Lifestyle, sun, relaxation or retirement - many Brits dream of a home in Portugal and Brexit might have delayed your plans. Facts are scarce and it may still take two years to ratify terms from the moment Article 50 is invoked this month. Early preparation will help minimise risks - so you can still achieve your goal.
Budget for currency fluctuations - you may have to reconsider your property choice according to your ‘new’ budget if the pound weakens. You could delay in the hope the exchange rate improves, but there is no guarantee when this will happen.
Togofor-Homes can help by recommending currency exchange companies, who can provide solutions, such as fixing an exchange rate using a ‘forward contract’ allowing you to purchase at today’s rate guaranteed for 6 or 12 months so you don’t lose out.
If you need a mortgage - consider all the options. Remortgaging your UK home may also run the risk of currency fluctuations. A mortgage broker can assist you to apply for a loan in Euros from a bank in Portugal. Interest rates in some EU countries are very low and long-term fixed rates are available so borrowers can feel secure. Have your pre-approved mortgage ‘in place’ so you can make an offer in good time, properties are moving very quickly.
Choose to buy where there are good transport links e.g. easy-access to airports/airlines, roads, or railways. Do the usual checks for buying overseas - these change little because of Brexit. Inheritance tax, capital gains tax and tax paid on rental income already vary country-to-country within the EU; check what these are when you begin your search.
Basic advice: always choose a reputable and independent lawyer, use a licensed and well-established real estate agent and factor into your budget legal fees, property registration and moving costs.
Contact Togofor-Homes Lda, we can put you in touch with the right people to give you financial and legal advice – with over 14 years’ experience in the Algarve, we are here to help you find and purchase your dream home.