Property Buying Guide
Buy to Let Advice: Buying Property Abroad
The advantage of buying a property abroad is that the property can then be sold and the equity used for a deposit on a UK home. If rental returns can be guaranteed by such as lease-back schemes (where you are practically guaranteed a rental income to cover any mortgage), this option becomes all the more affordable.
Consult an overseas mortgage specialist to find out how much you could borrow.
To buy property abroad you will need a typical deposit of 25% of the purchase price as well as accounting for homebuying costs and British and overseas legal fees. It may still be hard to raise such a deposit. There is more about raising a deposit and how parents might help with this on our site.
If you want to transfer money to or from abroad for an overseas property you will need to employ the services of a currency exchange service. We have teamed up with Moneycorp who offer an extremely competetive exchange rate.
You will not be able to secure a mortgage with a UK lender against a property that is built on overseas soil. Instead you will need to arrange a mortgage with a lender operating in the country in which you are buying.
How much you can borrow will depend on your existing liabilities. Typically, your entire outgoings such as rent, debts and bills – as well as your foreign mortgage repayments – must not exceed 40% of your net income. Although this sounds like a low 'allowance', if you are sensible with your UK rental outgoings and head for a county where property prices are low, the mortgage payments will not be onerous.
More buy to let advice:
Buy to let – for first time buyers and everyone How much can you borrow? Buy-to-let mortgages The tax situation The hidden costs Finding a suitable property Your responsibilities as a landlord Letting agents Tenants Furnished and unfurnished properties Buy-to-let useful websites
Useful Links:
www.arla.co.uk
www.cml.org.uk/
www.landlords.org.uk/
www.direct.gov.uk/
www.rics.org.uk/
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