How to buy a second property abroad

From putting down roots in your favourite holiday destination to earning a rental income in the off-season, buying a second property abroad can open up a range of opportunities for you. However, even if you’re already a homeowner in the UK, you’ll need to be prepared for the different procedures involved in buying abroad. This blog will help you get started with some of the most common questions about purchasing property in a foreign country.

 

Can I buy a property in another country?

You’ll need to check what the rules are for buying property in your chosen location because countries have varying rules around who can buy and own property and land. Even where foreign buyers are permitted to buy local property, there may be a requirement to register for certain permits before you can complete the purchase or pay extra taxes. Be sure to check if you’ll be subject to a foreign-buyers tax and allow time for any relevant permits or permissions to be processed as part of the buying process.

 

How do I finance an overseas property?

If you plan on paying for your new property in cash, you may be considering selling your current home or choosing to release equity on your current UK mortgage to raise funds for your second property purchase. Whether the latter route is available to you will depend on a range of factors, including your credit rating and how much of your existing mortgage you’ve paid off. Check with your current mortgage provider to better understand what your options are. One alternative is funding your second home with an overseas mortgage. With this route, you’ll likely face a longer process than a cash buyer as you’ll have to spend time navigating local regulations and laws to secure the mortgage. Remember, you should always seek professional advice on the best options for you.

 

What guidance do I need for buying a second property abroad?

It’s important to seek independent guidance throughout the buying process. This can range from hiring your own translator to help with legal documentation, to consulting a lawyer who is not involved in the process in any other way. For example, while vendors like estate agents may have partners who offer overseas mortgages, they may not present the best rates. Be sure to check that anyone you employ to help you during the process is unbiased and appropriately regulated.

 

How can I make the most of my money when buying a property abroad?

To complete the purchase of a second property overseas, you’ll need foreign currency, and making tailored money transfers with a currency specialist like Global Reach can help you to make the most of your funds. Just as you might look for opportune times to buy property depending on trends in the housing market, a currency broker can help you identify favourable times to exchange currency for your property. You can even lock in an exchange rate for your property purchase for up to two years.*

 

If you’d like to find out how you can make the most of your money during your property purchase abroad, speak to a member of our team on 020 7989 0000.

Find out more about our services, here.

 

*Locking in a rate with a Forward Contract requires an initial margin payment. Speak to our team to find out more.