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Homes > Italy
Italian Property
as Security
If you need finance
to purchase a property
in Italy, then Justcredit.biz
can help, we can
give you access
to a team of licensed
credit rokers, who
have over 20 years
experience. By using
the property you
wish to buy, in
Italy as security,
you could raise
a repayment mortgage,
depending on your
circumstances.
Based upon the
valuation or purchase
price (whichever
is lower) you could
be granted a loan
for up to 80% of
the value of your
Italian property
(in any major currency),
for purchases (or
re-mortgages; for
home improvements).
There is a minimum
loan of £25,000,
that has a repayment
period of up to
30 years (in Euros),
and can be available
up to the age of
75. Current interest
rates as at 5th
June 2003 are from
approx 3.00% variable
in Euros. Discounted,
fixed rate and commercial
loans are also available.
The example below,
demonstrates a repayment
mortgage, in Euros.
The cost of a mortgage
protection policy
has not been taken
into account.
Repayment
mortgage of
approx €
72,500 over
a period of
20 years at
an interest
rate of approx
3.00% = approx
€ 406.72
capital &
interest per
month = a
total approximate
amount payable
over the term
of €
100,514 including
capital, interest,
arrangement
and survey
fees.
The
income criteria
is variable
Bank Reference
and Employers
or Accountants
reference
if self-employed
Existing
borrowing
in the UK
and Overseas
will be taken
into account
ALL ENQUIRIES
WILL BE DEALT
WITH ON A
CASE BY CASE
BASIS &
ARE SUBJECT
TO SATISFACTORY
CREDIT STATUS
& VALUATION
Please
note, that
as the loan
is secured
on the overseas
property,
it is not
covered by
the UK
Consumer Credit
Act or the
UK
Mortgage Code.
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(Written quotations
are available on
request.)
How much
can I borrow &
what proof of income
is required?
There are no non-status/self-certification
mortgage facilities
available in Italy
, therefore all
loans need to be
supported by a minimum
of, proof of income.
If you are employed,
you will need to
produce; your last
three months payslips,
P60/employers reference
and your last 6
months Personal
bank statements.
If you are self-employed
you will need; copies
of your Audited
Accounts together
with your last 12
months business,
and 6 months personal
bank statements.
Lenders in Italy
will not take into
account any proposed
rental income from
the property that
you wish to buy.
Your loan will
be based on your
personal (or joint)
'net' pay, and is
calculated on an
affordability basis.
For you to be considered
by the lenders in
Italy ; your total
out-goings must
not exceed 40% of
your net monthly
income.
A simple example;
if your total net
monthly income is
£1,000, your
total out-goings
must not exceed
£400: you
must have £600
per month for personal
spending to be considered.
A
guideline for purchasing
a property in Italy
:
•
Ensure that you
have full ownership
of the property
upon completion,
and that the relevant
documents are available
for the lender.
•
With newly constructed
properties, ensure
that you know the
date that the property
will be registered
to you. The lender
cannot lend on the
security of the
property until it
has registered.
•
Due to the Italian
legal and administrative
system, there may
be slight delays
on securing your
loan, despite the
fact that all reasonable
steps will be taken
to avoid this. So
be prepared.
•
Make sure you have
researched every
possible cost that
you may incur, whilst
purchasing a property
in Italy . Note,
you may be charged
by the government
in addition to the
lenders legal costs
(the Lenders costs
however are usually
specified when the
Lender offers you
the mortgage).
•
Unless you are very
experienced in purchasing
abroad, it is very
important that you
seek some sort of
legal advice before
signing the contract
for a property or
paying a deposit.
The Lender will
require a copy of
these signed documents
together with an
application form,
however you will
be able to sign
these documents
'subject to mortgage
finance', once the
contract is signed
it is legally binding,
so if you do not
state this and the
Lender does not
wish to do business
with you, this could
be a huge problem
•
Legal advice may
be costly, so ensure
that you receive
a complete quote,
incorporating all
costs, before applying
for a loan.
•
An Italian account
will be required.
•
Loans are available
in Euros only.
•
It is advisable
that a life assurance
policy is set up
on all mortgages.
•
Properties in Italy
can be purchased
by an individual
or in joint names.
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