How much can I borrow & what proof of income is required?
Please note, that non-status/self-certification mortgage facilities are not available through the lender. All applications need to be supported by a minimum requirement of proof of income. If employed, copies of your last three month's pay slips & your latest P60 and an Employer’s Reference together with copies of your last three month’s Personal Bank Statements will be required or alternatively if you are self-employed or Director of a Limited Company with a shareholding of 20% or more copies of your last three years Audited Accounts plus copies of Personal Tax Returns for the last 2 years & copies of your last 3 Personal Bank Statements will be required on application.
Please note that it will also be necessary to obtain a copy of your credit file via Equifax or Experian.
The lender will NOT take into consideration any proposed Rental Income from the property for mortgage purposes/repayments.
Your loan is based on your joint net “take home” pay and is calculated on an affordability basis. All your existing liabilities including any mortgage/rent payments, personal and bank loans and any maintenance (i.e.: Divorce) payments together with your proposed Turkish mortgage payments must not exceed 45% of your net monthly income.
Example:
Net joint monthly income £ 2,500 times 45% of that figure is £1,125 minus existing monthly mortgage payment £ 700 – No other liabilities. This leaves a balance of £425 for a proposed Turkish Mortgage payment.
Essential notes for purchasing a property in Turkey
1) Please make sure that there is either a semi or full relationship between your citizenship country and Turkey. If there is not a reciprocal arrangement, it is not possible to purchase property in Turkey.
2) Please note that you will need to obtain a tax ID number (Vergi Kimlik Numarasý) which is required for opening a bank account, contracting goods and services (telephone, electricity etc) and dealing with local tax authorities. Your lawyer will advise you on obtaining one.
3) It is strongly recommended that you take the appropriate independent legal advice before signing the sales contract or paying a deposit.
4) Please ensure that you will have full title to the property on completion and that the appropriate documents are available for the lender.
5) Properties can be purchased either individually or in joint names – max 2 applicants.
6) All properties (in means of residential building) must hold a “use permission certificate” in order to have water, electricity and sewage.
7) Please make sure that the size and the location of the property is in compliance with Turkish Law. The properties located in Forbidden Military Zones cannot be registered into a foreigner’s name. Purchase of properties larger than 30 acres by a foreigner are subject to the approval of the Council of Ministers.
8) The lender shall obtain the security for the loan before Land Registry Officer and all parties to the sales transaction, including the vendor, purchaser (and/ or the actual owner in case cited in point 7 of this note) and/or a representatives of the parties need to be present. However a power of attorney may be used to sign on your behalf for the mortgage and land deeds.
9) Unless you understand Turkish well enough to communicate with the Land Registry Officer or to Notary (in case of executing sales contract), the Officers or the Notary 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 the Turkish Language.
10) Check with the estate agent/lawyer that you are aware of the costs charged by the authorities for purchasing a Turkish property.
11) Mandatory Earthquake insurance (DASK) will be required to cover the property if the property is a building. Life insurance is not mandatory with all lenders, but is advisory where not a condition of the loan.
12) Whilst all reasonable steps will be taken to secure the loan on your overseas property as soon as possible, delays may occur due to the Turkish legal and administration system.
13) Please note, that the lenders will not advance funds to purchase or renovate properties that are currently uninhabitable.
14) It is advisable to arrange your mortgage finance before agreeing to purchase a property.
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