Introduction

Ever dreamt of owning a home in the sun? Well, believe it or not it's a dream that's come true for an estimated one million Britons and even more from the EEC. 

Many people have bought flats or villas in Spain, France, Gibraltar, Italy, Portugal or Cyprus.

No longer is owning a property abroad for the rich and famous alone. Since 1993 when business barriers came down across Europe, escalating foreign travel has opened our eyes to the closeness of the Mediterranean and the possibilities of having a home there or beyond.

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Money

Your first priority should be to think long and hard about the costs involved. There are several methods of raising the cash for your foreign home:- 

If you are British, re-mortgage or take out a second mortgage on your UK home

If you are selling up to move abroad permanently and are currently British based, a short-term loan secured on your UK home could speed up the purchase 

Think about combining your cash with friends or family, it could bring a villa with a pool within reach rather than just an apartment.

However, remember that the bills don't end at the asking price. The costs for Lawyer's fees and taxes are around an extra 10% on the asking price.

A local lawyer can check that your holiday retirement home is on land legally acquired, is free of owed taxes or outstanding service charges, and is connected to the water and power supply lines. Cases do exist of people innocently buying properties built in restricted military or conservation areas, or having to pay for all too temperamental generators or overhead power lines as a surprise extra just to have light and hot water. 

A lawyer will also study your contract and advise you of any pitfalls it may contain.

Money Management

Open a bank account in the country you've chosen and ensure you get a certificate of importation for the money you bring in from your own country. This will make repatriating your cash much easier if you decide to sell up at a later date. 

Set up standing orders on a local bank account to meet bills and taxes. Fail to pay your taxes in some European countries such as Portugal and Spain and the courts could seize your property. Include your home in a will that has been translated and officially recognised according to the law of whichever country you have decided to buy in. Failure to do this can lead to really expensive legal wrangles for your executors.

When you have decided to buy your own property abroad it is best to contact someone who has already done this in order to obtain a recommendation of a reputable Estate Agent and Lawyer.  Once visiting the country you can then spend time investigating the area and properties.