Planning to move overseas and buy property? more than likely that you will require a mortgage; alternately you may wish to raise capital on your existing UK property. Otherwise you may be buying overseas for investment purposes; pure pleasure or retirement. The top five tips:

1. Plan your Finances realistically
Are you moving post retirement or will you rely on finding work? If you already have a home in the UK will you be selling or generating an income by renting? Are your investments stable such as cash deposits or more risky such as stock market investments? Importantly which currency will you operate in? pounds or the country you locate to. Make sure you plan for all eventualities

2. Tax (and Inheritance Tax issues)
Don't assume that moving overseas (or offshore) means you have no obligations to pay tax (or can easily hide from the issue!) Take professional advice from a suitably qualified specialist who also 'majors' in the tax laws of the country you are planning to go to.

Do find out about inheritance tax laws in your new country - for example are you allowed to leave your property to your spouse? The inheritance tax threshold may also vary dramatically and this will influence how you structure your tax domicility. Get expert advice!

3. Purchasing Property
Make sure you understand all of the laws that relate to property and land purchases in the country you are buying. The legal setup may differ dramatically to the UK in terms of what sellers are obliged to declare and to what extent a solicitor will ensure clear title etc. For example in the Spanish boom of the 70/80's many 'brits' were caught unawares on having purchased Spanish properties to find outstanding bills and fines such as the equivalent of council tax. But in worse case scenarios things can get much worse - ensure you research your target thoroughly.

4. Mortgages
Do not assume that you will have to get a mortgage from a bank in the country you are moving to - many of the most popular UK lenders provide mortgages on overseas properties. Additionally in many countries the culture of borrowing against a property is far more restrictive. Take the same stance as if you were buying here: is the mortgage flexible? what is the term? Most importantly assess and decide in which currency you are going to borrow - if you are generating income in pounds (for example) and repaying a mortgage in another currency you will have exchange rate issues that can be time-consuming and complicated. This can work in your favour but you may also end up effectively with bigger repayments.

5. Pensions & Health
Check your state pension entitlements, for example national insurance credit is not given after age 60 to those living overseas (as it is to those in the UK) If you are some way off retirement and intend to remain overseas find out about maintaining NI contributions. Again remember that if you receive a pension income in sterling you will need to convert it to the local currency and exchange rate fluctuations may work against you. If you are to rely on your pension income bear this in mind closely as (in effect) your income will vary.

Confirm that if you have private health insurance it will continue to cover you for your new country. Ensure that you are comfortable with the Health infrastructure (Hospitals, GP etc.) in your new country and identify whether you have to pay for some or all of the services (even emergency ones) as happens for example in the USA. If needs be investigate insurance to cover your new lifestyle.

How can we help? Find out now.
Call one of our team on 08704 28 28 29* for impartial and invaluable advice on all of the topics discussed here. We specialise in overseas mortgages and related advice.

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