British people selling a home in the Eurozone are seeing sharp falls in the sterling value of their sale with the weakening euro, reported SmartCurrencyExchange.com in March, adding that many expats relocating back to the UK in 2015 may have to re-evaluate their financial situation as a result.
“This year’s ongoing exchange rate movement isn’t good news for everyone, in particular British expats and holiday homeowners who are selling a property in euros,” said Charles Purdy of SmartCurrencyExchange.com.
“Typically, many British vendors will have a target amount of sterling they would like to achieve from the proceeds of their house in, for example, popular expat locations such as Spain, France or Portugal. A weaker euro makes achieving that target more difficult, especially when Eurozone property markets are generally static at the moment, so prices are barely rising, if at all.
“Expats coming back to the UK who are relying on the sale of their overseas home for resettling may need to adjust their plans and should take into account the effects of currency rates on how much sterling they repatriate. Since the start of 2015 alone, the euro has weakened by around eight per cent against sterling, but over the past year this figure has risen to 14 per cent. The best way to keep in touch with the currency markets and maximise the amount of sterling you get from repatriating funds is to use a currency transfer specialist, who can keep you updated on the latest rates and developments and recommend currency buying strategies to suit your particular circumstances. If you're committed to an overseas property sale, but concerned about future exchange rate fluctuations, you could consider securing a guaranteed exchange rate for a future repatriation transfer by using a forward contract.”