Where to park money from sale

[GreenVaseline]

I'm lucky enough to own a property outright, but it's in very poor condition and repairs are way beyond what I can afford. So I've decided to bite the bullet and sell it as a project for someone who has the time and money to spend on it.

To minimise the inevitable stress, I've decided to get the sale of my property out of the way first and then start looking for somewhere new to buy later (I'll be staying with relatives during this time). I'm just wondering where to put the money from the sale of the old property while I am hunting for a new one. Surely I can't just stick several hundred thousand pounds in my current account? What do other people do in this situation?

Also... does anyone know of any step-by-step selling and buying guides for dummies like me? I've looked and looked online, but everything I can find focuses on getting mortgages in place and other stuff that I won't need.

Crumbs, I'm so, so clueless. My current property was bought for me by a parent (now deceased) a long time ago, and didn't have much involvement with the buying process. I'd appreciate any help at all!

We had substantial funds from a house sale that weren’t needed for a while. Our bank spotted the transfer to the current account, informed us it was too risky and immediately put the money aside in a savings account. All without our consent but I can see why.

It’s tricky if you don’t want to lock it in for any period of time as standard interest rates are rubbish.
We currently have our sale money sitting in our savings account.
I had intended to put it in NS&I account but they pulled there good rates last year.
I did buy £50K of premium bonds and so far I’ve won something small every month, so they are paying out more than I’m getting with my bank.
I hope to buy again soon as in reality we are loosing money!
Re selling, first thing you need to do is get 3/4 estate agents around to value your current property and discuss how they might market it.
Needing work isn’t always a problem it very much depends where it’s located, what type of property it’s is, although if you have major structural problems like subsidence it will narrow who can buy, if it’s uninsurable it will be impossible/difficult to get a mortgage, so would be cash buyers, if it’s minor repairs, decoration, refurbishment then lots of people are willing to do this type of work.

When we had a large sum from a house sale we split it up between accounts with no more than £85,000 in each account so you're protected if that financial institution goes bust.

You could also put £50,000 in premium bonds.

Id go berserk if my bank moved my money without my instructions plus having over £85,000 in one account isn't safe.

Oh, thanks. So it sounds like the sale money would initially go into my current account, and then I should immediately arrange to split it between several savings accounts, all of which should be less than £85,000. With maybe £50 of it in Premium Bonds. Should I let my bank know there is a large sum of money incoming shortly before the sale goes through?

I presume when I've found somewhere to buy I would simply transfer the money from the savings accounts back into my current just before the purchase goes through?

There is no longer any need to split up into less than £85k per account for the first 6 months due to the temporary high balances arrangements www.fscs.org.uk/how-we-work/claims-process/temporary-high-balances/
But keep track in case it takes more than 6 months to buy elsewhere

That's so helpful. I hadn't heard of the temporary high balances arrangement. Many thanks, Blue5238.

NS&I are guaranteed in full, so don't have to worry about the £85k.
As you are planning on buying within a reasonable time scale you down want to invest or tie into fixed rates.
NS&I are crap rates (as are most), but no stress. I'd probably put £50k (each if with a partner) into premium bonds.

You can keep up to £1m in your bank after a house sales and it’ll be protected.......

www.fscs.org.uk/how-we-work/claims-process/temporary-high-balances/

Ah cross post!

We moved it into our isa and invested some in our stocks and shares Isa for our kids.