Location: Bulgaria.
Type of Loan: Purchase, re-mortgage or equity release on residential property or land with residential planning permission.
Type of Loan: Repayment or interest-only for purchase, remortgage or capital raise.
Loan to Value: Varies from lender to lender, for non residents 75% of the lower of the valuation or purchase on residential property and 60% on land.
Term: Land - 5 years interest only or repayment. Property - 10 years for interest only or 25 years for repayment.
Interest rates: Please contact IMM for a personal quote
Proof of Income: This is required by all lenders. Bulgaria operates full status loans only. Please contact IMM for further details.
Fees: Bank fees are typically 1% for individuals and 2% for companies (of the mortgage amount). The banks legal fees can be around 1% of the loan normally with a maximum of 1000€. Notary and Municipal (local authority/stamp duty) fees are approximately 2.4% of the purchase price. The total costs for buying a property, including notary, bank, legal, registration, taxes etc, with a 70% mortgage are typically 10% to 15% of the total price.
Remember: don’t sign anything or put down a deposit until you have taken legal advice. Your lawyer will be able to extensively cover the legal costs and taxes you are liable for prior to committing yourself to a purchase or remortgage. Contracts for property in Bulgaria are drawn up by notaries who are permitted under law. Notaries use a standardised contract in which they incorporate the details of seller, buyer and the property. They are also responsible for calculating the value of the property for tax purposes and ensuring that the relevant taxes have been paid before title can pass. Your lawyer will obtain your tax ID number and check that the legal title to the property is valid; if relevant that it has a valid planning permission which meets local building regulations; that there are no outstanding debts and that everything is ready for the signing of the contracts at the Notary's office. A lawyers Power of Attorney needs to be notarised and apostilled in order for it to be accepted in Bulgaria.
Valuations, homebuyer reports and full structural surveys are not common in Bulgaria. Banks will only obtain a basic valuation for the purpose of mortgage lending.
IMM will liaise with your lawyer throughout the process. We will obtain the relevant documents regarding the current ownership and registration of the property.
Applying for a Mortgage
Please contact us as soon as possible to arrange an approval in principle. This will enable you to find out how much you can borrow and obtain initial terms. If you haven't found a property that you want to buy we can help you to establish your affordability and issue an approval in principle based on your current financial situation.
Please feel free to contact us europe@intl-mortgage.co.uk or request a quote
