Financing a Purchase

When purchasing a property abroad, you will generally be required to pay an intial deposit then remaining balance/stage payments.

When you have found your ideal property a non-refundable holding deposit of £2,000, in the form of a personal cheque will be required. This will guarantee removal of the property from the market. This deposit forms part of a legal contract, which holds the price of the property as agreed at the time of paying the deposit and guarantees you will not be affected by any future price increases.

This sum will be held by the Lawyer; licensed property Conveyancer or developer and the contract of sale will be drawn up for your agreement and signature. Should you wish, further transactions can be completed in your absence, by granting Power of Attorney to your agent or Lawyer.

Note: You are not required to pay with a bankers draft. A personal cheque is acceptable as a £2,000 deposit by all bona-fide overseas estate agents and developers. Remaining balance/stage payments: If you are purchasing a new build property that is not yet built, or is in the process of being built, you will need to arrange for payment of your agreed stage payments. These figures vary from development to development and builder to builder. It is not an exact science! However, before you enter into any contract you will be informed of the dates and amounts of payment. Typically though, after the initial £2,000 holding deposit a payment of between 30-50% will be required within 30 days with, normally, the balance paid upon completion.

If you are purchasing a resale property, or a new property that is already built, it is very different. After payment of the initial £2,000 holding deposit the balance will be required normally within 30 days.

For new build and re-sale, once your legal representative has finished their searches and investigations and the monies are paid over, the title deeds are finalised and the property is yours, all legally signed and secured.

This can be paid in one of three ways or a combination of them.

If you already have the full amount of property purchase price in cash in a deposit account within the UK.
Your only consideration will then be the exchange rates between the pound and euro when the various stage payments are required. Click here to find out more

You may decide to raise funds to purchase a property abroad, by way of re-mortgaging your own property in the UK. With interest rates so low this is a popular option. We can arrange for independent advice on this topic, either with your current lender or perhaps changing mortgage companies to a better deal. Fill in this form to speak to an advisor.

If you do not have the full cash funds available, and do not want to remortgage a property in the UK then the only other option available to you will be take a mortgage out in the country you are purchasing.
This is normally easily arranged but you will typically require a 50% cash deposit, before a mortgage can be arranged. Click here for a mortgage calculator.