Building a new property abroad may seem like a tempting option for anyone who has been unable to find the perfect holiday home or the ideal house that they would consider as a relocation destination.
However, the same laws that govern the planning process in the UK do not apply when building property in France, Spain or Italy.
Even experienced builders from the UK could find they fall foul of a loophole that they were not aware of – while the different rules governing the sizes of properties that can be constructed, their designs and locations could put some applications in jeopardy from the outset.
Planning property in France
The planning process itself varies from country to country; for instance, when building property in France, it is not always necessary to wait for permission at all.
If an application receives no formal approval or rejection from the local mayor after two months, construction can generally go ahead on the assumption that no major objections have been raised.
However, a different set of circumstances arise if a neighbour objects to any plans that are made – and the planning proposal must be advertised with signs erected on the actual site where construction is due to take place.
Should a neighbour object, the French property planning process allows construction to commence, but the domicile may need to be demolished if the objections are later supported.
Building property in Italy with no permission
The process of building property in Italy is laced with risk, particularly in the case of the ‘condono’ principle.
Condono allows people who have built property without planning permission to apply for it to be granted retrospectively.
In some cases, permission will be granted and the property is permitted to remain in place without alteration.
Again, if permission is not granted, those responsible for its construction face the prospect of having their new home demolished.
Dream property in Spain demolished before their eyes
In early 2008, a development of retirement property in Spain was ordered to be knocked down – despite having been granted planning permission by the local authorities.
Local town hall planning officials were overruled by the regional government of Andalusia, which determined that a number of new-build homes in Vera were illegal.
They were subsequently demolished in front of the eyes of the couples who had saved their entire lives for what they had hoped would be a peaceful retirement in the sun.
Financing a self-build project
People who are planning to self-build property in Italy, Spain or France face the issue of funding their project.
With volatile exchange rates, the cost of building a new home abroad can change even if no alterations are made to the designs and everything runs on time.
However, when buying property in Spain, France or Italy that has already been built, a mortgage can usually be arranged with a bank in the UK.
For people who are planning to split their time between their new home overseas and their old UK property, this could prove to be the ideal option.
Arranging the mortgage within the UK means no language barrier to overcome and could also mean that English-language online or telephone banking facilities are also available.
It also means that, during the time that the family spends in their old UK home, any mortgage repayments can continue to be made directly to their bank without having to negotiate arrangements with a financial services provider on the continent.
Even if financing is arranged on the continent, choosing ready-built property in Europe could provide the peace of mind that comes from knowing the total price from the outset and being able to fix the exchange rate at which the funds are converted from pounds sterling.