Buying abroad

maggiemartin

Hi

We are looking for property in Spain so that we can move out there to live at the end of the year. We have a property to sell and want to buy something for the equivalent amount or less. What is the cheapest ( and safest) way of financing the gap between paying a necessary deposit on a property in Spain and then 3 months later the total purchase price and getting the money for the sale of our house here in the UK? We don't want to sell up here until we are sure we have a home to move into. To complicate matters we are both 60 and want to retire so our income will be limited to pensions which are enough to live on but not enough to incur great ougoings to finance the gap.

fazfazeli

If you are buying abroad it is always best to maximise your exchange rates. Banks tend to give the worst. One of the companies that can actually help with small sums as well as the larger ones when exchanging money is Capital Ifx ltd. There are others around as well but th ebest thing is to shop around.

Natelle_2

Depending on the actual time period, as opposed to the theoretical spanish time period, between the payment of deposit and the completion of the purchase of your final choice of your home in Spain, perhaps you might consider a overdraft or bridging loan with your current bank. Obviously your personal financial details will influence your and your bank's consideration. The time scale of the purchase cycle in Spain will depend on whether you arre purchasing 'Off plan', 'Key in hand' or a 'Resale'. It is possible that the later could be completed within 28 days if both parties want it to.

May I suggest that there are other alternatives which you might like to consider. It doesn't necesarily have to be governed by selling the UK property to finance the purchase of the property in Spain. Obviously a major factor is the final difference between the value in the UK in relation to the purchase price in Spain. A possibilty, considering mortgage rates is Spain are very favourable in comparison to the UK, is to keep the UK property and rent it out, as long as the interest payments in Spain are exceeded by the UK rental. This option would also generate additional income, probably at a better rate than if you invested the net proceeds of the UK sale and Spanish purchase in a deposit or savings account.

You could alternatively rent out UK, rent in Spain, as long as UK rent is the higher. This option could generate income, and give you time to check out if the life in Spain is definitely for you before you sell up in the UK.

What I'm trying to say is that 'sell UK - buy Spain' is not the only option at this time with the slow UK property market. It's worth a thought, and these thoughts are from experience.