Investment Ltv Mortgage Property

Since early 2009, a wave of customers approached New Estate Finance (part of the group New Estate) seeking advice, assistance and funding in a desperate attempt to avoid the repossession of their investment and holiday homes . The vast majority of them come from the same well-known promoter who operates several projects in the Razlog / Bansko region. Unfortunately, they all have a similar story to tell, but some more extreme than others.

Thanks to dubious sales techniques and the use of so-called independent counsel, many buyers have been duped into singing contracts for goods and to more than 2000 Euros / sqm. While some properties have really peaking at this value, it would have been in the middle of 2007 and in the immediate vicinity of the gondola in Bansko. Never has the property in the district and even less Razlog near or on the Ian Woosnam golf course never been to this value. It is hardly surprising that reviewers of the Bank are now returning figures of 800 Euros / sqm up to the very mortgage applicants who possess these properties.

Many buyers have been victims of vendors ply their own culture, which properties oversold, along with more than twice their real value, taking 50% payment as deposit (the actual full) while promising a mortgage the other half. Most were convinced to use the services of lawyers recommended by the developer and mortgage brokers.

Review the conditions under purchase contracts conveniently redefined "completion" is in progress when the issue of authorities of a certificate, called Law 15, on receipt of a final payment of the full balance is due by the buyer. To put this in perspective, Act 1 to 16 are the standard terminology used to describe Bulgaria and certify various stages of construction, a parcel of agricultural land through a well-rounded. Act 15 is the penultimate certificate, which describes a construction site in an advanced stage, is not a well-rounded living. Act 16 is the last step and is the most rigorous inspection by the authorities, the connection to water and electricity, etc. Once completed, the authorities shall grant certification of Act 16 or " Residence Permit ", which is also the earliest point at which a property is legally habitable. Naturally, it is much cheaper to build one project with the Law of 15 steps, then request the end, the Act 16 requires more funds, equipment, licensing, manufacturing, the work involved, etc..

In the current climate, no bank around the world will loan against a property Bulgaria, before he reaches the Law 16, but payment is required by the buyers before it was reached and they feel misled.

The so-called "independent counsel encouraged customers to sign these contracts because they are actually on the payroll of the developer. In addition, after considerable expense in advance for their work, mortgage brokers failed to deliver anything the credit crisis claiming "has ceased to supply mortgage loans that banks are lending. In truth, the lawyer encouraged to sign a contract that demanded full payment before a property has been completely finished, waiting for the mortgage broker does not intend to provide financing options as they 1000-1500 had already euros "fee and to gain nothing to complete their work promised.

Notice of Completion, as buyers have received "and" mortgage declined "Notice simultaneously they are in a quandary. Without any support from the lawyer, the developer claims that they can not conveniently be held responsible for banking policy, pending the skins mortgage broker behind the recession.