Top tips for buying abroad

Going through the house buying process in the UK is a big task, so doing this in a foreign country is bound to seem daunting. Don’t worry; here are some handy tips to help you buy that home successfully.

• When you are presented with a contract in a foreign country it is probably going to be written in their native language. Never sign anything that you don’t understand, get someone to translate the contract to you just to be on the safe side.
• Each country has different laws with regards to property, so you should seek specialist advice from independent solicitors, architects and surveyors before considering purchasing a house.
• You should also get the solicitor to check the debt history on the property. If a developer has borrowed money to build the development and this amount has been allocated against each plot, you could inherit this debt with the purchase of the property.
• When you’re looking at properties abroad, viewings will no doubt be packed into a small time period and so you may be tempted to put a deposit down on what appears to be a ‘must-have property’. With this in mind, make sure you always give yourself a ‘cooling off’ period to reflect on the property and whether it is the right choice for you.
• If you are arranging finance on the property, ensure that this is stated in any contract and you have an ‘opt-out clause’. This will act as a safe-guard for you if the loan is not agreed. You must arrange a mortgage abroad, you can’t borrow money in this country in case you default as the lender will not be able to reposes the property.
• It would be a good idea to organise a mortgage finance ‘in principle’ before you agree to purchase a property, or before signing any contracts and paying a deposit. It is always good to speak to a mortgage adviser before you start your search, that way you have a good idea of your budget and won’t waste time looking at properties you can’t afford.
• Check with the estate agent or vendor about the costs charged by the legal and government authorities in your chosen country.
• Open a bank account in your chosen country and ensure you get a Certificate of Importation for the money you bring in from your home country.
• Set up standing orders in a local bank account to meet bills and taxes. Countries such as France, Portugal and Spain have strict rules when it comes to paying taxes and failure to do so could result in your property being seized.
• The final thing to remember is that the cost of buying a home abroad doesn’t end at the asking price. Lawyer’s fees, taxes and insurance are just some of the extras that have to be paid for in your host country and can often be more expensive.