Vive la difference - navigating the maze of buying holiday homes abroad

As record numbers of Brits snap up holiday homes abroad, understanding all of the consequences before jumping in is essential. Issues surrounding ownership of the property, plus the potential impact of divorce, tax and death, all need to be carefully considered.

Ownership of the actual property is key. It is often governed by local law and it is advisable to consult a solicitor in the country where the property is being purchased. Some countries, for example, may even deem someone else to own a share of a property if they have lived there for a certain period of time.

If the property is being bought with someone else and you are not married, a pre-nuptial agreement is strongly recommended. Similarly, ownership of an overseas property can easily be incorporated in any agreement signed in this country, although it may be necessary to also have one drafted abroad.

Tax is also a critical area to ensure it isn't needlessly levied in both countries with buyers urged to always get advice about any tax they are asked to pay abroad.

When the purchase has taken place and all local law has been complied with, other legal aspects of owning the property should be considered including the outcome on the property if you died. It is often assumed that an English Will deals with foreign assets, but unfortunately this is not always the case.

Some foreign countries accept English Wills while others do not. Certain types of English Wills are not recognised in foreign countries, so if you rely on a domestic Will only, key assets could be passed to people who are not the intended beneficiaries, or the property could get bogged down in a host of complicated rules dictating where assets will be passed to. To avoid any future difficulties, it makes sense to draft a Will in England and in the country where the property is located.

It is vital that any solicitor, engaged in a foreign country, co-ordinates the Will being prepared with any completed in this country - to avoid the same assets being left to different people and conflicts occurring after death. Direct communication between both sets of solicitors is crucial and will ensure that neither Will gets revoked by mistake.

For more information on these issues, please contact Kate Godber on kate.godber@harveyingram.com or call 0116 257 6168.