Mortgages and Money Exchange in Spain

 

Villa España ­Money matters made simple

 

 

Buying a home abroad is an exciting prospect but the financial aspect can be daunting Grey days in a British winter prompt many of us to think of sunnier climes but those tempted to buy a holiday ot retirement home abroad need to do their homework.
Spain is the most popular destination for British buying property overseas, with around 500,000 Brithis citizens owning property there, according to Datamonitor´s Buying Property Abroad report. More than a third of the tourist housing in Spain is owned by Brithish and 37% of second homes owned abroad are located in Spain.

However, if you are tempted to buy a property there, you must be aware of a number of differences to the UK house buying process. "When you first search for the ideal home, it may be wise to rent in the region you are looking to buy before taking the plunge, " says David Wells of Conti Financial Service, an independent adviser that specialises in foreighn property purchases.

Anne Guthrie of Norwich & Petersburg Building Society , adds "Get to know the area well where you are thinking of buying - make several trips out, at different times of the year. Meet the neighbours when you find a particular property or estate that you like - ask them for the ´pros` and `cons´ of the neighbourhood. Talk to as many people as you can to find out if there are anyproblems or disadvantages locally."

"Don´t let the sun fool you into thinking you´re coming to paradise. Owning a property overseas comes with its own obligations and responsabilities and, if you make a mistake, they can sometimes prove expensiveto rectify."

"For example, if you set your heart on a property because of it´s wonderful, uninterrupred views, do find out if anydevelopment is planned or would be permitted that would ruin your vista." Once you have found the property, the next question is how to fund the purchase. It may be, for example, that you have enough equity in your home to remortgageand will use that capital. Beware if you take this option, as you will not automatically have expert advice available, somehting that is essential for such a transaction.

If you need to take a loan secured on the propertyin Spain, it would be sensible to use an independent broker to sort a mortgage for you. For example, it may be better for you to take a euro mortgage.