Tips for buying a holiday property overseas

Woman in yellow dress overlooking ocean in Greece with a small table full of breakfast foods.

For most of us, there often comes a point during that perfect holiday when the thought of giving it all up and moving overseas crosses our minds. And for many property owners in the UK, high average house prices have made the prospect of buying a home overseas more of a reality due to the relative value of property in other parts of the world – undoubtedly one reason that around 1.3 million Britons live in the EU alone.

How exchange rates impact buying property overseas

Yet buying international property introduces the uncertainty of exchange rates. For those buying and maintaining a property abroad, uncompetitive exchange rates, in addition to constant fluctuations between currencies, can end up costing thousands of pounds more and potentially negate some of the financial benefits of selling up and relocating. Currency movements can be quite significant: On 19th April last year for example, a Spanish property bought for €250,000 would have cost around £209,000. By the end of August however, the same property would have cost around £231,500 – over £20,000 more due to exchange rate movements between the pound and the euro.

Accessing bank-beating rates

We have partnered with currency experts moneycorp to offer readers Telegraph International Money Transfers. The service provides access to bank-beating rates which could save you a significant sum – on a property costing £250,000 the savings could add up to more than enough to cover the legal fees, or even pay for renovations to your new home.

Money-saving guidance

You will also be allocated a personal account manager who can provide expert market guidance and assist you with every aspect of a transfer. For example, they might explain the specialist tools available to help protect you from rate movements like those mentioned above, such as a ‘forward contract’ which allows you to secure an exchange rate for up to two years. This could be particularly useful in helping you budget ahead for a property transaction, as the protracted nature of the process means you could protect yourself against  movements in rates between making an offer and settling the purchase. (Note: a forward contract may require a deposit). In the current economic and political climate, with rate movements being unpredictable and impacted by any number of unexpected events, access to such a service could prove invaluable.

For transfers at the best exchange rates, why not join 10,000 Telegraph readers sending money overseas fee-free online, using a secure platform with the Telegraph International Money Transfer Service

TTT Moneycorp Limited, which is authorised by the Financial Conduct Authority under Payment Service Regulations 2017 (reference number 308919) for the provision of payment services.

The above article was created for Telegraph Financial Solutions, a member of The Telegraph Media Group. For more information on Telegraph Financial Solutions click here.