The Buying Process

There are around five steps involved between identifying your dream new build property abroad to receiving the keys.

Step 1 - Initial Contact

An initial meeting or phone conversation with one of our property consultants to identify if property investment is suitable for you, what type of investor you are and what type of property and geographic location is suitable for you.

Step 2 - Reservation Fee

If you wish to proceed with the purchase you put down a fully refundable £2,000 reservation fee to take the chosen property off sale. This can be done before or after a Preview Trip (if you choose to visit the area).

Step 3 - Contract

You will receive a contract for your property in the post along with a letter from the lawyer you have chosen to aid you with your property purchase (see Legal Advice). The lawyers letter and contract detail the buying process, timetable and associated costs, plus plans of your chosen development and property.

Step 4 - Deposit

You have 28 days from the reservation date to put down a deposit (from 10% to 50% of the purchase price) plus VAT, plus 50% of the legal fees. This will be paid into the lawyers client account for security. If you fail to meet this deadline then we reserve the right to re-sell the property so it is important to have a clear idea where the funds for a deposit are coming from when you reserve a property. The £2,000 reservation fee will be deducted from the amount due at this stage.

Step 5 - Completion

Once your property is built (usually an approximate 18 month process) you will attend a completion meeting with your lawyer, the constructors lawyer and a notary. The balance of monies due can either be paid in cash or via a mortgage although the mortgage will not cover local VAT and legal/notary fees.

Legal Advice

Once you have decided to buy a property abroad you should find a good lawyer for advice and assistance. Your Place Abroad local legal experts guide you through the purchase of foreign property including any fees and taxes that are applicable.

Lawyers

The lawyer will ensure that the property has no associated debts owing and that the investment is safe and secure.

Your lawyer will also arrange connection of services such as gas, electricity and water and will also liaise with you on setting up direct debits or standing orders.

The lawyer will detail the exact costs associated with a specific property purchase, but as a general rule of thumb, add 10% to the purchase price for costs associated with property purchase in Spain (slightly less in Tenerife and Portugal). This is made up of:

IVA (VAT)
Stamp Duty
Lawyer
Notary and other disbursements

7%
1%
1%
1%
----
10%

In Spain and Tenerife VAT is payable on the deposit payments but is recoverable if you assign your contract before your property has been built. In Portugal VAT is payable on property completion.

Under FOPDAC regulations we have to recommend two independant firms of lawyers. We are delighted to offer you the choice of either Rowe Cohen or Rowlands both of which are dynamic, national law firms.

To allow for complete client security:

All deposits are lodged with our lawyers
All development contracts are forwarded to our lawyers prior to release for their approval

Rowlands

Rowlands are a Manchester based firm with 11 partners with offices in Spain and Portugal.

Visit their website, www.rowlands-solicitors.co.uk

Rowe Cohen

Rowe Cohen are tipped to be a top "rising 50" law firm this year and has offices in both London and Manchester and has 16 partners.

Visit their website, www.rowecohen.co.uk