If you’re looking to follow in the footsteps of Amanda Holden and Alan Carr by buying a property in Italy, there are a few key things you need to know in advance.
The celebrity pair were seen buying an older property in Tuscany and renovating it as part of the second series of their BBC One TV show, Amanda and Alan’s Italian Job.
Whether you want to embark on a full-scale renovation or skip straight to sitting on your own completed patio in the Tuscan sun, overseas property expert Simon Conn explains what you need to know before you buy.
Tuscany: Properties in the central Italian region are popular with overseas buyers
Buying a property in Italy is a similar process to buying in Britain. However, Mr Conn says there are some specific pitfalls that buyers need to know about
This includes not taking part in a practice known as ‘under-declaring’ – scroll down for more details – as it is a punishable offence in Italy.
You’ll also need to be aware of the different mortgage landscape if you need finance to complete your purchase.
Mr Conn explained that the minimum deposit required for a home loan in Italy is currently 40 per cent.
The current series of Amanda and Alan’s Italian Job is the second that they have done together
This is significantly higher than in Britain, which offers several deals for those with a much lower deposit of 10 or even 5 per cent.
This 40 per cent deposit in Italy would require a minimum purchase amount of €165,000 and a minimum loan of €100,000 – the equivalent of £141,000 and £85,000 respectively.
Mr Conn said: ‘You might want to imagine sitting in the Italian summer sun with a glass of wine in your hand on your own balcony, but in order to get there, you need to go through the buying process – and there are some things to remember to avoid any pitfalls.’
Top tips for buying in Italy…
1. Independent lawyer
Mr Conn’s top tip for buying in Italy is to use a lawyer who is not working for the estate agent or developer.
He says it is important to make sure you use a lawyer who is independent and has no conflict of interest with the agent or developer who you are buying from.
2. Notary
You’ll also need what is known as a notary, which is separate from a lawyer.
The notary’s role is only to identify the parties of the transaction, draw up the final contract – called a rogito – and to collect the stamp duty on behalf of the Italian Inland Revenue.
3. Legal advice
Mr Conn warns against ever entering into a legally binding agreement such as a purchase proposal called a ‘proposta di acquisto’ without having received independent legal advice.
He explains this is crucial when buying an off-plan property and during inspection trips.
4. Guarantees
Buyers should also always insist on obtaining a guarantee (bond) when buying from a developer as the guarantee is compulsory in Italy.
However, some developers may try to put pressure on you into agreeing to waive this requirement.
5. Additional costs
Similar to buying in Britain, it is important to budget for additional costs on top of the purchase price.
For example, there are legal fees and stamp duty to consider factoring into your final budget.
These will vary depending on whether you are a private individual or a company and if the land is agricultural, so check with your Italian lawyer, surveyor and notary.
6. Power of attorney
When the sale completes, it is compulsory for both the buyer and seller to be in attendance. However, Mr Conn says it is possible for the buyer to avoid the cost and potential inconvenience of flying to Italy.
He suggests that this can be done by granting a power of attorney to your lawyer or someone you can trust, but never to an estate agent as they will be in a situation of conflict of interest.
7. Never ‘under-declare’
One of the most serious pitfalls to avoid when buying a property in Italy is under-declaring the purchase price, as this is a punishable offence in Italy.
This is where buyers try to avoid paying the full selling price to avoid stepping into a higher stamp duty threshold and hence paying higher moving costs.
Under-declaring is done by either paying part cash for a property, or by ‘hiding’ part of the purchase price by claiming it is paying for fixtures and fittings.
8. No charges
It is important to confirm with your lawyer that there are no mortgages, liens or charges on the property.
9. Originating contract
Always ask for a copy of the originating contract well in advance. This will show who is the legal owner of the property you intend to purchase.
Three homes for sale in Tuscany
If you’re looking to follow in the footsteps of Amanda Holden and Alan Carr and renovate a property in Italy, here are three projects in Tuscany for sale.
1. Three-bed house, Bagni di Lucca, €59K
This three-bedroom house in Bagni di Lucca is for sale via the Italian Property Gallery for €59,000, the equivalent of £50,500
2. Four-bed house, Tuscany, €750K
This four-bedroom house in Tuscany is being sold by Apolloni & Blom estate agents for €750,000, the equivalent of just over £641,000
3. Two-bed house, Tuscany, €150K
This two-bedroom detached house in Tuscany is for sale via Lunigiana2000 estate agents for €150,000, the equivalent of around £128,000
This post first appeared on Dailymail.co.uk
