NB: Equity release schemes are currently NOT available

Buying property abroad is not necessarily the same as buying in the UK, there is other essential information you need to be aware of both before and during your property purchase.Buying property abroad is not necessarily the same as buying in the UK, there is other essential information you need to be aware of both before and during your property purchase.

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

• It is of paramount importance to seek independent advice from an overseas solicitor. You must have your own Independent solicitor representing you throughout the purchase. This solicitor must meet the lender’s requirements in respect to representation as “Agent for service of process”.

• 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”, therefore no staged payment finance is available

• In Bulgaria, although a foreign legal entity (Ltd, joint stock company etc.), is entitled to own land, a foreign national is not. However, a foreign national may have full rights on a building, as they can own the title of a building without owning the underlying land.

• If you are 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 guarantee and indemnity, and confirmation from the solicitors that they have indeed advised you independently.

• You should check with the estate agent and/or your lawyer that you are aware of the costs charged by legal and Government authorities for buying an Bulgarian property. The solicitor may be incorporating costs for assigning the mortgage within his charges, along with the title deeds to the land registry. You should establish the actual cost of these before proceeding with a loan application. The lender will also have their own legal costs for assigning the loan, the cost of which they will normally advise you when they issue the mortgage offer. These associated fees/taxes are typically between 10% - 15% of the properties purchase price.

• The completion will take place in front of an appointed Bulgarian notary, and all representatives of the parties to the mortgage would need to be present unless a power of attorney has been arranged and the lender advised in good time prior to completion. This should be arranged with your solicitor in Bulgaria.

• 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 Bulgarian, a translator will be required to respond to the notary, and will also be required to sign the notary deed.

• Lenders will not advance funds to purchase or renovate properties that are currently uninhabitable.

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

All loans will be in Euros.

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