Tips for Buying Property Overseas

When buying property overseas, you must be cautious as laws in place in the UK do not necessarily transpire in other countries. In addition, lawyers fees, cooling off periods and stamp duty equivalents all vary depending on country.

With the economic situation across the globe, it's even more important to be vigilant when buying your property overseas.

Top tips for buying property abroad

These are our 12 top tips for buying property overseas.

Do not sign a contract you do not understand, e.g., one that is in a foreign language you do not understand.
Always obtain specialist advice from independent solicitors, surveyors and architects prior to contemplating buying an overseas property. They all ought to be proficient in your selected country's laws and processes; they should know all the specifics involved in purchasing a property there.
In any consideration of purchasing an overseas property you need to give yourself a `cooling off` period. This will avoid any situation where you see a “dream” house and wish to place a deposit immediately.
Prior to buying an overseas property, make sure that you do not inherit a debt on the property. Your solicitor ought to be able to check this. This will save you from circumstances, such as, a developer having borrowed money to build the development and that amount having been allocated against every plot as extra security for the developer’s bank.
It is always advisable to attempt to arrange the finance for your mortgage ‘in principle’, prior to agreeing to buy the property, or prior to signing any contracts as well as prior to handing over a deposit.
Should you need to obtain finance on the property, make sure that this is written in to any contract and that you have an ‘opt-out clause’ should the loan not be agreed. This will ensure that you are refunded any deposit you have paid.
Consider combining your cash with that of family or friends. You could all end up enjoying a villa with a pool, as opposed to an apartment.
Make arrangements for your mortgage to be in the currency you earn should you be able to do so, unless you are going to be in receipt of rent in the local currency from that property. Such considerations will of course be dependent on the mortgage lender’s criteria.
Make sure you have checked with the estate agent or property vendor as to the costs charged by the legal and governmental authorities for buying a property in the country of your choice.
Make sure you open a bank account in the country of your choice and obtain a Certificate of Importation for the money you are going to bring in from your home country.
Make sure you set up standing orders with a local bank account to pay your taxes and bills. Should you fail to pay your taxes in certain countries, like Spain, France and Portugal, this could lead to court action and potential property seizure.
Of note is that your financial outlay is not solely the asking price of the property. There are also lawyer's fees, insurance and taxes which need to be paid in your chosen country and they can prove to be quite costly.