Thousands of people decide to sell overseas property each year, however the best way to receive the proceeds of the property sale is often not properly considered, meaning the amount actually received by the seller is significantly reduced, often by many thousands.
If you are selling your overseas property, it is likely that the proceeds of the sale will be received in a foreign currency and you will need to convert the currency in order to receive this in to your bank account in your home country.
The rate of the currency exchange can have a massive impact on the overall amount you receive however it is often a forgotten aspect amidst all of the stresses of selling a property overseas.
When receiving the sale proceeds from overseas many people often just blindly entrust the transfer to their bank allowing them to convert their payment into their home currency without considering the rate offered by the bank and the impact this could have on the overall amount received.
Exchange rates are however one of the ways in which High Street banks make enormous profits at the expense of their customers.
Their rates tend to be very uncompetitive and may also be accompanied by commission charges just to transfer the money. This rarely achieves the best result for you and can often end up unnecessarily reducing the amount you finally receive by a significant amount.
What is the best way receive the proceeds of a property sale from abroad?
The most cost effective way of receiving money from overseas is to use a recommended currency exchange specialist to assist you with transferring the money and exchanging the currency rather than receiving or transferring the funds directly into a high street bank account.
The reason for this is because currency exchange specialists typically offer currency exchange rates that are 3-5% better than high street banks meaning 3-5% more of the sale property proceeds will be preserved. For example, if you were transferring the equivalent of £100,000 you could lose up to £5000 of the sale proceeds by transferring the funds directly with a bank and allowing the bank to convert the currency.
In addition to this, high street banks often charge fees and commission just to move your money from overseas. The service of a good, recommended foreign exchange specialist however is free.
The reason that currency specialist companies are able do this is due to the volume of foreign currency transfers they make and the fact their sole aim as a business is to offer superior exchange rates compared to the banks.
Currency specialists can also advise you about the timing of the currency transfer to help you make the most from the money. They can arrange to receive the funds in the foreign currency and then arrange to convert the funds or any part of them at a time which maximises the value of the property sale funds by taking into account currency fluctuations.
Currency Specialists Vs High Street Banks
You are selling your property in Spain for €200,000 but you ultimately wish to receive the sale proceeds into your UK bank account. You will therefore need to convert your €200,000 into Pounds Sterling.
|High Street Bank Rate||Currency Specialist Rate|
|€200,000 @ £1.10||€200,000 @ £1.14|
|Amount received in £||£220,000||£228,000|
By using a currency specialist instead of a bank you would have received £8000.00 more for your property.
As set out in the example above, a small amount of research and planning can make a vast difference to the amounts actually received.
Using a recommended currency exchange specialist is not only cost effective but also very time efficient. You can set up an account and sent a payment within minutes. It is simply a case of transferring funds to a this separate account where the money can be exchanged before it is forwarded on to your desired bank account.
It is recommended that anyone selling a property abroad contacts a currency specialist as soon as possible after you have arranged the sale of your property. A good currency specialist will be happy to give you some no-obligation information about the best way to deal with the currency exchange and how they can help.
For details of a recommended currency exchange specialist* and to discuss how they can assist you, please get in touch with Worldwide Lawyers on 01244 470339 or email us at email@example.com.
We can also assist should you require details of a recommended lawyer to help you with the sale of a property abroad.
*Please note: All Currency Exchange Specialists recommended by Worldwide Lawyers are registered and authorised by the Financial Conduct Authority as well as fully regulated by HMRC.