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Currency £ to € now or wait?

Currency £ to € now or wait?

Old Aug 20th 2017, 10:12 pm
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Default Currency £ to € now or wait?

Hello,
I am looking to purchase a property in Spain later this year, once I decide on a location and find the right property. I have the £'s in a U.K. bank account ready, should I change to euros now ready for later this year? (Given the fall of the £) If so, how do I do this? Do I open a Spanish bank account now (do I have to go to Spain to do this?) ? Do I use a specialist currency expert?
Your advice is appreciated
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Old Aug 21st 2017, 7:39 am
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Default Re: Currency £ to € now or wait?

When we bought in Spain our lawyer set up all our Spanish accounts including a bank account and under power of attorney he was able to access the funds to pay for the property. Alternatively the lawyer could hold the money in a Client account.

In essence all we did was send over the money and we used currency dealer for that. I cannot recall who we used for our purchase, however I last used AFEX to transfer some money but there are many others and it is worth ringing around when you want to convert from pounds to get the best rate. On a substantial sum this may add up.

Whether you convert now or wait is a gamble. For certainty exchange now so at least you know where you stand. If the £ falls to parity that represents a c.9% addition to your costs. If it was me I would transfer now just for the certainty that would give.

When we purchased we were only obliged to send over the deposit but I transferred the full sum for convenience. By the time we completed the pound had dropped over 10 euros so by pure luck we saved a fair sum.

Good luck
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Old Aug 21st 2017, 8:26 am
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Default Re: Currency £ to € now or wait?

Knowing precisely which direction the GBP is going to go would make you a multi-millionaire on the money markets - the reality is that nobody knows and trying to second guess the markets is mind boggling. We have been in exactly the same situation, waiting and waiting for a favourable upturn in the exchange rate before we transfer our funds - but sadly, all the economic news seems to do nothing but drive the GBP further down.


The majority of indicators suggest the GBP will fall further against the Euro before there is any suggestion of post-brexit recovery. We have decided to transfer our funds now and bite the bullet - if we're wrong, we're wrong - no point moaning.


You can open a non-residents bank account, the easiest way is have your lawyer do it for you by way of conferring your Power of Attorney (see this post ttp://britishexpats.com/forum/spain-75/guide-conferring-power-attorney-901840/ ) alternatively, of course, you can open one in person should you pop over for a visit but giving a trusted lawyer your PoA comes in very handy during the buying process and saves you countless trips over just to sign paperwork.
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Old Aug 21st 2017, 10:01 am
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Default Re: Currency £ to € now or wait?

Thank you for advice.
Yes I think I should transfer to euros now. Should I open a currency account i.e. with smart currency and then they transfer it to a Spanish bank account, then if for any reason I decide not to buy a property as prices go up too high can I transfer back to pounds easily?
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Old Aug 21st 2017, 10:20 am
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Default Re: Currency £ to € now or wait?

Originally Posted by Uksp View Post
Thank you for advice.
Yes I think I should transfer to euros now. Should I open a currency account i.e. with smart currency and then they transfer it to a Spanish bank account, then if for any reason I decide not to buy a property as prices go up too high can I transfer back to pounds easily?
Many of the transfer companies - Transferwise, MoneyCorp etc will allow you to transfer funds into Euros at the optimum rate within a given window - handy when currency fluctuations are going both ways, but of little value when the GBP is heading downhill most of the time. My advice - and I am no professional - would be to transfer your funds into Euros with a bank and to see what happens. For every fall in the GBP thereafter, you are gaining. Depending on where you want to buy, prices are being held back by the lack of UK buyers or forging ahead strongly because of other EU buyers entering the market - but at least your funds will be stable.


We recently had to pull out of a purchase due to the falling GBP so we have transferred our funds into an account with Banca March and will be moving out shortly to rent somewhere and be on the ground, funds at the ready for when something suitable comes up.
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Old Aug 21st 2017, 2:20 pm
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Default Re: Currency £ to € now or wait?

Definitely do it now - there are no good prospects for Sterling on the horizon and September's negotiations may see it fall further.
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Old Aug 21st 2017, 2:46 pm
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Default Re: Currency £ to € now or wait?

How do I do it, do I open a bank ac first or contact a currency translation service first?
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Old Aug 21st 2017, 3:18 pm
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Default Re: Currency £ to € now or wait?

Originally Posted by Uksp View Post
How do I do it, do I open a bank ac first or contact a currency translation service first?
Open a bank account then transfer funds to your chosen FX provider (I use World First but there are others) who will carry out the exchange & forward the funds to your new account.
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Old Aug 21st 2017, 4:11 pm
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Default Re: Currency £ to € now or wait?

Originally Posted by Uksp View Post
How do I do it, do I open a bank ac first or contact a currency translation service first?

Unless you are going over in person and can open account then these things will inevitably take time. The POA alone will take 7 - 10 days and then the account opening as long again in my experience. With the volatility of the GBP/Euro exchange rate at the moment, a couple of weeks delay can cost quite a bit so it may well be worth checking with your current UK bank to see if you can open a Euro currency account with them as a short term measure. Be careful to check what rates they offer and what fees they charge to transfer your GBP into Euro and, most important of all - do NOT be persuaded to use your bank to make the final transfer, just set up your currency exchange account to take the funds from your UK Euro account - the bank will charge astronomical fees.


Any problems just get back on here and someone will help.
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Old Aug 21st 2017, 5:40 pm
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Default Re: Currency £ to € now or wait?

Thanks. Sorry I'm not sure which comes first, So I could only open a bank account in Spain in person not online? I have the cash in a uk bank account at the moment, so do I contact a currency transfer company first then open an account with them to exchange the pounds to euros then put in a Spanish bank account secondly?
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Old Aug 21st 2017, 5:50 pm
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Default Re: Currency £ to € now or wait?

Originally Posted by Uksp View Post
Thanks. Sorry I'm not sure which comes first, So I could only open a bank account in Spain in person not online? I have the cash in a uk bank account at the moment, so do I contact a currency transfer company first then open an account with them to exchange the pounds to euros then put in a Spanish bank account secondly?
We went to Hungary & opened an account, took about an hour. Then we transferred our funds to World First who sent them our Hungarian bank. However another poster has implied that a Spanish account may take considerably longer. Ask your chosen FX provider if they can hold your funds as Euros until your Spanish account is open.
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Old Aug 21st 2017, 5:52 pm
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Default Re: Currency £ to € now or wait?

Originally Posted by Uksp View Post
Thanks. Sorry I'm not sure which comes first, So I could only open a bank account in Spain in person not online? I have the cash in a uk bank account at the moment, so do I contact a currency transfer company first then open an account with them to exchange the pounds to euros then put in a Spanish bank account secondly?

It is possible to open a type of Spanish bank account in the UK (Sabadell do one) but you can only make deposits and not withdraw funds. To do so you will have to visit a nominated branch in Spain within a given period, only then can you withdraw your own money !!
Alternatively you can go down the road of giving your Power of Attorney to a recommended solicitor in Spain (as detailed previously) and have them open an account in your name. Better still, nip over and open an account in person.
So, the bank account comes first - once you have that sorted you can find a recommended currency exchange broker and open an account with them. After that it is a simple matter (you can do it online) of picking a moment when the rate suits you and transferring your GBP from the UK into your Euro account in Spain
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Old Aug 21st 2017, 6:38 pm
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Default Re: Currency £ to € now or wait?

Thank you that's great
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Old Aug 21st 2017, 7:18 pm
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Default Re: Currency £ to € now or wait?

Sept 7 is the Key Date in British Pound / Euro Exchange Rate's Outlook

Technical studies tell us that the trend is still unrelentingly pointed lower across all timeframes, so readers hoping for a stronger UK currency must reconcile themselves with the uncomfortable truth that values will likely continue to get worse before they get better in the current market environment.


Last edited by amideislas; Aug 21st 2017 at 7:21 pm.
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Old Aug 22nd 2017, 12:00 am
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Default Re: Currency £ to € now or wait?

I must be a complete dope, I don't understand what any of those statistics mean.
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