View more on these topics

Conti launches eastern European mortgage scheme

The emerging eastern eight countries, which include Bulgaria, have gained a reputation for having legal systems that can make it difficult for purchasers to establish legal title over their chosen properties.

Conti has launched this new scheme after many months of negotiation and due diligence, which Simon Conn, senior partner at Conti, says was to ensure that the lenders working with them in Bulgaria can confidently get a charge against properties in the area to give UK and non-UK buyers the peace of mind and security they require.

He says: “We have been working closely with lenders and experts in Bulgaria over the last six months to ensure we can confidently offer the type of high quality service and mortgage scheme we are able to offer across the rest of Europe and world-wide”

The scheme is available in Euros only, has a minimum loan amount of £40,000. The maximum term of the loan will be 15 years, and will be available up to the age of 70. As of August 31 2004 the rate is approximately 7.50%.

Due to integrate fully into the European Union in 2007, Bulgaria has long been popular with Brits, and its stunning Black Sea coastline makes it one of the most popular destinations in Europe. This popularity is also making it a key hot spot for investment minded property buyers who want to capitalise on its potential and the current low prices for villas and apartments in the region. Conn, however, sounds a note of caution for

buyers considering a purchase here.

He says: “As in other European countries it is not possible to get a mortgage on an apartment that has not been built. However to ensure that your investment is safeguarded, it is possible to achieve a mortgage on completion when the title is legally registered in your name.”

Non-Bulgarians are not permitted to own land in their own name, so those buyers considering purchasing the land to build a villa, for example, must do this through a Bulgarian company with the purchaser as legal owner of that company. It is then possible to achieve stage payments for building works.

Establishing these links can be difficult, however Conti has developed a network of legal and financial specialists in the country who can assist purchasers throughout the process.

Conn adds: “As a fully independent overseas mortgage specialists, without ties to property agents or similar, we can confidently offer the assistance of specialists in Bulgaria who can advise and assist our clients and have taken time to choose the right working partners in the country.

“With an increasing number of British companies opening offices in the country, and still more Bulgarians ex-pats who would like to buy a little

of their homeland, the property market here is looking buoyant. However, as in any property purchase, it is essential for buyers to do their

homework before they buy to avoid any possible pitfalls that might await them buying in this beautiful, but very new European country.”

Recommended

ARLA guide on buy-to-let

The third ARLA, CML buy-to-let guide covers areas as wide apart as money laundering, electrical safety and general insurance products as regulated by the Financial Services Authority. The guide carries up to date overviews of buy-to-let mortgages from the perspective of lenders specialising in different areas of the market as well as the independent mortgage […]

Advantage Home Loans enhances procuration fees

The announcement enhances all deals placed on its Branded S500 range – funded by Southern Pacific Mortgages – by a further £400 provided that the business is submitted on their new generic application form and that it completes by December 31 2004.

Platform named best intermediary lender

The award, in recognition of Platform&#39s consistently excellent service to the intermediary market, was voted for independently by a panel of respected industry figures on behalf of the consumer magazine, Mortgage Advisor & Home Buyer magazine. Platform was acquired by the Britannia Group in 2001 and was launched in February 2003 as the Group&#39s dedicated […]

Intermediaries top landlord poll

A further 36% of this number look for the best deals on a six-monthly basis.The mortgage market is always changing and by reviewing their arrangements regularly, canny investors are able to take advantage of favourable deals. Mortgage advisers are the most popular source of information about current mortgage products, with 60% of landlords turning to […]

Newsletter

News and expert analysis straight to your inbox

Sign up