Selling and how to get the funds to the UK?

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symbiosis
Posts: 8
Joined: Sun Apr 21, 2019 10:51 am

Selling and how to get the funds to the UK?

Postby symbiosis » Wed May 08, 2019 2:23 pm

Hi all

So I have a buyer for my place BUT the big sticking point is I want the funds in the UK not in Greece. It seems with capital controls I cant transfer them (or I could but it would take forever and bit by bit).

I was informed by the estate agent that another seller had a cheque from NBG for the sale and successfully deposited it in their bank but that was Australia. The replies from the banks in Greece if they would honor the cheque was vague to say the least with some saying it would amount to a transfer, and therefore bound by the same controls....

Has anyone sold recently and managed it - if so how please?

Thanks a lot

symbiosis
Posts: 8
Joined: Sun Apr 21, 2019 10:51 am

Re: Selling and how to get the funds to the UK?

Postby symbiosis » Wed May 08, 2019 2:35 pm

PS - I should point out I inherited the property so the funds for the purchase were never brought into the country

Kilkis
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Joined: Sat Apr 21, 2007 3:58 pm
Location: Near Chania

Re: Selling and how to get the funds to the UK?

Postby Kilkis » Wed May 08, 2019 2:56 pm

Most people I know who have sold recently have done so to foreign buyers. Rather than transfer the funds into Greece the buyers transferred the funds directly from their bank in another EU country directly to the seller's bank in the UK. I don't know the details but I think a certain amount was transferred into Greece, e.g. the deposit, but that was mostly used to pay fees in Greece so there wasn't much, if any, to transfer back out again. Ask a property lawyer and/or an accountant who is knowledgeable in the property market.

Warwick

scooby
Posts: 1550
Joined: Thu Mar 04, 2010 6:54 pm
Location: Agia Nr Chania

Re: Selling and how to get the funds to the UK?

Postby scooby » Wed May 08, 2019 3:48 pm

symbiosis wrote:Hi all

So I have a buyer for my place BUT the big sticking point is I want the funds in the UK not in Greece. It seems with capital controls I cant transfer them (or I could but it would take forever and bit by bit).

I was informed by the estate agent that another seller had a cheque from NBG for the sale and successfully deposited it in their bank but that was Australia. The replies from the banks in Greece if they would honor the cheque was vague to say the least with some saying it would amount to a transfer, and therefore bound by the same controls....

Has anyone sold recently and managed it - if so how please?

Thanks a lot
You don’t say if the buyers are Greek or foreign? If they are Greek and don’t have the funds to pay outside of Greece then you would be subject to capital controls. If it’s a foreign buyer then it should be no problem including the deposit.
Men in suits will always make you pay.

symbiosis
Posts: 8
Joined: Sun Apr 21, 2019 10:51 am

Re: Selling and how to get the funds to the UK?

Postby symbiosis » Wed May 08, 2019 4:19 pm

They are a Greek Australian - so I guess the best bet is to insist on a transfer from Aus then

Kilkis
Posts: 10510
Joined: Sat Apr 21, 2007 3:58 pm
Location: Near Chania

Re: Selling and how to get the funds to the UK?

Postby Kilkis » Wed May 08, 2019 6:15 pm

It's not really their nationality that matters, it's where the funds are currently located that they will use to buy the property. If the funds are currently outside Greece then a direct transfer is possible. If the funds are inside Greece then they will be subject to capital controls. These are gradually being eased, although the major changes tend to affect businesses rather than individuals, which is why I said to consult a property lawyer and/or an accountant who is knowledgeable in the property market.

Warwick

Kathleen
Posts: 436
Joined: Sat May 12, 2007 8:46 pm
Location: North East UK/Rethymnon

Re: Selling and how to get the funds to the UK?

Postby Kathleen » Thu May 09, 2019 11:14 am

Rather than transfer the funds into Greece the buyers transferred the funds directly from their bank in another EU country directly to the seller's bank in the UK. I don't know the details but I think a certain amount was transferred into Greece, e.g. the deposit, but that was mostly used to pay fees in Greece so there wasn't much, if any, to transfer back out again.


I am in the process of selling at the moment and this is exactly what I have done. The deposit was paid to my Greek account and will pay all fees and charges. The reduced balance will be withdrawn in full or left to use on later visits at my leisure.

The final sum is to be transferred from the Netherlands to my UK account. It is written into the contract that I must prove the receipt by the production of bank statements. I understand it is possible to with draw the full amount if the money has entered Greece from elsewhere but I was not prepared to take that risk, the bank required production of the contracts to support the transfer out of Greece and I was told that it could take sometime before it was approved. I have acted under the guidance of my Lawyer, a property specialist, with whom I have dealt since buying my home 15 years ago.


Do not use the banks for the transfer, however, their charges are astronomical!

Kathleen

symbiosis
Posts: 8
Joined: Sun Apr 21, 2019 10:51 am

Re: Selling and how to get the funds to the UK?

Postby symbiosis » Thu May 09, 2019 11:34 am

Thanks Kathleen, I aim to persuade the buyer to use transferwise if I can!!!

symbiosis
Posts: 8
Joined: Sun Apr 21, 2019 10:51 am

Re: Selling and how to get the funds to the UK?

Postby symbiosis » Thu May 09, 2019 11:37 am

My main problem is that I don't live in Greece and so the window available to come and sign needs to be coordinated with the funds reaching my account and is in a very tight time frame


symbiosis
Posts: 8
Joined: Sun Apr 21, 2019 10:51 am

Re: Selling and how to get the funds to the UK?

Postby symbiosis » Fri May 10, 2019 2:19 pm

Thanks - unfortunately it looks as though its really only going to apply to businesses rather than individuals but we can live in hope

Kilkis
Posts: 10510
Joined: Sat Apr 21, 2007 3:58 pm
Location: Near Chania

Re: Selling and how to get the funds to the UK?

Postby Kilkis » Fri May 10, 2019 2:34 pm

My guess, but it is only a guess, would be a relatively big change for business and a relatively small change for individuals.

Capital controls were introduced to stop money fleeing the country. Unfortunately that has the side effect of limiting business, i.e. a manufacturer who needs to import commodities or components in order to manufacture his product cannot do so because he cannot export money to pay for them so his business goes down to whatever level the controls permit. Perhaps he was exporting the finished article so decreasing his production decreases his exports and hence decreases money flowing into the country. Assuming there is some added value in his manufacturing process you stop more money flowing in than you stop flowing out, the exact opposite of what you intended to do.

Whenever governments interfere in free markets they usually cause more harm than good.

Warwick

symbiosis
Posts: 8
Joined: Sun Apr 21, 2019 10:51 am

Re: Selling and how to get the funds to the UK?

Postby symbiosis » Tue May 14, 2019 10:04 am

Kathleen wrote:
The final sum is to be transferred from the Netherlands to my UK account. It is written into the contract that I must prove the receipt by the production of bank statements.


Hi Kathleen

How exactly did this work please - was the money paid into your account before you signed the final contract or afterwards?

Thanks

symbiosis
Posts: 8
Joined: Sun Apr 21, 2019 10:51 am

Re: Selling and how to get the funds to the UK?

Postby symbiosis » Mon May 20, 2019 1:34 pm

As an update - It seems that the sale funds are in Greece and so I'm stuck with the capital controls however the buyer is going to give me a bankers draft from National Bank, and I have been assured by my bank here in the UK that it wont be an issue cashing it....

My only issue is not knowing how much national bank will charge me for the pleasure but its very cheap on the UK side

Fingers crossed!!


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