Residential Mortgages

Financial
We have considerable experience in the management and organisation of all the financial aspects required for the purchase of property overseas. If you require funding to purchase your property we can advise of the most efficient methods of achieving this, and also arrange highly preferential exchange rates for the currency you require through our network of Financial specialists. Taxation regarding your overseas property may also be an issue which requires comprehensive planning, again we can advise through our Financial specialists.

Funding the Purchase
There are various options available which can be utilised to fund a purchase, and we are able to advise and arrange, depending upon your own particular circumstances. The generally accepted options are:

Obtain a mortgage from a UK lender to purchase a property abroad.
Obtain a mortgage from the country in which you are purchasing property.
Obtain the release of equity from a UK property in order to fund a cash purchase.
Pay cash.

Exchange Rate
An often neglected consideration during the purchase procedure is the exchange rate of the currency in which the property is to be bought. This is susceptible to market forces and can fluctuate significantly enough to cause large changes in the Sterling amount that will have to be paid for the property purchase. When buying a property abroad, you will know the price of the property in the local currency but you will not know the actual Sterling cost until you buy all of the currency to pay for it. This means that the property could either cost you more than you had planned (if the local currency strengthens) or the property could become cheaper (if Sterling strengthens).

Our recommended option to overcome exchange rate fluctuations is to secure the rate with a Forward Contract. This mechanism is especially useful when market conditions are currently advantageous, but the currency is not actually needed until a future date.

The situation can become more complex when purchasing a new property off plan. This will typically involve multiple stage payments over periods of up to 18 months or longer. Due to only guide dates being given for completion of each stage, a series of Forward Time Option contracts could secure the rates right up until the final completion, whist remaining flexible in order to accommodate unspecific dates.

If you are considering the purchase of a property abroad and would like to discuss how we can help to safeguard your interests - or simply save you money by arranging a better deal than your high street bank - please contact usas soon as possible. Don't make an expensive mistake !!

Taxation
There is no doubt your tax situation will be affected as a result of your property purchase in a foreign country. Expert advice should be sought from a professional who can specifically offer guidance on issues such as : liability to taxation in the UK, capital gains tax, inheritance tax, foreign taxation, and the double taxation implications.

Many European countries prevent homeowners from leaving property solely to their spouse, but force them to divvy it up between children as well. This can potentially cause problems for those in second or third marriages, where the current spouse could be forced to sell their home. Even writing a Will may not be able to change this, although it could give the surviving spouse the right to continue living in the property.