Buying property in the Britain is a fast, cheap, and efficient process. ( Well, most of the time anyway).

Buying overseas means raising a mortgage, plus doing the paperwork, and paying the fees and taxes.

You can raise money either secured on the property you wish to buy, or on your own present house ( if you have the equity. For example a house worth £120,000 with a mortgage of £20,000 has £100,000 of equity, and this would be plenty should you wish to buy an overseas property of up to £50,000 - £60,000).

You can normally borrow up to 70-80% of the value of the property providing security ( i.e. yours or overseas).

You can borrow the money either in Sterling or the foreign currency.

Be aware that if you borrow in the foreign currency then if Sterling falls your payments will rise. You may also be subject to the interest rates prevailing in that country so in a worst case scenario you can be hit by both rate rises and Sterling falls.

You will normally be expected to have the income needed to support the loan, ( though this need not be earned income). Applications which rely on rental income to meet the costs will restrict your options, so make this clear from the start if applicable.

You are in the hands of your UK solicitor. Find a good one. The test of this is to call them up and ask them first of all if they have done this job before in the country in question. Then tell them that you would like a letter explaining all the procedures, costs, and time implications.

Do some Internet research and compare what the solicitor says with what these articles say. It is also worth looking in the local bookshop. Libraries less so - information changes quite frequently.

The Local Process can be very complex and will vary from country to country. The only rule of thumb is that it will almost certainly cost more than to buy the same price property in the UK.

In some countries a civil servant ( Notary ) handles the whole process for both sides. In others the taxes can amount to a sizable proportion of the property price ( adding 5,10, even 20% to the final bill, none of which will normally be included in the mortgage, but helps hold down the price of property to affordable levels).

Probably the most important issues to be clear on from the start are:-

- at what point does your offer tie you into completion , or at least costs?
- can you get full surveys and background?
- what are costs of purchase ( taxes, fees, et al)?

Ownership costs

Ascertain the local property taxes, ( which can be much higher than UK Council Tax, especially in countries where income tax evasion is common), insurance position, maintenance costs and , for those leaving the property empty for periods, security costs.

Downside - hidden dangers

Be a pessimist. In most of the world the standards of civil conduct are not as transparent as in the UK, and dubious property deals are common. So find an expert to ask questions, check and double check all information.

1) Is the area quiet and peaceful. A bay of tranquility untouched by development? In a poor country? Then expect that one day it will be discovered, and developed. You will not stand a chance when up against locals who know the ropes and want to build hotels and resorts next to you, or in your view. Then of course there will be the access roads, main roads and airports.

Buy the dream, but accept that the locals do not view their scenic lack of development as in any way romantic, and if they can change it, they will.

To avoid development look at quiet locales in National Park areas of developed countries. Here the protection of quiet environments has a higher value and the status quo is more likely to prevail.

If you want to be confident that no surprises lurk a couple of years hence, buy into an existing development.

2) Clifftop and slope properties.

Read up on your basic geomorphology, it could save you watching your house collapse.

Cliffs - these are eroded by waves, and for rates of erosion you should contact an expert ( a geologist in the nearest University would be a good place to start). Personally ( as an ex geology student) I would avoid cliff properties unless built directly on solid rock, and sheltered from the main wave impact).

Slopes - slopes collapse in slow motion, a few millimeters a year. Avoid slopes unless you can be sure that the foundations are solid, ( e.g. built on a concrete base), and in any event get a proper full independent survey.

3) Local Floods

Back to the Geomorphology.

In most place where Brits think about buying homes in the sun flash flooding is a fact of life.

It is avoided by living on high ground, but this is also frequently the driest, so not good for gardeners. Lush areas , as well as obvious valleys, are a clear risk, but not the only ones.

Broadly speaking ask about flood history ( a local historian, not the vendor). If your property is vulnerable then plan accordingly ( which does not always mean not proceeding with the purchase, especially for an older property built with flooding in mind. It might simply mean, for an older property, keeping a ground floor of stone flags and movable furniture, so that in the event of a flood warning it can simply be moved upstairs out of danger).

4) Land Ownership, Access, Water Rights etc.

It is not unknown for cowboy builders to build in contravention of local planning laws, leaving the owner to pick up the pieces, ( of a possibly demolished villa).

5) Structural surveys and pest problems, and insurance.

Not only get a full survey done, but also seek to find out about the perils of nature, and which are, and not, insurable. For example in the Southern USA termites can do serious damage to the wooden buildings of that area, and in other places the insurance companies may exclude Hurricanes and Earthquakes unless extra premiums ( which may be 2-4% of the house value, per annum) are paid.

6) Courts and Legal battles

The logistics and costs of fighting a court battle in a foreign country will make it pointless for most people most of the time. Avoid this by spending in advance on proper professional help.

To speak to a Overseas Mortgage Expert click here.