Notes for property purchase in Bulgaria
In Bulgaria a foreign person can not own titles of land although a foreign legal entity such as a ltd company can. A foreign person can have full rights on an edifice although not own the underlying land.
So if you will apply for a loan via a Bulgarian Company that you are the owner of you will be required to guarantee the loan. A requirement of the lender will be for you to get legal advice from a UK solicitor regarding the guarantee of the loan and the lender will require a letter from the solicitors you instruct confirming this and that you have received independent advice.
Finance will only be granted for completed apartments where the State Acceptance Commission has issued a valid "Use Permission Certificate" You should ensure that you have full title to the property on completion and that the appropriate documents are available to the lender.
You can use the lender's solicitor for your own representation but this will need to be specified in the mortgage application. Your solicitor or notary may incorporate within his charges the costs for assigning the mortgages - establish the actual cost of the loan before preceeding with the loan. All loans will be in Euros.
Finally the actual completion of a mortgage in Bulgaria takes place when all parties are present or representatives of at the notaries offices in Bulgaria. Before completion takes place the lender will provide a draft of the power of attorney and the actual documents will need to be given to the lender before the completion date.
If a property is currently uninhabitable funds will not be advanced by the lenders to purchase or renovate such a property. Lenders will not take into consideration any proposed rental income from the property for mortgage purposes/repayments.
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