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It is very important when buying abroad that you receive assistance from people you can trust.
Remember different countries have different laws and you don’t want to fall victim to things like “land grab” or to find out that you don’t in fact own the property that you thought you had bought, or that you have inherited someone else’s debts with the property.
The best tip we can give you is do not buy on impulse, by getting carried away on holiday for instance, especially in a country where you do not understand the language. This will not give you time to do due diligence checks, to find out if you have the right location to meet your needs and circumstances, to see if you are buying at a good price, or to check out lawyers, agents etc.
If you are thinking about buying abroad, contact us in the first place without obligation. We can look for properties to suit your requirements in the right locations to meet your needs and at the right price you can afford. We deal in re-sales, re-possessions, key ready and off-plan.
We are here on your door step to guide you through the process as much as possible, to speak to you in plain English and to help prevent you making some of the most common mistakes.
Arranging finance
If you are going to need finance, it is best to get this approved before you go. It is important never to sign a preliminary contract without having your finance in place. This could be very costly, if you cannot then proceed with the purchase.
Currency
We will tell you about exchange rate risk, as it is important to take this into account. We have seen in recent years the pound was at one time able to buy 1.45 Euros. Not so long afterwards, it was almost even one for one. This is a big consideration, especially if you need a mortgage or you are expecting the purchase to be funded from rental income. We will arrange finance accordingly to take into account the lowest risk.
We may also be able to arrange more favourable rates for transferring currency abroad than the banks and building societies are able to offer.
Specialist advice
We should be able to put you in touch with independent lawyers and other professionals who are properly qualified and who speak good English but are totally familiar with the law of the country in which they practise. We can make sure that all documentation is transferred into English for you.
We will try to make sure that you fully understand your contract before signing it and will make any queries on your behalf with the lawyer and/or developer/agent.
Fees
In many countries abroad there are taxes and notary fees to pay when purchasing a property in addition to the normal legal fees. It is important that you consider these before making the purchase as sometimes they can amount to 10 or 12% of the purchase price and cannot be borrowed. We will do our best to make you aware of all such fees up front.
Survey
It is essential that you treat purchasing abroad with as much care as you would in the UK. People have made many mistakes, particularly when they think they are getting a bargain for cash, taking the vendors word that everything is OK. Before proceeding with the purchase it is very important to get an independent valuation carried out. We can assist you with this. If you need the assistance of a foreign mortgage, the lender will arrange to do one for you.
Developers/agents
Many countries abroad do not have much regulation in relation to property purchase and a developer or agent could really tell you anything to try and get the sale. We find out what the developer’s track record is, how long they have been trading, whether they have references from other buyers, whether their prices and/or predicted rental returns are fair and also what capital growth could reasonably be expected (although it has to be said that none of us have a crystal ball).
Type of property
Before buying abroad we ask you to seriously consider the type of property you want and can afford to look after. For example a villa with your own pool may sound very nice but you must bear in mind the cost of up-keep to pools and gardens when you are not there. In hot countries plants and lawns need regular daily watering for instance. Also security can be an issue. We will discuss with you all your intentions for the property to try and ensure you don’t buy something you may regret.
Location
We often have people coming in to the office and announcing “we want to buy a property in France/Spain/USA etc” can you give us some brochures? This has to be likened to someone coming in and saying “we want to buy a property in the UK - have you got a brochure?” We need to know where to start. Ours is a small country in comparison with the others mentioned but just look how many properties we have in the UK and how many locations and designs. Does someone want to be in the middle of London, at the sea-side, miles away from anywhere, near a town, near a hospital, in a quiet place, place full of night life etc etc. It does help if you have an idea what you are looking for. Again, we will sit down and discuss location with you because it is important that if you like plenty of facilities nearby that you do not move miles away from anywhere. We can also discuss whether you will need to make a compromise because of your budget. Location can make such a difference to price. For instance if you want a front line sea view this is likely to cost your more than just being near the sea or having a distant sea view. Prices of property in popular areas are likely to be higher.
Bank account/accountant
We can help you open a foreign bank account and find an accountant should this be necessary and to protect you against falling foul of foreign tax laws.
Spanish title insurance
You can now take out insurance against the things that people most worry about when buying a property in Spain i.e.
- Fraud
- Land grab
- Border disputes
- Marital problems
- Bankruptcy of the Seller
- Compulsory purchase
- Demolition Order
- Unknown heirs
- Hidden legal defects
- Impossibility to access
- Defective size
- Unpaid taxes and fees
- And much more...
The insurance is designed so that if your problem cannot be resolved in 6 months, you will receive compensation for your financial losses incurred up to the purchase price agreed in the title deed, with a maximum indemnity of E360,000.
The title insurance is a one off payment of currently E293.93 (as at December 2009), and covers you for 20 years, meaning a monthly equivalent of just E1.22 .
Contact us to find out more...
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