Wealden Times | WT179 | January 2017 | Health & Beauty supplement inside

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Owning Property Abroad
Living in such close proximity
to the coast, many of us choose
to buy second homes in France
and other Euro-states, rather than in
the UK. After all, a quick hop across
the Channel, via the tunnel or a
ferry, is much easier than the long
slog down the A303 or up the M1!
With the decision having been
made to leave the EU, owners of
property abroad are starting to
think about what impact this may
have on foreign home ownership
and inheritance. Partner Jessica
Jamieson and associate Alison
Ward, from law firm Cripps,
outline some of the issues that
should be considered before
making any final decisions.
The general view seems to be that,
in fact, Brexit will have little impact
on holiday home ownership. People
had second homes in France, Spain
and other European countries
long before the UK joined the EU,
and many non-EU residents have
bought property in the EU since the
union was formed. The EU could
require UK citizens to apply for
visas before any visit, which would
be inconvenient and intrusive but
not completely prohibitive; any
visa programme is likely to be
subject to a simplified process
for holiday purposes, like the
ESTA which allows up to 90 days’
travel to the USA for holidays or
business. That said, there are so
many French nationals resident in
the UK – London is often referred
to as France’s ‘sixth city’ – that it
is unlikely France would want to
make life difficult for British people
living in and visiting France. The
same could also be said of Spain.
There is, however, one area in
which people could and should
be planning ahead if they have
property and assets across
different countries: succession
and inheritance planning.
Under UK law we are able to leave
our estates as we wish but the law
also says that ‘real property’, such
as holiday homes, will pass under
the law of the country in which
it is situated. So, for example, a
French holiday home would pass
under the French rules on ‘forced
inheritance’. These dictate that
property is divided among family
members in set proportions,
which may not fit with the owner’s
plans for sharing their estate.
Fortunately, a piece of Euro
legislation introduced in 2015
(‘Brussels IV’) now allows people to
decide if they wish to have the law
of their nationality applied to their
estate when they die. Although the
UK has not opted in to the rules,
and won’t be able to after Brexit,
they affect property in all other EU
states except Denmark and Ireland.
If no choice of law is specified,
the law of the person’s country of
‘habitual residence’ will apply –
which for us is likely to be UK law.
As already mentioned, however, UK
law states that overseas property
should be dealt with under the
law of the country in which it is
situated. So a French holiday home
would normally be dealt with
under French law. If an English
national wants to decide who should
inherit a French property, their
Will must say that they want the
French property dealt with under
UK succession law. The French
authorities, applying the Brussels
IV rules, will then refer it back
to be dealt with under UK law.
The rules are, of course, more
complicated than outlined here
and there are other issues to take
into account, such as the effect of
different countries’ tax regimes.
The important thing is that Wills
should be reviewed frequently
and detailed advice taken on
the tax and other implications
of owning foreign property.
At Cripps we have specialists who
can advise on these issues and,
as members of an international
alliance of law firms, MarcAlliance,
we are able to work with our
colleagues to obtain advice on
the law in many other countries.
Our aim is to listen to our
clients, offer solutions and
guide people towards the
correct decision for them.
Jessica Jamieson
T - 01892 506 019
E - jessica.jamieson@cripps.co.uk
Alternatively contact
Alison Ward
T - 01892 506 251
E - alison.ward@cripps.co.uk
Cripps is a key regional law firm serving clients
nationally and internationally from offices in Kent
and London. Recognised countrywide for both
its commercial and private client work, Cripps is
ranked in the Top 25 Private Client Law Firms. The
firm focuses on wealthier families, entrepreneurial
businesses and the real estate sector.
www.cripps.co.uk @crippslaw This article gives examples and is intended for general guidance only