Simon Conn, senior partner of CFS, based in Hove, East Sussex, says that would-be buyers must do their homework before being tempted to capitalise on the opportunities that will develop when the Czech Republic, Hungary, Poland, Estonia, Lithuania, Latvia, Slovenia and Slovakia join the EU tomorrow.
"The EU enlargement presents exciting opportunities for the countries themselves and those keen to be part of what many see as a major new investment arena. However it is a fact that, in some states, the necessary legal frameworks and lending services are not in place to a degree that will ensure safeguards for those wishing to buy there," Mr Conn said.
CFS, who have over 20 years’ experience of dealing with overseas lenders and property specialists, are currently formulating lending arrangements in several EU states following the success of their ground-breaking scheme in Poland, launched in 2003. It is understood that schemes for Bulgaria and Romania are soon to be completed.
"There is a priority list of dos and don’ts when considering buying a property abroad," Mr Conn added. Top of the list are:
Never sign anything such as contract that you do not understand (for example - if it is in a foreign language).
1. Always ensure that you seek specialist advice from independent solicitors, architects, mortgage providers and surveyors before considering a purchase overseas. They should be proficient in your chosen country's laws and processes, and should know the specifics involved in buying a property there.
3. Before proceeding with the purchase (especially applicable to a resale property, regardless of age), ensure an independent valuation of the property is carried out, which should point out any problems with the property such as subsidence, damp or wiring defects - and could also possibly highlight any boundary disputes, for example.
4. Ensure you do not inherit a debt on the property before you purchase, which an independent solicitor should be able to check.
5. Always give yourself a `cooling off’ period if you see a `must-have property` and are tempted to put down a deposit there and then.
6. If you are arranging finance on the property, ensure that this is stated in any contract and you have an ‘opt-out clause’ if the loan is not agreed (which will ensure any deposit paid is refunded).
For more information contact tel: +44 (0) 1273 772811, email: [email protected] or visit the website: www.mortgagesoverseas.com
