Expats Chasing Sun, Cheap Living, Says New Study

by Carla Johnson, Investors Offshore.com, London

15 August 2007

A new study from Alliance & Leicester International (ALIL), the Isle of Man savings bank, reveals that the main reason British expatriates are leaving the UK is to start a completely new life (40%), whereas around a third (32%) moved abroad because they were seconded as part of their job.

Given the poor UK weather conditions this summer, it’s no surprise that when asked what other factors were taken into consideration when making the decision to move abroad, 40% of those questioned said the weather. But an even bigger factor that the survey uncovered was that half (52%) are choosing to escape Britain’s high cost of living, with the move designed to improve their standard of living.

When it comes to deciding on a destination, the desert sunshine and bustling economy of the Middle East is an emerging expat hotspot, with over a fifth (21%) of people choosing to move there. Australia and the USA also remain popular destinations for expatriates to set up home, with Spain and France first choice in Europe.

Simon Hull, Managing Director of Alliance & Leicester International comments: “For the many people in a hurry to start a new life abroad, it is important to properly prepare for relocation. Moving country is not just a case of buying a house and packing your bags, it involves a lot of organisation.”

Hull continues: “Those considering a move need to think about their financial arrangements, legal rights and other practicalities before waving goodbye to Britain. Often those tasks that appear most daunting, such as sorting out savings, are actually very straightforward.”

Alliance & Leicester International (ALIL) has put together its top ten suggestions for things to consider when moving abroad:

• Property - Make sure you carry out thorough surveys and searches before you purchase a home overseas. Ask for references if you are hiring a property finder.
• Finances - Provide your bank or building society with new address details for future correspondence. Most of the major banks have offshore banking and savings services, so you may be able to access your finances abroad without changing provider. However, particularly when it comes to savings accounts, research the offshore market to make sure you are getting the best deal.
• Insurance - Use a local insurance broker to find out standard practice and insurance requirements, as they often offer better deals than UK based companies with overseas policies.
• Identification and documentation - Find out whether you need to obtain visas or other documentation before entering a new country. You may want to apply for residency, as some countries insist that non-residents carry their passport with them at all times for identification purposes.
• Language - A basic grasp of the local lingo is essential to help you settle into a new area. An intensive language course is ideal preparation, but a teach-yourself guide will help you to master the basics.
• Removals - Ensure you use a recommended shipping company for moving furniture. The British Embassy will have a list of recommended companies.
• Amenities - Notify your doctor and dentist before leaving the UK, and look into healthcare costs in your new country of residence. Register with a doctor and dentist as soon as you move, and ensure you know the local emergency services number.
• Bills - Tell your utility providers and council tax and electoral roll registration unit that you are moving. Settle any final bills and provide them with a new address.
• Leaving an empty house - If your house will remain empty whilst you are abroad, notify your mortgage lender and insurance provider. You can also set up a mail redirection service with the Post Office to make sure you receive all correspondence.
• Networking - Find out about British associations and publications in your new home country. The British Consulate may have a list of organisations, and there are many social networking websites that cater specifically for expatriates.

ALIL adds that opening an offshore savings account can be as straightforward as packing a suitcase. Alliance & Leicester International’s eSaver Offshore Issue 1 is the first offshore savings account that can be opened online without the need for a ‘wet’ signature. With a market leading rate of 6.40% Gross/ AER, eSaver Offshore allows customers to both buy and manage their account online and access their funds anytime, anywhere.

Hull concludes: “Financial provisions for the expatriate community have moved forward in recent years due to advances in banking technology. The eSaver Offshore has an end-to-end online functionality previously unavailable in the offshore savings market, which means for the first time expats can access and manage their savings in a quick and secure manner from any location around the globe”.

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