Buying Property in Eastern & Central Europe
You have been on an enjoyable
holiday and seen a property you dream of buying.
Now this can stay as a dream or you take the plunge and look at the possibility
of buying.
· How practical
is it to get to?
· Are there cheap flights?
· How often will the rest of the family visit you?
· Are you happy to go to the same place every year?
· Have you thought of learning the local language?
· How close will you be to the local shops?
Getting a Mortgage
in local currency
Your home will be valued in that currency and depending on the strength of
the pound or dollar could be an advantage. However you are at risk that the
local currency could gain strength. You could use a company like ECU Group
(www.ecugroup.co.uk) which offers managed currency mortgages. The broker actively
manages the mortgage, moving it between currencies to enjoy the best rate.
Getting a Mortgage
from Home
You could extend your present mortgage (beware of losing both homes if you
are unable to keep up payments) or take out a second mortgage (normally maximum
of 75% of the property value)
Completion
Beware completion can take anything up to 20 weeks. Obtain advice from your
local solicitor before commissioning a foreign lawyer. If you are unable to
speak the language get a local legal secretary to attend your meetings. For
the moderate outlay, well worth the investment. It’s advisable although
not always practical to buy when the pound and or dollar is looking stronger.
Also be aware of local legal fees and taxes can be quite considerable. FOPDAC
Federation of Overseas Property Developers, Agents and Consultants are able
to list numerous lawyers to act for you.
Finally unless the property is near a Golf Course, Seaside
or Ski resort it is unlikely to increase very much in value. You must love
the place and if later it appreciates in value it will be a pleasant bonus.
– Good Luck
