It is a guide to assist members with the increasing number of clients who may be thinking of buying a property abroad.
Advisers dealing with these types of clients should be aware of the differing rules and regulations regarding mortgages and property in different countries. The factsheet outlines some of the issues mortgage intermediaries should be aware of, such as the mortgage options available, while also detailing the main issues from a buyer’s viewpoint. These include:
-Currency risk. For those clients buying a property outside the Sterling area.
-Buying the property. Outlining the risk factors to take into account when buying abroad and key areas of consideration.
-Legal issues. Buying a property in a foreign country will always be subject to that country’s laws and they do not just apply to the property itself.
The guide also outlines further points to consider, such as the client’s insurance protection needs, transferring money into a foreign country, the health system of the country, setting up a bank account and what level of local taxation needs to be paid.
Rob Griffiths, associate director of AMI, said: “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. 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.
“The key point that should be remembered is that buying abroad is different to buying in the UK. In different countries there are different laws regarding property and mortgages, and there will be differences in practices, customs and local regulations. AMI’s factsheet outlines possible issues that intermediaries and their clients should consider. It is to be used as a guide and designed to assist members in growing their businesses and better advising existing clients.”
