FISCUS MORTGAGES - INFORMATION AND ADVICE

BULGARIAN MORTGAGE GUIDE

This covers RESIDENTIAL property only.

Includes Bulgarian residential property. Please note, that if the property is being built, funds are not available until completion and the property has been legally registered in your name.

Loans available for UK and Irish Nationals (and non-UK Nationals on a case by case basis) for either House Purchase or re-financing for Home Improvements. Mortgages for other purposes may also be considered - contact us for further information.

Type of Loan: available on a Repayment basis only

Minimum: €25,000 - Minimum Purchase Price €36,000, No Maximum, but must not exceed 70% of valuation or purchase price (whichever is the lower).

Proof of Income: required in all cases (can be made up of Earned Income, Pension, Investment or Rental Income. Please note however, it is not always the case that the Lender will take all or part of these Incomes into account when determining the maximum loan available). Non-Status loans are currently not available.

Term: Maximum 15 years - up to age 70

Currency: Euros only

Current Interest Rate: approx 7.50%

Example: Repayment Mortgage of approx €70,000 over a period of 15 years at an interest rate of approx 7.50% in Euros = approx €661.50 capital and interest per month = a total approx amount payable over term of €121,870 including capital, interest, arrangement and survey fees"

Essential notes for purchasing a property in Bulgaria

1) Please ensure that you have full title to the property on completion and that the appropriate documents are available for the lender. Finance will be granted only for completed apartments where the State Acceptance Commission has issued a valid “Use Permission Certificate”.

2) In Bulgaria, although a foreign legal entity (Ltd, joint stock company etc) is entitled to own titles of land, a foreign person is not. However, a foreign person may have full rights on an edifice, as he/she may own title of an edifice without owning the underlying land.

3) It is essential that you take the appropriate legal advice before signing a preliminary purchase agreement or paying a deposit, as if purchasing in your own country.

You may choose to use the lender’s solicitor in Bulgaria for your own representative also. If this is the case, you will need to specify this in the mortgage application. Your relationship with the solicitor will be totally separate from that of the lender and the solicitor.

4) If applying for a loan to a Bulgarian Company of which you are the beneficial owner, you will be required to guarantee the loan. The Lender will expect you to receive independent legal advice from a solicitor in the UK concerning the guarantee and confirmation from the solicitors that they have indeed advised you independently (both documents incorporated within the Guarantee).

5) Please be aware that the Lawyer/Notary may be incorporating, within his charges, costs for assigning the mortgage and you should establish with the Lawyer/Notary the actual cost before proceeding with the loan application.

6) The completion of a Bulgarian mortgage takes place in front of an appointed Bulgarian Notary and all representatives of the parties to the mortgage need to be present. A power of attorney will need to be presented to the lender in good time before completion – a draft document will be provided by the lender.

7) Please bear in mind that if you are intending to be present at the completion to sign all the relevant documents and you do not understand the Bulgarian language, a translator will be required to respond to the Notary. The translator will also be required to sign the notary deed.

8) Please note, that the lenders will not advance funds to purchase or renovate properties that are currently uninhabitable.

9) It is advisable to arrange your mortgage finance before agreeing to purchase a property.

10) Properties can be purchased either individually, in joint names or in the name of a company.

11) All loans will be in EUROs.

How much can I borrow & what proof of income is required?

Please note, that there are no non-status/self-certification mortgage facilities accepted by the lender. All applications need to be supported by a minimum requirement of proof of income. If employed, copies of your last three month's payslips & copies of your latest P60/Employer’s Reference together with copies of your last three month’s Personal Bank Statements will be required or alternatively if you are self-employed, copies of your last three years Audited Accounts & copies of both your last 3 month's Business and Personal Bank Statements will be required on application.

The lender will NOT take into consideration any proposed Rental Income from the property for mortgage purposes/repayments.

Your loan is based on your joint net “take home” pay and is calculated on an affordability basis. All your existing liabilities including any mortgage/rent payments, personal and bank loans and any maintenance (ie: Divorce) payments together with your proposed Bulgarian mortgage payments must not exceed 40% of your net monthly income.

Example:

Net joint monthly income £ 2,500 times 40% of that figure is £1,000 minus existing monthly mortgage payment £ 300 – No other liabilities. This leaves a balance of £700 for a proposed Bulgarian Mortgage payment.