Portuguese Mortgage Plans.
We're a UK
based International Mortgage Broker specialising in helping
home buyers secure Portuguese mortgage plans and property
loans from the UK.
When it comes to securing a Portuguese mortgage plan we only
use specialist advisors who have direct access with
Portuguese Banks
and property loan companies. We ensure our clients
receive expert advice and have access to the best
Portuguese mortgage plans to finance their home in Portugal.
Mortgages for Property in Portugal.
Mortgages for property in Portugal are
normally available for up to 80 percent of the purchase
price. This generally means you’ll need to find a 20 percent
deposit and be able to prove your income. Self certification
mortgages in Portugal are not normally available.
Mortgages in Portugal are available over 5-30 years and
lenders will not normally take into account rental income
when calculating an applicants level of borrowing. Lending
criteria & rates vary between mortgage companies, please see
below for an indication of mortgage products currently
available.
Mortgage Checklist &
Decision in Principal.
To help you prepare for the mortgage application itself
we've put together a checklist of paperwork we'll need when we
submit your application to the lender, please follow the link
below.
Overseas Mortgages are not regulated by the FSA or
arranged via Sesame Ltd.
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The Buying Process
for property in Portugal. |
Portuguese property purchase.
Property purchase in Portugal is a
regulated process. Once you’ve sourced an suitable mortgage
and found the right property make a formal offer through the
selling agent.
Once a price has been agreed both buyer and seller sign a
preliminary contract, usually a Contrato de Promess de
Compra e Vende. This document will stipulate all terms and
conditions pertaining to the property transaction. A deposit
of between 10 – 30 percent is required at this preliminary
stage. If the buyer defaults, he loses the deposit. If the
seller defaults on the contract, he will have to refund the
equivalent of double the deposit paid by the purchaser.
A Government official (Notary) is responsible for the
legalities of the purchase itself and acts on behalf of both
the buyer and seller. Most purchasers feel it essential to
instruct an English-speaking solicitor to act solely on
their behalf to oversee the whole process.
You will have to apply for a fiscal number, (numero fiscal
de contribuente), the equivalent of a UK national insurance
number, from the local tax office. Your solicitor can
arrange this for you.
Once all conditions as set out in the original contract have
been met, the final deed is drawn up and signed by both
parties at a public notary office. You must
pay a transfer tax called IMT (Imposto Municipal Sobre
Transmissão Onerosa de Imóveis) before the purchase goes ahead.
The notary will witness the signing of the final deed and
the is registered at the local land registry office, and at the local
tax office.
Legal Costs for buying property in
Portugal.
The Portuguese Notary fee is normally around 1% which
also covers stamp duty. The Legal fees depend on the loan
amount and purchase price, it is wise to budget 1.5% - 2%.
Estate Agent’s Fees in Portugal.
Like the UK the
buyer does not have to pay estate agent fees when buying a
property in Portugal, but laws of property disclosure may
not be as strict as they are here. It is worth noting that
the agent acts on behalf of the seller and is paid from
commission once the property has been sold. In Portugal if
you sell the property you will need to pay estate agents
fees.
Property Tax in Portugal.
IMT tax (Imposto Municipal Sobre Transmissão Onerosa de
Imóveiss) is calculated either on the value of the property
or is determined by a new tax level based on type of
property and status of buyer. It is worth talking to your
solicitor to establish exactly what your liability will be.
If you've already found a property or need to start things moving quickly, you
can download our pre-qualification form now, sign and fax it
back to us, and we'll take care of the rest!
This information is for guidance only and does not constitute
regulated financial advice. We strongly urge you to take
appropriate legal and taxation advice before purchasing any
property. Overseas mortgages are not regulated
by the FSA
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