June 23, 2007
Buying Property Abroad - Hot Topics Q&A
Q. I'm about to purchase a holiday home in Galway. How do I finance the purchase and what options do I have?
A. This is a great question! Especially as more and more of us are looking to purchase abroad.
The good news is that you have various options. A couple are:
1. Use equity from your main residence and buy the holiday home outright. You should be able to apportion the debt from your main residence to the holiday home and qualify for tax relief on the interest payments (check with your accountant and local tax office). Also, if you have an offset mortgage some lenders will allow you to create a separate offset debt account so that you can clearly demonstrate what the money's been used for (transparent for the tax office).
2. Obtain a mortgage from a lender in ROI. The best bet is to speak to a specialist mortgage broker who will be able to source the best deal available.
One contact is Conti Financial Services. You can call them on 01273 772811.
http://www.mortgagesoverseas.com
It's important to be aware of the tax rules surrounding holiday homes (UK only). You can read all about it at HMRC's website:
Filed under Property, Q&A by Ray Prince
