Somewhere abroad: your questions answered

Martin answers your e-mails

All week here on Breakfast, we've been bringing you stories of people who've taken the plunge and decided to buy a home abroad.

To round off our special series, we brought in the BBC's property presenter Martin Roberts - you may remember him from Homes Under the Hammer - to answer some of the scores of questions you've e-mailed to us.

We have put recordings of all three interviews with Martin on this page, because they cover different subjects.

Catch up with Breakfast's full series: Somewhere abroad

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Q - What are the Inheritance and Tax laws in Spain when a property is bought jointly, and one partner dies?
Margaret Nicol , Edinburgh

Most importantly, you need to have a proper will which must be authenticated by the necessary Spanish authorities. Otherwise, it's not automatic that assets will be passed on to your spouse. Once your will is validated, inheritance tax laws relate to the person's country of origin. So, you should seek specialist advice.

Q - What is the legal position on Spanish 'land grab'?
John Moore, London

Spanish land grab in one region of Spain - Valencia - and the general consensus is that it's highly unlikely to be implemented elsewhere in Spain. Land which was "grabbed" was designated Rustico - ie for agricultural use - and the problems occurred when it was converted to urbanisation land - ie open for development. Your lawyer should ensure that any property you buy is for urbanisation, so there's no danger of land grab.

Q - How risky is it buying a home in Northern Cyprus?
Ken Black, Banbury

The EU does not recognise Northern Cyprus as a country and as such the current ownership of land there could be disputed. Any existing or new built properly should be thoroughly researched by a specialist international lawyer before proceeding with any purchase.

Q - If Montenegro doesn't enter the EU how will it affect house prices there?
Sasha Ilich, Richmond Surrey

When you're considering buying anywhere, think of the bigger picture and why you're buying. Montenegro is unlikely to enter the EU before 2012 so until then a purchase there should be based on other reasons than purely financial ones. Is it a nice place to visit and will it improve your quality of life? As a rental investment consider how long the holiday season lasts, availability of budget flights and rental and property management

Q - Are prices in Spain higher for foreigners than locals?
Richard Fowler

Only for people who don't do their research properly. You wouldn't buy in the UK without thoroughly checking the market for best locations, current deals etc so why should it be any different when buying abroad? Locals have the advantage of knowing the area, so you should visit and do your homework before you buy anywhere.

Q - We have a mortgage in France, but are having difficulty transferring money regularly between our account in the UK and one in France. Can we avoid paying high charges?
Louise Betteridge , Dorset

Try to do as many transactions as possible in Euros. You can have a Euro account in a UK bank and as long as Euros are paid in, your outgoings are paid in Euros and your name is in Euros, then you won't pay commission on currency conversion. If you do need to convert sterling to foreign currency, shop around for the best exchange rate deals. Look on the internet, as those will be better than any booths at the airport

Q - I am thinking of buying a property in southern Spain. How can I find reliable, trustworthy and competent legal representation? Should I use a Spanish or UK firm?
Heather Roberts, Wiltshire

Both: use a UK law firm which has expertise in foreign property purchase to oversee the initial part of the process, but you'll invariably also need to have a locally-based lawyer to complete the purchase. Specifically for Spain, it's a legal requirement to have a property purchase overseen by a Spanish lawyer.

Q - Where would you recommend investing in a home abroad for leisure and investment purposes?
Paula Cowey, Co. Durham

There's an assumption that if a location is new, it's likely to be a bargain and a good investment. Again, stick to the basic principles: think about what you're buying and what you are trying to achieve. If it's quality of life, then anything goes, whether it's Florida, Bulgaria, Estonia, Morocco. But if you're buying for investment, you need to think about year-round rental, accessibility, good infrastructure, security etc.

Q - what about Self Invested Personal Pensions (SIPPs): can I buy a property abroad and count it as part of my pension portfolio?

The rules on SIPPS haven't yet been finalised - but this could be a very exciting development. You'd need to get proper advice from a financial advisor - and they'd probably only consider letting you invest in established locations, like Spain.

More on SIPPs

Buying a property abroad is an expensive process. Don't make any decisions based on this advice alone - and before you make any big commitments, please make sure you get proper professional advice from lawyers and surveyors in the country you'd like to invest in.