Finance Options for Purchasing Property
OPTION 1 - MORTGAGES
A variety of mortgage products are available for Turkey house purchases, arranged on a variable or fixed-rate basis, or a combination of both. Interest rates vary between 4.8%-10%. Repayment terms can be from 5 to 20 years, however loans must be repaid by the age of 75. Many of the products available do not have any early redemption penalties.
As you may expect there is a requirement to provide a certain amount of documents when applying for a mortgage on a Turkish property. We will guide you through the process after talking to you about your particular situation, but as a start you will need to provide:
* Proof of identity & residence * Property details * Proof of income & outgoings * Bank statements
Best available terms for Turkish mortgages
Loan to Value Up to 90% of the property value
Interest Rates From 4,05% pa
Currency Euros, GBP, Dollars
Mortgage Terms Up to 20 years
Maximum age at Maturity 75
Minimum Loan Amount €25,000
Maximum Loan Amount No maximum
Multiple Purchases Yes
Buy to Let Yes
Bank Charges Typically 1.5%-2 % of mortgage amount.
Example Payment Table (£)
PROPERTY DEPOSIT AMOUNT MORTGAGE AMOUNT MORTGAGE TERMMONTHLY PAYMENTS
50,000 15,000 35,000 20 216
60,000 18,000 42,000 20 258
70,000 21,000 49,000 20 321
80,000 24,000 56,000 20 345
90,000 27,000 63,000 20 388
100,000 30,000 70,000 20 431
Based on 4.8% interest rate and 70% Loan To Value, guidance only. Please contact us for detailed information and application procedure
OPTION 2 - VILLA MORTGAGES
Mortgage for off-plan villas ONLY
Application Steps
1- Client’s eligibility and affordability assessed by HFC
2- Client submits required documents to HFC
3- 6 months valid mortgage approval given within 10 working days after documents submitted.
4- Client pays the deposit
5- Construction starts.
6- Due to completion, valuation will be arranged by HFC.
7- Client signs the mortgage deed.
8- Bank releases the rest of the funds to the Developer
Example
Example - Mortgage Term: 15 years Interest rate: 6.4%
Property price £70,000 £80,000 £90,000 £100,000 £150,000 £200,000
Mortgage amount £49,000 £56,000 £63,000 £70,000 £105,000 £140,000
Deposit £21,000 £24,000 £27,000 £30,000 £45,000 £60,000
Monthly payments £430 £493 £554 £616 £924 £1230
Guidance only, interest rates and mortgage terms may change before the acceptance of the mortgage offer
Key points
1- Property must be completed within 6 months. ( Additional documents and additional fee may be applicable due to delays after 6 months)
2- Iskan and military permission required for the mortgage funds to be released.
3- Maximum mortgage amount is 70% of the valuation price.
4- Mortgage repayments don’t start until the completion.
Please contact Citrus Estates for the details of required mortgage documents and the mortgage costs
OPTION 3 - REMORTGAGE TURKISH PROPERTY
Buy another property with no money down!
Re-mortgage for existing clients
Application steps
1- Client’s eligibility and affordability assessed by HFC
2- Client chooses and agrees for a new property. (Can be off-plan or completed)
3- Client applies for a re-mortgage of up to 70% of estimated existing property current price.
4- Decision in principal given within 3 days
5- Required documents submitted to HFC
6- Approval given within 2-3 weeks according to completed documentation.
7- Bank values the property.
8- Funds will be released to client’s account according to valuation.
9- Client makes payment to Developer for the new property.
Property value £70,000 £80,000 £90,000 £100,000 £150,000 £200,000
Mortgage amount up to £49,000 £56,000 £63,000 £70,000 £105,000 £140,000
Monthly payments £335 £385 £432 £480 £720 £960
Mortgage term Up to 20 years
Annual Interest rate 5.3%
Guidance only, interest rates and mortgage terms may change before the acceptance of the mortgage offer.
Key points:
1- No military clearance needed for the mortgage process.
2- Eligibility for the remortgage must be obtained by HFC before any arrangements made.
3- You can get some cash back depends on the price of the property you will be buying.
4- Mortgage currency may be Euro or GBP depends on the applicant’s circumstances.
OPTION 4: THE DEVELOPERS FINANCE
Basic Facts:
1) 50% deposit
2) 5% interest rate
3) If the contract is cancelled on either party’s, there will be a cancelation fee. (Minimum
£5,000)
4) No early repayment fees. (Client can pay the extra or payoff at any time)
5) This is a repayment type mortgage/loan, at the end of the term client will pay off
Mortgage / loan.
6) Property prices for mortgages are quoted on sunset homes website. This mortgage/loan
Cannot be used in conjunction with any other promotion.
7) Payment plan will be shown on contract, similar to normal purchases. Client will receive
Title deeds when all payments have been received,
But client will own the property once the
Deposit has been paid.
8) This contract will be made in Turkey and will be
Covered by the Turkish law, not the UK law.
Example: 50K property -
Customer will pay £25,000 deposit, £481 per month (5% interest fixed), over 5 years, (60 payments) total payable to developer is £28,870.
OPTION 5: FRACTIONAL OWNERSHIP
Basic facts ;
1) Property can be purchased by 2, 3 or 4 people. Purchasing min 25% of the property.
2) Title deeds will have all the buyers’ names. Each buyer will have share on the deeds.
3) If you decide you would like full ownership of a property, you can sell your half back to sunset homes and purchase a different property with 100% ownership.
How it is different from a time-share: max 4 people can purchase the property.
Purchasers can change the property if decided the purchase another property.
Sunset Homes may have part ownership of the property in the event of there not being enough sharers in one property. Sunset Homes will sell the share when the next purchaser available.
Please contact us for more information and application forms.
