Over the last few years we have heard an increasing number, perhaps
apocryphal tales of UK citizens “not recognising “ the country they
grew up in. Feeling alienated in their own country and looking for a
way out.
When you decide that you are nearing the end a busy working life, your
family have fled the nest or you simply want a better quality of life
for your family, your mind will inevitably wander to questions of
whether there is a better quality of life to be found elsewhere.
We’ve all attended those “lifestyle” shows at the NEC or Olympia where
the prospect of 330 days a year of sun, a milder climate for arthritic
bones, a golf course for every day of the week, international quality
schooling and a magnificently diversity of influences are dangled
carrot like beneath our noses.
Many of us have said “Can I have some of that!”, yes please…..
Well, nearly three years ago, together with my wife and three kids, we
decided that a home in Wandsworth, South West London and a partnership
in a Mayfair law practice had passed their sell by dates and we needed
a new dream.
My wife, who has been coming to the South of Spain regularly
since early childhood is a very accomplished Spanish speaker – exposure
– so to speak - to a succession of Spanish au pairs in London had
broken me in – so the location of our transition was fairly obvious.
We’d move to the Costa del Sol.
After three fruitless and costly attempts to purchase a house
in the Neuva Andalucia area of Marbella, we decided to rent – culture
shock number one.
We rented a five bedroom villa with a splendid garden and all
important crystal blue swimming pool. It was exceptional for the first
months after our arrival in the mid- summer but as the glorious autumn
came and went our first winter reminded us that the majority of older
properties in the developed South of Spain were constructed primarily
for Summer use. That stunning white marble floor in the majority of the
house had a refrigerating quality in the high summer – it has exactly
the same quality in mid winter. And let me tell you when you are used
to 35 degree Summers 8 degree Winters feel really cold. Those romantic
log fires in October became braziers of necessity in January.
Lesson One - If you are going to
relocate and live in Spain all year round– choose a newer property that
has either under floor heating, hot and cold air conditioning and/or
tiled or wood floors rather than marble in the main reception rooms.
Alternatively, buy an extremely ancient Cortijo or Finca with metre
thick walls and stone floors.
For the eleven months we lived in the house in Neuva Andalucia
we used that beautiful crystal blue swimming pool for no more than four
months. In November to December – when we made no use - an error by me
in setting the pool’s heating device resulted in a €600 electricity
bill!! When regular electricity bills were a little over €100 a month
it came a quite a shock.
Lesson Two – Live on an urbanisation where you have communal pools, tennis and padel courts.
Our first experiences of ”gastos domésticos” – or those usual
home bills which required settling monthly was our second jolt of
culture shock. Where else would we have happy queued in the bank to be
told that we were only able to pay an electricity bill over the counter
before 10.00 am and only on Tuesdays and Thursdays after the 10th of
each month!!
Lesson Three – direct debits – “pago domiciliado” - what an invention…..
The quality of schools in “our part” of Spain are, perhaps, some of the
best anywhere in the World. The problem is lack of spaces.
We decided early on that EIC in Elviria was best for our three. Their
success record spoke for itself, the atmosphere is warm but very
professional and the management excellent. After a brief need to occupy
my eldest elsewhere whilst a place became available, in September 2004,
all three dressed in the familiar blue and white they started at EIC –
a mere 20 minutes or so from San Pedro de Alcantara.
Lesson Four – If you want to get your kids into a good school – and there are a few – you need to book early.
Moving to the beach in San Pedro de Alcantara nearly two years ago was
literally a breath of fresh air. Our new home, also rented, is a
bungalow with four bedrooms and suits us perfectly. Or at least it did
until my wife – who has a life long passion for riding decided to
accept the kind offer of a school Mum to ride in La Cala – 30 minutes
up the Coast – past the kids school - towards Malaga. There soon
followed my kid’s passion for a Pony - which became their Christmas
gift and then, much to my surprise, my own passion for a life in the
saddle – I have started to take lessons.
The toll on our time travelling along the Coast has meant that
we are now due to move in the next month or so to the East of Marbella
nearer to the school and the stables.
Lesson Five – If you are uncertain
about the precise location of your dream home – wait and rent - whilst
you establish where life takes you. Rental is becoming increasingly
competitive and the traditionally lower yields on rented property means
that a long term rental may deliver you a more valuable house more
cheaply than purchasing the same property outright. The only caveats
being whether you buy for cash or settling on one of the newer style
mortgage products which are helping to close this gap.
I spent 23 years in the UK as a lawyer in industry and then,
prior to three years ago, for the last 12 in private practice I had a
fairly keen understanding of being a client and an advisor. My
confreres in the Spanish market didn’t habitually appreciate the notion
of “the client being King”. It struck me that there was a gap in the
market for an English style operator. As a result I created – what I am
told -is the first relocation focused business to operate in this part
of Spain.
It’s called The Rights Group SL (TRG) and it assists clients who have a
limited amount of experience of Spain to short circuit the process of
deciding with whom to work. Through its one stop shop - the TRG Network
– it helps clients to determine who’s best to represent their interests
in Spain – not just their legal interests but also their accounting and
tax, their mortgage, insurance, currency, wealth planning and house
building issues.
We have noticed over the last few months a significant growth in its
business – which we suspect – is as a direct result of UK TV and media
pieces which have focused on those unlucky individuals who had been
misinformed, ill advised or have become the victims of conflicted
interests.
TRG’s second but equally important role is to project manage
clients dealings in Spain and to “drive” the clients chosen
professional advisors, as necessary. A TRG representative effectively
becomes the client’s eyes and ears in Spain. They ask the right
questions, get the required answers and, in tandem with the chosen
advisors, keep the client fully informed at all stages – using
electronic communication where possible.
Lesson Six – Let someone with current experience of the market place help you to minimise the risk of you making mistakes!
What kind of “relocator” are you? We have identified that most people
who choose Spain as their first home fall into one of three categories:
- The
retired or semi-retired couple looking for a greater quality of life
and a being able to offer their family a great vacation opportunity.
Let me tell you your grandchildren – and the rest of the people with
whom you had only a nodding acquaintance with back in you home town -
will want to come and visit you when you live in the Sun.
- The “Nomad”
Expat whose work takes him/her to far flung corners of the Globe. They
have usually lived an expat life in the Middle or Far East for a number
of years and home base is less important but the UK is not an option.
They do want a foothold in Europe, and for some reason France and Italy
do not really appeal. They tend to spend perhaps three plus months a
year “at home” in Spain and often buy homes for cash earned in tax free
zones overseas. Sometimes these relocators may also be a blend of 1.
and 2.
- The
Family lifestyle relocation, where the breadwinner works either in the
Spain, UK or overseas and the location of the family home can be a
question of choice – the quality option. Typical amongst this group are
airline pilots and petro-chemical engineers.
Whilst the Spanish Costas were once the privilege of the self made
millionaires and dubious characters, they are fast becoming very
welcoming to those seeking to improve their lives whilst not severing
their routes to income in their home market. This means that a business
person can locate themselves as well in Marbella as they can Maidstone.
As the economy develops on the Costa del Sol so does the jobs
market. A barometer of this is the number of recruitment companies
establishing roots here and the variety of publications and websites
dedicated to ensuring that those who want to work can.
The local market is still property, golf and tourism based. We
have noticed businesses starting to emerge that serve the Expat markets
in the printing, restaurant, magazine publishing and motor vehicles
sectors. Above all there is a sense of “frontier” about activities
here, it encourages an entrepreneurial spirit and unlike the UK the
barriers to entry are not as prohibitive.
With the cost of many properties on the desired Costa del Sol
reaching the heights equivalent to many a metropolitan home in the UK,
this glorious coast has become a “first home “ market where those who
relocate regularly do so on a year round basis. The market is entering
a reality phase where prices are stabilising and real value for money
is starting to be obtained.
With an increasingly sophisticated mortgage market where, although self
certification is not yet possible, many can buy their dream villa,
Finca or Cortijo with a chunk of equity from the sale of a UK property
plus a mortgage from a Spanish lender at an annual rate in the region
of 3.25%. Loans of up to 80% Loan to Value are common and these come
with defined periods of interest only payments.
Unlike more recently discovered areas in the former Eastern
Bloc, Malaga, Almeria, Jerez and Granada airports all remain within the
magical three hours from the UK – perfect for combining a couple of
meetings in London, Manchester or Glasgow and catching the midweek game
at Stamford Bridge, Old Trafford or Ibrox Park before catching the
morning flight back home.
The infrastructure is exceptional, the roads, the broadband – with many
newer hotels and restaurants installing WiFi capability and the simple
variety of life from skiing in Sierra Nevada to lounging by the
Urbanisation’s ‘ crystal blue gurgling water, to walking the dogs along
the many kilometres of beautiful beaches – with a handy poo bag – of
course.
This is a new coast - it doesn't have the "age" of the Côte D'Azur and
some of the developments have questionable architecture but where else
can my kids be on the beach in the morning, skiing in the afternoon and
riding into the country at dusk. Unlike the Côte D’Azur we do genuinely
have over 300 days per year of Sun and the temperature never dips below
5 degrees!
Whatever your life stage, I am confident that you and your
family will experience a new lease of life – often out of doors - and
you’ll wonder for ever more why you didn’t do it ten years ago.
© Mark FR Wilkins 2005 (Marbella)
Mark FR Wilkins
The Rights Group SL
mark@therightsgroup.com
www.therightsgroup.com
0034 600 343 917