British buyers are saving £1,000s on Brexit Spanish property deals registered during the month of November 2016. The pound is recovering from the UK’s shock Brexit decision with recent gains against the Euro that have saved more than £14,000 on typical purchases.
Due to the sterling recovery, buyers now need £14,000 less on a typical Spanish property purchase of €300,000 to secure their recent deals at the notary office. That’s enough to furnish and equip an apartment or contribute to the buying costs.
The collapse of sterling was a “doomsday” forecast by the Project Fear remain campaigners during the EU referendum. This is being discredited now Sterling is sustaining its improved position against the Euro. Jobs, consumer confidence and exports are all reported to be up in recent official surveys.
EU remainers warned the value of the pound would plummet and many potential buyers of Spanish property buyers backed off – until this month’s partial recovery. Some of them have now decided to renew their interest in Spanish real estate. Others, aghast at the prospect of the UK outside the EU, have decided to buy a property in Spain and explore Spain’s Golden Visa scheme. This provides qualified residency for investing €500,000 in property there.
To help combat currency fluctuations, long established Spanish property brokers, Walker Property Spain have recently launched “Purchase Ready Plan”. This is designed to help buyers snap up bargain villas and apartments. With all required paperwork completed buyers can move immediately take advantage of beneficial currency rate changes. Within the Purchase Ready Plan (PRP) buyers swap their pounds into euros “at the optimum moment in time” and deposit the funds in a Spanish bank account. The cash can be used for a deposit with a euro mortgage that can be pre-approved within the Purchase Ready Plan.
More Brexit benefits for buyers in Spain…
UK-EU negotiations are expected to include a reciprocal deal that allows ex-pats in each territory residential status. As there could be a cut-off date, anyone thinking of relocating might think sooner rather than later would be a good idea.
Recent weeks have seen fixed interest 20 year term mortgage deals on offer from Spanish banks. They have low interest rates of around 2% and if inflation does strike the UK or the EU, this effectively might cancel out the interest paid over.
With solid equity in a Spanish property, owners have a useful family asset and an income in the booming holiday lets market. If rents and running costs are maintained in Euros then currency fluctuations can be avoided.
Because of Brexit uncertainties it is likely there will be further currency crises, but get Purchase Ready – and Track the pound to buy or not to buy>>