Essential Guides & Advice Buying A Second House Overseas

Date Published:

02/06/2008

The costs of having a second house abroad can quickly turn a dream retreat into a financial nightmare. Here's what to expect so you won't ever have to come back to earth with a crash.

In an independent and comprehensive survey published in November 2006, The Institute for Public Policy Research (IPPR) estimated that at least 5.5 million British citizens are living permanently overseas. Additionally, it approximates that a further 500,000 live abroad part of the year - either because they work in other countries or have second homes.

If half a million seems like a lot of people, Saga, the over '50s organisation, predicts that by 2008 no less than 3.12 million of us will be proud owner of a property abroad, realising many of our dreams to retire to the sun or simply escape the British weather for the odd weekend once in a while. Popular destinations include Spain and France - far and away the leading two - in a recent Mintel study.

While the appeals of buying abroad are plenty, doing so is often far from hassle free. You can, however, help yourself to make matters easier by doing your homework thoroughly before you buy. Firstly, bear in mind that not only will you need sufficient finance to pay a property's asking price you will often need to budget up to an additional 10% for purchase costs.

Yes, depending where you buy in the world, notary's fees (in most foreign countries a notarial system is practised, using notaries, public officials who oversee a property's legal documentation), solicitor's fees (always but always engage the services of one), estate agent's fees (in many countries abroad the buyer pays or contributes towards fees), and some form of purchase tax (known as stamp duty in the UK) will have to be paid.