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Retirement Abroad | Page 5 of 5 Previous |
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Mortgages - how to afford: buying abroad Retirement property abroad is still good value and there are charming villas, cottages and apartments to be had for a fraction of the price they would command in southern England, or any of the major cities in the UK. 
However, if you don‘t have the cash to hand, and are still rueing the state of the stock market, you will be needing a mortgage. Increasingly, British building societies are more than happy to lend on foreign property. Mortgage advisor Stan Childs from Simply Mortgages in Wallasey, Wirral has recently been arranging mortgages for clients buying in Florida, "although most of the mortgages I arrange on foreign property are for villas or apartments in Spain". The procedure is not difficult provided that borrowers are aware of some crucial differences between British and foreign property regulations. Taking Spain as an example buyers should be aware of the language - "most obviously remember they speak a different language. You should engage a Spanish-speaking lawyer in this country because it is easier to negotiate or go over the finer points of a contract with the other party in their own language". If you are buying from a developer, rather than a private individual, ensure they have an established reputation and preferably, English-speaking staff as well. But of course, you will still need your own British lawyer. "One of the key differences between Spain and the UK is the status of previously mortgaged property. In the UK, when you sell your own property you redeem your mortgage on it. In Spain, when you buy a property, you also acquire any charges against that property. So if you are buying privately, and the vendor has a mortgage on that property, you will be responsible for the repayments or its redemption. Naturally, this will be reflected in the price". The price, in Spain, will also carry a surcharge of about 8% of the value of the property. This is made up of estate agent‘s and lawyer‘s fees plus government taxes (similar to our stamp duty). If you were contemplating borrowing from a Spanish bank, be aware that you must have a resident‘s permit first, which, if you are a first-time buyer abroad, will be impossible at the point of sale. Finally, if you are buying a holiday home, and wish to keep your UK house, remember that if there is sufficient equity in your home, you can either negotiate for a further advance on your current mortgage or re-mortgage with a different lender". Simply Mortgages, 12 Seaview Road, Wallasey, Wirral CH45 4LA: 0151 201 6200 Please Note: Always seek legal and financial advice when buying abroad. |
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South Africa - buying a second home to let in Cape Town Increasingly popular despite new Government restrictions 
People who like to holiday in Cape Town often consider buying. Currently ninety per cent of buyers are British and last year prices rises rose as much as twenty per cent. For most of us buying and maintaining a holiday home in Cape Town is only affordable if we consider renting it out during the high season. The average price of a three-or-four-bedroom house with a pool in the southern suburbs of Cape Town - Constantia, Newlands and Claremont - is from R2,400,000 (£300,000). From December to the end of February these houses will let for R3,600 (£400) per day. A house costing R4,200,000 (£350,000) might rent for R40,000 (£3,300) a week in the high season and drop as much as two-thirds in the low season (our summer). Nick Mossop of Cape Private Properties estimates that a house sleeping 10 which has four reception rooms , a pool and tennis court, and staff is better value than an equivalent hotel. Cellars-Hohenhort, one of Cape Town‘s best hotels, costs R4,300 (£375) per person per night in a luxury double room, or R5,992 (£516) in the premier suite. For R580 (£55) a day you can hire a chef and a villa in its own grounds is more private than a hotel. For further information contact: http://www.cpprop.com |
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