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There has never been a better time to invest in the overseas property market than today. The global economy has recovered to a great extent from the Great Recession that began in 2008. The shock of the Brexit referendum too has worn off and things are back to normal for the most part,
However, you will probably find it difficult to finance a deal for an overseas property in these times unless you pay in cash for the full value of the property. There are not many who can manage an all-cash purchase in the overseas property market, where an average property costs anything from 100,000 Euros to 300,000 Euros.
How about securing a mortgage? If you are buying a property in, say, France, you won’t get the same terms on the property as what is available to residents of the country. You may be required to make a down payment of as much as 50% on the property, which is certainly more than most people can reasonably afford.
That’s not the only problem. In countries like France and Spain, you will be required to take out a life insurance policy same as the amount of the mortgage, for which the bank that gives you the loan is named as the beneficiary. Now, not everyone can do this as insurance providers in many countries restrict older adults from applying for insurance.
So, you’re left with the next best option, which is to use cash. Can cash solve your problem? Yes, there is nothing to beat cash when you want to buy or sell overseas property. Cash can help you get any home you want much faster and gives you an edge over other buyers who cannot afford an all-cash payment.
If you cannot afford a cash payment, you may want to try to get a mortgage on the overseas property from a British bank. You can also try to get a mortgage from an international bank with branches both in Britain and the country where you want to buy the property from.
Remortgaging your UK property is another way to raise cash. It gives you the money you need to make an outright offer. However, it will work for you only if you already have a great credit rating, and if you have no other mortgage on the property. Lenders in the UK are still wary about financing overseas purchases, but it is certainly worth a try.
Most banks in the UK offer loans for purchases in overseas properties in France and Spain, where they already have a presence. But they may not be so willing to finance a deal in Bulgaria or Cape Verde, or for that matter other exotic locations. Still, it is worth a try.
However, there are occasions when you should not pay by cash for a property. You should not, for example, pay cash for a property which is still under construction. It just does not make sense to buy something that hasn’t been built as yet with a cash payment.
There’s a simple reason for this – there’s always a chance that the developer will not be able to finish the project on time. When you have already paid him in cash, you will have no leverage over him. After all, it is your money and you should guard it diligently.
Contact us today to get cash for your overseas property.