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| INTRODUCTION |
 If
you have found that dream home but do not have the
full purchase price, mortgages are now available
from various reputable lending sources. It is important
however that you seek the best mortgage to suit
your own requirement. As we are totally independent
of any lender we can ensure you are offered most
competitive lending rates and conditions to meet
your own needs.
A saving of just 1/2% on the interest rate over
a number of years can mean thousands of pounds saving
to you. |
| From our local
offices in Loule we can provide a fast and efficient
service with Portuguese administration staff that
speak fluent English. We can help you through each
step of this, sometimes complex, procedure of raising
finance and buying property in Portugal. |
| LOAN CONDITIONS |
Loans are normally
available up to 75% of valuation or the purchase
price which ever is the lower. Life insurance, assignable
to the lender, on the life of the beneficial owner
of the property may be required.
Alternatively if an interest only loan is required,
an endowment policy can be underwritten to repay
the loan at the end of the term. |
| Loans can be
granted for up to a maximum of 25 years with 15
years being the more normal term to be considered,
up to a maximum age of 70. The lender, will of course,
want to seek confirmation that the borrower has
sufficient income to service the monthly mortgage
repayments. We are able to provide a full costing
on request. |
| Minimum loans
available are from £25,000 at which level
it is normally considered that the annual costs
of setting up such a mortgage using An offshore
company may well be too costly to be practical and
so in a limited number of cases it is possible to
lend to an individual when the mortgage must be
registered in Portugal which itself is an extra
cost. |
| Certain
mortgage lenders have set a minimum figure of £40,000
or the equivalent in other major currencies and
there is generally no upper limit depending on valuation
and the status of the purchaser. |
| In certain cases
we can consider seeking to obtain financing for
development projects via mortgages or Lease-Purchase.
For individuals looking to invest in rental properties
in Portugal, a Buy to Let scheme is also available.
Where property is to be constructed a number of
lenders are prepared to release stage-payments. |
| CURRENCY OPTIONS |
| The loans are
available in most major currencies from the different
lenders with interest rates varying between 1% and
2.0% over base rate in the currency chosen. |
| MORTGAGES ON
UK PROPERTIES |
| It may be more
advantageous to raise mortgage funds or re-mortgage
an existing UK property. With the vast amount of
lenders in the UK willing to lend we can source
the best rates available, which in some cases are
better than those offered against Portuguese property.
If the UK property is rented out, again various
UK lenders are offering attractive Buy to Let Mortgages. |
| USE OF OFFSHORE PROPERTY
HOLDING COMPANY (PHC) |
| At the same time
the use of a PHC to own a property in Portugal has
a number of advantages which can be best set out
as follows: |
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• The elimination
of the need for the lender to register a charge
over the property in Portugal
• The avoidance
of local inheritance taxes on the property in
the event of the death of the beneficial owner.
• The avoidance
of the local succession laws, which can stipulate
to whom the property must pass on the death of
the owner.
• The mitigation
of capital gains tax, which might arise on the
resale of the property.
• The mitigation
of Sisa tax, notarial and registration fees upon
resale of the property.
• The possibility
of setting up a trust to own the shares of a company
to guarantee confidentiality as well as providing
a number of fiscal advantages.
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| Although it may
seem that the situation is somewhat complex and
certainly each case does need to be considered on
its own merits, |
GRAHAM BARKER CONSULTORES
make the first consultation freely
available in order that the best advice may be
given. Contact
us today.
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Independent
advice means we act for you and not any one particular
lender
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YOUR HOME IS AT RISK IF YOU
DO NOT KEEP UP REPAYMENTS
ON A MORTGAGE OR ANY OTHER LOAN SECURED ON IT
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