By Martin Williamson, pictured, head of residential property at Latimer Hinks Solicitors

SINCE June 23, the value of the pound has been fluctuating, with considerably more downs than ups. With Brexit looming, relations with our Continental neighbours uncertain, and a volatile economy, it would not be unreasonable to assume that now may not be the most opportune moment to consider the purchase of a villa in the Algarve.

However, it would seem that most people wanting to venture into the Continental property market are continuing to do so – not as an investment, as is often the case with those buying second homes in the UK, but in search of a holiday home or a place in a warmer climate to retire to.

It’s possible that despite the uncertainty of the market, many people will want to press ahead with their plans and expand their property portfolios into mainland Europe. Indeed, it’s even possible that falling demand, especially in some tourist hotspots, may ultimately result in a reduction in prices. In fact, in some parts of Italy and France, prices have still not recovered to pre-2008 crash values.

Equally, talk of the apparently misleading practice and hard-selling of timeshares has left a bitter taste, so many people would rather invest in actual bricks and mortar. Others who are set on the idea of a holiday home may have been deterred from buying British because of the stamp duty premium rate, amounting to an additional three percent on properties costing more than £40,0000. Whatever the reason for pursuing overseas property ownership, especially in the current climate, close market observation is of paramount importance.

The next two years seem likely to deliver continued uncertainty in the markets. To mitigate currency fluctuations buyers could look into obtaining a forward contract which guarantees – for a fixed term – the exchange rate at the time of signing. These operate in much the same way as the fixed-price deals offered by some energy firms, so while consumers are protected from price rises, they do not benefit from price reductions. Likewise, those opting for a fixed-currency deal will not immediately suffer the consequences of currency devaluation, but neither will there be any financial gain from improvements to the exchange rate.

Buyers could engage a mortgage broker who may be able to negotiate with foreign lenders to arrange a mortgage in the native currency, but the signing of documents in foreign languages is a risky business, so they should make sure that any contracts are translated by a fully fluent and qualified legal translator.

On a day-to-day basis, buyers should consider what the eventual impact of Brexit negotiations could have on foreign property ownership. The prospect of property being seized is an urban myth and would contravene human rights, but there are more tangible considerations like the availability of free emergency healthcare in EU countries and the potential (albeit unlikely) introduction of travel visas. Several airlines have already warned that prices and routes could be affected and nobody would want to own a property they couldn’t access.

It’s certainly not the end of the road for foreign property investors, and in post-downturn Europe there are still plenty of bargains to be had.

For further information log on to latimerhinks.co.uk or call 01325 341500.

Please note: This article is intended as guidance only and does not constitute advice, financial or otherwise. No responsibility for loss occasioned/costs arising as a result of any act/failure to act on the basis of this article can be accepted by Latimer Hinks.