Whether it’s a villa in Spain or a countryside home in France, buying property abroad is an exciting adventure — though navigating currency exchange can be complicated. That’s where Lumon comes in.
We help you get the best value for your money when buying a property abroad. From competitive exchange rates to fast, fee-free transfers, our specialists make sure there are no surprises. Let us handle the currency exchange while you focus on finding your perfect place.
Purchasing property in another country offers great opportunities, whether for investment, a holiday home, or future relocation. However, it also presents distinct challenges that require careful planning and informed decision-making. Here our some of our top tips when buying a property abroad:
Buying a property overseas in cash removes the need to borrow money. It could give you an edge over other potential buyers if the owner is keen to sell quickly and might help you negotiate a better purchase price. Budgeting and exchange rates are key considerations when buying with cash. It’s crucial to secure a competitive exchange rate before transferring what will be a large sum overseas to protect your budget.
If you already own a home, you could release equity in it by remortgaging. Releasing equity frees up some of that value as cash to help you fund an overseas property. Be aware that if you remortgage, your repayments will increase and you may be charged for early repayment, depending on the type of mortgage you have. However, you might be able to secure a better interest rate on your new deal, and it may be easier to secure a new loan with your existing lender.
Arrange an overseas mortgage with your bank in the UK, provided they service your chosen country or territory. This option has compelling benefits: you can secure a mortgage in your language and are less likely to experience translation challenges, and can save money on translation service fees. The process should also be quicker as a UK bank will have access to your credit history, which can increase your chances of securing a mortgage.
You can arrange a mortgage from an overseas lender through a foreign bank or specialist broker. They’ll have greater local market knowledge and offer access to more products and cheaper interest rates. However, as a foreigner, it can be more difficult to secure a mortgage overseas. It’s also worth noting that the value of your payments, which will be made in a foreign currency through international payments, will be exposed to exchange rate fluctuations, making the cost of your payments more unpredictable.
Our team of currency specialists have the local market knowledge to help you navigate the process of buying a property abroad. With our international real estate expertise, we’re here to help make the process hassle-free.
We pride ourselves on being able to offer exchange rates that can save you money compared to the banks, helping your property buying budget to go further.
Protecting your money is our highest priority. When working with Lumon you can rest assured that our customer-centric service is augmented by robust security measures.
Supporting our customers
It was quick and easy. Dealing with the same person throughout was helpful as they knew everything about my situation. Impressed by the speed of the transfer to Australia.
Whether you’re buying a property abroad, sending a one off payment or require regular payments, we’re here to help.
What many buyers don’t realise is that uncompetitive exchange rates – such as those typically offered by high street banks – could make an unnecessary dent in your budget. Using a currency specialist is a good alternative. Not only are the exchange rates on offer typically more favourable, but the guidance you receive can also help protect the price of your property from adverse movements in the currency markets.
Your tax implications depend on the country where the property is located and your country of residence. You may be subject to capital gains tax in the country where the property is sold and your home country, although tax treaties sometimes mitigate double taxation. Reporting requirements mean you may need to declare the sale and any income on your tax return in your home country.
British buyers are typically drawn to three destinations with enduring appeal: Spain, France, and Portugal. They are attracted to these perennial favourites because of the warm climate, coastal resorts, relaxed lifestyle, and budget flights from the UK. These countries offer a variety of destinations and properties that cater to all buying requirements: relaxing retirement, sun-drenched holiday home or investment opportunity.
Anyone interested in buying property overseas to boost their income, rather than to enjoy a new lifestyle, can make it a success if they buy with their head, not their heart. By ensuring you’re in business mode – not holiday mode – you can make a property investment in a cheaper market with rental potential. To overcome potential hurdles, like legal complexities, tax and currency risk, seek professional advice early.
Two options are available when arranging a mortgage to buy property abroad: you can use a lender in the UK or one in the country you’re buying. Securing an overseas mortgage in the UK requires a lender – typically a bank – with an international offering in your chosen country. Meanwhile, overseas lenders could offer extra products and lower interest rates, but a mortgage may prove more difficult to secure as a foreigner.
At Lumon we understand what it takes to help you buy property abroad successfully. We tailor our specialist overseas property service to meet your individual needs, so you can make international payments with confidence. We’re here to help you make the most of your budget with no hidden fees.
