed and now it’s the purchaser who pays it, it’s immoral in my book. As for the bank fee thank you so much for this info I shall certainly try. Regards

Flamencalady

Posted: Sat Sep 24, 2022 11:52pm

Flamencalady

Original Poster

Posts: 188

35 helpful points

Location: Orihuela Costa

Joined: 28 Oct 2015

Posted: Sat Sep 24, 2022 11:52pm

Relyat wrote on Sat Sep 24, 2022 11:34pm:

Who has told you that you should pay the vendor's outstanding bills? 

Do you have a solicitor acting for you, if so, did you choose them? 

Regards the draft, this is not law. When I bought four years ago, like others, I arranged not to pay by bankers draft but by bank transfer on the day. 

Sorry bit of wrong info it’s 3% of sellers capital gains tax !!!!! Outrage

Relyat

Posted: Sun Sep 25, 2022 9:18am

Relyat

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Posted: Sun Sep 25, 2022 9:18am

That makes sense. 

I'm glad that you have a solicitor that you can trust. 

I wasn't aware that you were now responsible for the 3%. 

Speak to your solicitor and explain about fees and that you want to pay by bank transfer. It may be worth suggesting that the day before you transfer the money to the solicitors account, that might be more acceptable. 

In any event, it is possible and all that is required is that the Notary is satisfied that the vendor has been paid. 

Flamencalady

Posted: Sun Sep 25, 2022 9:57am

Flamencalady

Original Poster

Posts: 188

35 helpful points

Location: Orihuela Costa

Joined: 28 Oct 2015

Posted: Sun Sep 25, 2022 9:57am

Relyat wrote on Sun Sep 25, 2022 9:18am:

That makes sense. 

I'm glad that you have a solicitor that you can trust. 

I wasn't aware that you were now responsible for the 3%. 

Speak to your solicitor and explain about fees and that you want to pay by bank transfer. It may be worth suggesting that the day before you transfer the money to the solicitors account, that might be more acceptable. 

In any event, it is possible and all that is required is that the Notary is satisfied that the vendor has been paid. 

Dear Relyat, I have been in such a pickle over figures that I actually did get that 3% wrong. My daughter has looked at the figures to say as the balance for the property is 103,000 in small print it says cheque payable to seller 100,000 and 3000 to my solicitor for the 3% to be retained to cover sellers possible debt. I am sorry if I’ve confused everyone not to mention my lost sleep. All I have to do now is find a translator for this week at the notary in Playa Flamenca for Gift tax dealings. Again I am so grateful for your input.

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