by Mark Wilkins, The Rights Group
Over the last few years we have heard an increasing number of (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 (in the UK) 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 magnificent diversity of influences are dangled carrot-like beneath our noses. Many of us have said “Can I have some of that?”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 which has 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 of it – an error by me in setting the pool’s heating device resulted in a large electricity bill!
Lesson Two – Live on an urbanisation where you have communal pools, tennis and padel courts.
Our first experiences of “gastos domesticos” – 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 children. 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 another school Mum to ride in La Cala (30 minutes up the coast – past the kids school) towards Malaga. There soon followed my kids’ 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 even 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 while you establish where life is taking you. Rental is becoming increasingly competitive and the traditionally lower yields on rented property mean that a long term rental may deliver you a more valuable house more cheaply than purchasing the same property outright. The only decision being whether you buy for cash or settle 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 enables 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 is best to represent their interests in Spain – not just their legal interests but also their accounting, tax, mortgage, insurance, currency, wealth planning and house building issues.
We have noticed over the last few months a significant growth in this business, which we suspect is as a direct result of UK TV and media pieces which have focused on those unlucky individuals who have 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 marketplace help you minimise the risk of 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:
1. The retired or semi-retired couple looking for a greater quality of life and to be able to offer their family a great vacation opportunity. Let me tell you that your grandchildren, and the rest of the people with whom you had only a nodding acquaintance with back in your home town, will want to come and visit you when you live in the sun!
2. 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 a 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 combination of 1. and 2.
3. The family lifestyle relocation, where the breadwinner works either in Spain, the 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 easily in Marbella as they can in 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 the “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, from the roads to broadband internet (with many newer hotels and restaurants installing WiFi capability). Equally exceptional is the simple variety of life from skiing in Sierra Nevada, to lounging by the Urbanisation’s crystal blue gurgling waters, 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 CÃƒÆ’Ã‚Â´te 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 CÃƒÆ’Ã‚Â´te D’Azur we do genuinely have over 300 days per year of sun and the temperature never dips below 5!
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.
Copyright Mark FR Wilkins 2005 (Marbella)
Mark FR Wilkins
The Rights Group SL
0034 600 343 917