The Financing & Buying process

The property buying process in Barbados is similar in most ways to the U.K.

Financing your purchase:

There are three ways to finance a property purchase in Barbados

1. Cash
2. Release equity from other property (e.g. re-mortgage your current home)
3. Get an overseas mortgage

We advise against getting an overseas mortgage. Loan to value is only 60%, rates are high (typically between 5% and 6%) and Arrangement and Broker fees are steep.

The easiest way is to pay cash, either from existing funds or by releasing equity from existing property.

Buying procedure:

Once you’ve verbally agreed the purchase price the Estate Agent will issue a basic offer document. This details the price agreed, expected exchange and completion dates, and any additional terms agreed such as furniture included. This document is signed by both the Seller and the Buyer.

Non-Barbadians require permission to transfer funds to buy a property from the Central Bank of Barbados, although this is just a formality.

If you transfer the total funds from an overseas bank account this must be registered with the Central Bank of Barbados.You will need a local attorney-at-law to act for you who will communicate with the Central Bank on your behalf.

The conveyancing process

Different from the UK in that exchange takes place before checks on title etc have been carried out. 10% deposit is due on exchange, paid to your Attorney. It typically takes 2 – 4 weeks from verbal acceptance to exchange. At this stage you are legally bound to complete the purchase unless there are any issues relating to title, etc. In such a situation you can withdraw and your deposit is returned to you.

Once title etc has been verified, completion takes place. This typically take a further 2 – 3 months. The remaining 90% of the purchase price, plus the legal fees, are sent to your Attorney prior to completion.

You do not need to be in Barbados to transact a property. You will need a UK Notary to witness your signatures and return hard copy documents to the vendor’s attorney by DHL or similar. The cost of this is a few hundred pounds.

Bank accounts

Owners who spend lengthy periods in Barbados find it useful to have a local bank account to pay bills and tradesmen. If you’re using your property more as a holiday home and renting it out in between you won’t need a bank account if you use a Property Management company as they can pay bills etc on your behalf.  For those who prefer to be more hands on, opening a bank account is straightforward.

Its a good idea to use your Attorney to help set up the bank account. They may provide assistance with this as part of their service when acting for you on your purchase. You can easily manage your account and paying bills, utility companies etc wherever you are by using online banking.

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