Halcyon Daze

With numerous television programmes and press articles extolling the virtues of buying property abroad — either as a holiday home or as a permanent residence — it is not surprising to learn that 125,000 Britons took the plunge in 2002. But there are many pitfalls awaiting the unwary purchaser for whom the idyll of a life of sun, sea and sangria can quickly turn into a horror story of epic proportions.

That is the warning from James Raskin, a Bristol solicitor specialising in foreign property purchases and inheritance work, and a consultant with the firm of Sisman Nichols.

For some reason it seems that we lower our normal defences when we pursue these dreams and, in many cases, end up doing things we simply would not contemplate if we were back at home," he says. "Strange things seem to happen, as if the buyer is in a daze from which they only recover when they return home — and suddenly realise they need help".

It can often be too late by then, with substantial deposits forfeited and properties lost. The dream turns into a nightmare.

Horror stories abound. One lady decided she wanted to cancel her purchase after deciding Spain was too hot (she had previously only been to Spain in the winter), another couple discovered their villa had effectively been stolen from them by the rogue ’estate agent’ who handled the transaction (they had been introduced to him in a local bar) and other owners of property in the province of Valencia awoke to discover that most of their land in excess of one acre had been taken by property developers who were taking advantage of legislation introduced to encourage tourism in the area.

"Buying a foreign property can be a rewarding experience if done properly," says James, "But the buying and selling practices differ widely from country to country and have little in common with those in Britain, so it is essential to do your homework and seek professional advice before committing yourself to any course of action

Be clear about the type of property you want and it’s location; do as much research as you can before venturing abroad on viewing trips; and never sign any documents without taking independent legal advice".

The last point may seem unnecessary but, according to James, it is quite astonishing just how many buyers have signed up to agreements on the basis of assertions made by the property rep or estate agent — in some cases they have not even been able to read the documents they have signed because they were not translated into English!

By far the most popular countries for would-be purchasers are France and Spain. Some 100,000 Britons bought permanent homes there in 2002. They also happen to be among the most bureaucratic of the EU countries when it comes to property sales. And fees associated with property purchases can be significantly higher abroad than in Britain.

"Buying a house in France or Spain usually entails greater additional costs than those we are used to at home," James reveals. "Continental estate agents often charge their fees to the buyer of the property as part of the purchase price. Notaries, who act like solicitors but who do not give independent legal advice, charge a scale fee which is generally paid by the buyer with transfer tax, stamp duty and VAT (where this applies)."

Consequently, one UK building society suggests that you budget for at least 15 per cent of the property value to cover fees when buying in France and 10 per cent of the property value when buying in Spain.

These are all factors that should be fully understood up front but often come as an unwelcome surprise.

The keys to success, it seems, are research and professional advice. But it also helps if you can ignore the rapturous effects of the sun and sangria.