Mortage for buying propety: what are conditions for registration?
A foreigner has opportunity for taking mortage when buying absolutely any property from bank and from developer. Below we will tell you about both ways.
To begin with, foreigner can take out loan only for 50% of total value of the property. The maximum loan amount is 75 thousand pounds. But, amount may be increased if buyer provides accompanying documents of income. The loan term can be from 60 to 120 months.
In the event that loan is taken for period of 60 months. Bank issues necessary amount at 8-10% per annum. For longer period, amount of interest increases but not more than to 8.45% for 120 months. It is also necessary to take into account additional one-time fees of 2% as commission to bank and stamp duty of 0.5%.
In addition, property insurance against total amount of loan, as well as from accident. Is a prerequisite for buying property in a mortgage from a bank. In the event that the property is under construction and there is no objective opportunity to obtain the title, then the property is accepted by the contract between the developer and the buyer, in this case the developer is the guarantor.
The loan early repayment commission is 2% of remaining amount.
List of necessary documents for application for mortage:
- Passport copy;
- Confirmation from place of residence;
- Statement of income (rental payments, statement of deposit accounts, promotional certificates);
- Tax declaration;
- Extract of credit history;
Additional documents for pensioners:
- Extract from a pension fund;
- Bank statement for the last 12 months in the amount of pension.
How do get a loan from the developer?
However, very often you may meet a situation when buying from developer property under costruction. Many developers are offering to customers amazing payment plans or sometimes even mortages!
PLEASE NOTE: Situation with every property developer is different. Ask your Veles Property agent for more detailed information!
If you have decided to buy property from the developer and decided to get mortage from him. So, here are few steps to get it:
- Decide on property you would like to buy;
- Discuss conditions with developer;
- Don’t for get to ask for discounts and benefits. Veles Property customers sually get up to 7% more dscounts than avarage customer!
- Bring your passport;
- Sign up a reservation form;
- Sign up agreement of Sale;
What are the conditions for discussion?
- If you decided to take a property under construction in Kyrenia district be ready to the situation when you will get payment plan only until time of key handover!
- If this is ready property, most probably you may pay 100% within few months time. Developer usually is giving maximum 1 year time to pay for your property.
- If you decided to buy property under construction in Famagusta or Iskele districts here you will face different situation when buying.
- First of all, you may get an installment plan up to 5 years without any interest depending on a property you choose. If you are not able to pay your property within this time. Than you will be offered a payment plan for 10-15 years with interest fee on a top of amount. To take this mortage plan all you need is your wish and passport!
Here is brief information on how you are taking mortage for buying property in North Cyprus!
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