Buying property in Italy with an Italian mortgage is not necessarily the same as buying a property in the UK, there is other essential information you need to be aware of both before and during your property purchase and before you take out your mortgage in Italy.
- It is of paramount importance to seek independent advice from a lawyer specialising in Italian law prior to signing the preliminary contract / Compromesso, paying a deposit or committing to the Italian mortgage.
- You need to ensure that you will have full title to the Italian property on completion and that you have the appropriate documents available for the mortgage lender.
- The Italian bank will require a copy of the signed preliminary contract or “Compromesso with the relevant application form. However, before signing the contract ensure that you are able to sign this with the clause “subject to mortgage finance and valuation” as the contract once signed is legally binding in Italy.
- 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 Italian property. 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 Italian mortgage offer. These associated fees/taxes are typically between 10% – 15% of the properties purchase price.
- A tax code is mandatory for purchasing an Italian property, known as a fiscal code. Your solicitor will advise you on obtaining one. Please note that the mortgage Lender will need a copy of the certificate with your application.
- All properties must be in a habitable condition, with constructed roads as access.
- Be aware that the Notaire may be incorporating costs for assigning the mortgage within his charges. Establish the actual cost before proceeding with a loan application.
- Unless you understand Italian well enough to respond to the Notary, he is obliged to call upon the services of a qualified translator, because the law states that you must understand what you are purchasing. The cost of the translation services will be paid by you. Alternatively, you may wish to grant a power of attorney to a representative of your choosing, who is fully conversant in Italian.
- An Italian Bank Account must be opened prior to taking out an Italian mortgage and details provided to the mortage Lender prior to completion
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