Guide to buying

Property ownersip by Britons overseas has soared over the past decade, but the pitfalls involved in turning dreams into reality remain. But whether you are buying in Athens or Alicante there are some simple rules to follow that can make the process go as smoothly as possible. The process of buying a holiday home on the continent can be loosely broken down to five steps...

 1. Do your homework

If you are seriously considering buying a property abroad you need to do research – and a lot of it. There is no excuse for not having the information available, as the internet can provide you with all the information you need at your fingertips.

Don't rely on information supplied by property sales companies, but do you own research. Compare the countries and regions you are considering and see what is on offer. You may be swayed by a wealth of information and advice by websites owned by a property-related businesses, trying to get you custom. They however could be glossing over a lot of problems which would only show themselves after you buy. Look at community websites run by expats or those who have holiday homes in the area you are considering, these types of sites are more realistic.

Use internet forums run by people who already own oversea properties. Reading about the experiences of other property owners will give you an idea of the potential problems of buying in your chosen country, and any extra expenses you're likely to incur.

For a fee, you can use one of the many companies that will help you buy a home on the Continent. If you choose to go down this route, ensure you investigate them carefully before letting them have your hard-earned cash as they're not all as reputable as they may first seem.

 2. Arrange your finances

There are a number of different ways in which you can fund the purchase of a home abroad. Remortgaging a British home to release cash to buy a second home is one of the most popular methods. Keeping all your borrowing with a single lender is many owners preference, in this way, all the financial repayments are made in the currency you are paid in.

Many banks offer special overseas mortgages. For instance, Abbey uses its link with parent company Banco Santander to offer a Spanish mortgage, paid in euros. You can look into specialist overseas mortgage brokers, where it is possible to borrow in a variety of countries. Bear in mind currency fluctuations will affect your repayments. Read more...

 3. Visit the area

It is essential to get to know the area you are considering, and a number of visits before buying is ideal. Visit at different times of year, you may find a liveley scene in the peak season, but it is quiet off-season, which will restrict your potential renal income. Investigate the area on your own, without any pushy agents, then make plenty of bookings to view properties. Don't fall for the hard sell, and ensure you get a cooling off period if you do commit to buy.

Don't get carried away with the romance of a particular Spanish villa. Approach all purchases with the same caution as you would with a house back in Britain. Always ensure you get the appropriate checks and surveys done before handing over your money.

 4. Use Legal experts

Many countries have different property laws and regulations to Britain, so it's important that you find a good, solicitor who does not have connections to your vendor, estate agent or property developer. They should be used to dealing with overseas purchasers and be fleunt English speaking, so when you and go through all the possible fees, taxes, insurance issues, local authority rules and any possible pitfalls you understand everything. As the laws and procedures involved with every aspect of the housebuying process can be different to those at home, make sure your legal firm's local knowledge is up to date.

Local tourism offices can give you lists of solicitors and it's important to visit a few before choosing one which is suited to you.

If you are buying "off-plan" or have bought a plot of land for a "new-build", make sure all planning permissions are covered and find a good architect and local builder. Again, the tourist office can help. If you think the service you are receiving is unsatisfactory, say so and explain if things don't improve you will go elsewhere.

 5. Make an offer

Set a maximum price you will pay and don't go over it when you have found your ideal home. Once your offer is accepted and have instructed your solicitor, make sure you keep tabs on them and the estate agents. Request regular updates and ensure you promptly fulfil all the requests they make.

Ensure your funding is in place and consider using a currency specialist, such as HIFX or Moneycorp, who can offer better rates and the opportunity to agree a purchase cash advance at a set rate.