The Association of Mortgage Intermediaries (AMI) has launched its latest advice paper, giving guidance to members who are thinking of making a purchase of property abroad.
The intention of the factsheet, entitled “Advising clients thinking of buying abroad”, is to make people aware of the regulations governing foreign property purchases and the potential pitfalls that come along with them.
Risks include currency difficulties caused by exchange rates and confusion over quotations, legal issues, such as varying legal systems and obligations, and the process of buying the property itself and the stages that must be fulfilled in order to make the purchase official.
“An increasing number of UK residents are buying property abroad, be they holiday homes, future homes to retire to or as buy-to-let investments,” said Rob Griffiths, associate director of AMI.
“There are many considerations for mortgage intermediaries when advising their clients on such a purchase and they must take great care to ensure the process goes as smoothly as possible.”
Mr Griffiths also noted that the key point to remember is that there will be variations in the process involved in making a property purchase outside the UK, no matter how similar it seems on the surface.
Establishing a bank account, ensuring you have the correct insurance cover and determining the taxation issues of a particular country were all important and potentially problematic areas, the AMI concluded.
Source: Adfero Ltd