Q. I’m considering the purchase of a property that’s
still under development. What do I stand to lose if the developer
ceases trading before the sale has been completed?
answer
Q. Do I have to be in Overseas to sign the paperwork?
answer
Q. Should I have a Local mortgage or a UK mortgage?
answer
Q. How does the cost of living abroad compare to the
UK? answer
Q. Do I have to be a resident before I can buy a
property there? answer
Q. I’ve found a property that I’m interested in. What
happens next? answer
Q. I’m not in a position to fully fund the purchase of a
property yet and the price of Overseas properties seems to be
rising quickly. What can I do? answer
The Local authorities have introduced new legislation to protect you.
Property developers are required by law to take out bank guarantees or
insurance policies that provide for the repayment of any monies that you
have already paid, plus interest, in the event of bankruptcy prior to
completion. You may not be able to buy the property in question but at
least you won’t have lost your money. back to questions
No. You can give your local lawyer Power of Attorney, which means that
he can act on your behalf at each stage of the buying process. back to questions
You can usually take possession of the property within a couple of weeks
of the title deeds being signed. This allows time for your solicitor to
arrange for connection of electricity and water supplies. He will inform
you when this has been done. back to questions
New property comes with a 10-year guarantee. Also, the purchase price is
fixed as soon as you pay the deposit which, given the steady rise in
Overseas property values, means that the house you eventually move into
will be worth considerably than the money you owe for it. It is quite
common for people buying purely as an investment to sell the property
before moving in or even before the building work has been finished,
making a considerable profit.
back to questions
If you’re buying a property overseas to live in or as a ‘buy to let’
investment, a pre-owned home has the advantage that you can move in
within a very short space of time and you can see first hand exactly
what it is you’re buying. Be aware that older properties will not have
the benefit of the local equivalent of the NHBC 10 year guarantee and
that you must satisfy yourself as to the quality of the property before
you buy it. back to questions
If there are communal areas in the development that you’re considering –
gardens, walkways, swimming pools etc. – then you will probably have to
pay a small sum at regular intervals to contribute to their upkeep.
back to questions
Either is acceptable. You’ll find less choice and fewer options locally
but the interest rates can be lower and by having a mortgage in Euros
you won’t be affected by currency fluctuations. The banks
prefer to lend against property that has already been built as the
developer will typically already have taken out a mortgage on the plot
to fund the building. back to questions
It’s much cheaper! Some estimates suggest that the cost of living abroad is only about two thirds of living in the UK. Water, electricity,
cars, petrol, food and drink are all less expensive, sometimes
dramatically so. back to questions
Properties on new developments that have not been completed can be
reserved by paying a deposit, which fixes the price. You will have to
make a second, larger payment about a month afterwards, which can be up
to 50% of the agreed price but no further payment is necessary until the
property has been completed. Many property investors sell their interest
in the property to a third party before it is ready for occupation at a
considerably higher price than they originally negotiated. back to questions
It’s not difficult but you do need the services of an English-speaking
local lawyer to look after your interests as the laws and procedures
that govern the buying and selling of property overseas are
substantially different to those in the UK. back to questions
Yes, assuming you have owned it for six months or more. If you’re
planning on keeping it there you’ll need to get an export certificate
from the DVLA and if you take up residency you’ll have to register the
car locally and get a local number plates. back to questions
There’s no problem with this providing you have evidence of the relevant
vaccinations. Don’t forget to apply for a pet passport if you want to
bring your animals back to the UK. back to questions
This is a straightforward process that is similar to opening an account
in the UK. You’ll need two forms of identification, usually a driving
license with a photo, plus your passport. back to questions
As in other countries, Banks will want to be satisfied as to
your income. This usually means supplying recent salary slips, banks
statements and P60’s for every signatory to the loan. If you’re
self-employed you’ll need to submit your most recent tax statement and
audited accounts for at least the last two years. back to questions
Quick & easy searching of developments and properties.
Register here to take advantage of:
· Save your developments
· Email newsletters updating you with the latest developments that match your requirements.
Find your ideal property with a weekend inspection trip.
Calculate prices with our on-line currency converter .
Compare prices from the industries leaders.
Book your tee-off times on some of the best golf courses in the world.
Exchange Rate
1.517 €/£. Last updated at 16:29 on the 24 January 2007
