The Falling Value
of £sterling against the Euro
For whatever the reason
the value of the
£sterling has fallen dramatically against the Euro.
How
will this affect Moraira Area property values?
Strangely
enough it will make little difference and there would be no price
increase in most cases.
It has to be
understood that the Moraira area real estate offer is mainly resale and most
property is sold by British people who intend to repatriate the funds.
Hamiltons of London always quote prices in Euros, but that is only for simplicity, and any
sale is affected by the offer to buy and the eventual Private Contract.
If we consider a Moraira property
that first went on the market early in 2006 at 350,000 Euros. £sterling
then was 1.48 Euros and the vendors would have received £236,486.
Providing that their intention was to repatriate the funds to the UK and
they were still quite happy with this amount then the actual Euro price
had fallen, by June 2008 297,972 Euros at 1.26 to £1.
Spanish law permits property sales in any currency
(as long as the Euro amount is declared) and an account can
be opened with a Spanish bank in any currency.
In this case the vendor would simply open an account in £sterling
especially for the sale.
The buyer would then pay for the property with a certified cheque drawn on a
UK bank, a copy of this cheque would be included in the Escritura and both
buyer and seller would state the Euros equivalent for the purpose of the
sale.
This certified cheque would then be paid into the vendors Spanish account
and transferred to the UK.
Even in the
case where there was a Spanish mortgage, a £sterling amount could be paid to
the vendor.
Enjoy your search for Moraira property for sale!
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