As
freezing temperatures take over much of Britain, buying a place in the sun can
be tempting, but it’s essential to do your homework first. Here’s our guide to
avoid being ripped-off when purchasing a holiday home.
Research the property
David
Nicholls, managing director at UKForex says it is important to think deeply
about all the little details, “even down to everyday considerations such as the
distance of the nearest supermarket”.
Ideally
visiting the same place a number of times before making a committed decision to
buy is recommended. By doing so, you get an idea of any potential problems
which could push down the price in the future. For example, in Spain, be wary
of buying a home in a half-finished development due to the current economic
struggle there.
According
to Paul Rodwell of the British Consul in Alicante, Spain, an estimated 4,000
British-owned properties are currently affected by the economic problems. Some
were built without the correct permissions or by building firms that have now
gone bust.
The best
way to go about a purchase is to request references from previous customers and
past developments - to identify any potential issues that may have occurred.
Also we
advise getting a valuation done to identify issues such as subsidence, damp,
wiring defects and boundary disputes.
Find a good estate agent
“If
possible, get a first-hand recommendation by talking to friends who have bought
property in the same area,” advised Mr Nichols.
However,
you should never make assumptions and always make sure you get a second and
even third opinion. Buyers can seek help from a variety of independent professionals
such as lawyers, surveyors, architects and even neighbours to get more
information about the area and property you are purchasing.
Getting
advice and recommendations from friends is always good, but also ensures you
get some references.
Be prepared for local differences
Even if
you are experienced in property transactions in the UK, you may find business
is conducted slightly differently depending on where you are buying.
“Italy is
one country famous for its red tape, so anyone buying there will require a
technical expert to examine all the paperwork involved,” said Mr Nicholls.
Mr
Rodwell added: “When you are considering purchasing a property, check who owns
the land if there are any restrictions placed on current buildings or proposals
for new builds.
“It is
also worth finding out what licenses, permissions and planning consents are
required, and where you need to go to get them”.
Find a good lawyer
The
language difference makes it essential to find a good independent lawyer, who
speaks fluent English and can guide you through foreign legal proceedings.
“Experienced
buyers warn against going on an estate agent or developer’s recommendation when
choosing a property lawyer, to avoid any risk of split loyalties,” said Mr
Nicholls.
Consular staff
cannot provide translation services or offer legal advice, but can provide you
with a list of lawyers or translators that you can use.
It is
also vital to read up on basic proceedings, so that you can spot any potential
issues.
Set your budget sensibly
When
buying abroad, there may be hidden costs in terms of legal fees, property taxes
and fees for being a non-resident property owner.
Buyers
may even need to pay a larger deposit for a foreign mortgage than if they
borrow from a UK bank.
Mr
Rodwell says: “Once you have decided to enter into a contract you will need to
think about the terms and conditions you are entering into, how much deposit is
required and under what circumstances this is refundable.”
“You
should also take into account any mortgage and finance agreement and look at
‘opt-out’ clauses and the implications of these – never sign something that you
do not understand.”
We
recommend before putting a deposit down, the buyer clarifies what this entitles
them to, as well as any legal conditions surrounding this. It is always
important to get a receipt and bank guarantee for your purchase.
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Categories: guide to, holiday homes
