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20% Down payment……………………No further payments if rented out!!
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The British and American property markets have been hostile to non-cash foreign based buyers, as non-residents find it difficult to receive financial assistance from mortgage banks.
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The good news is that we now have a package whereby banks would finance the purchase of a property as long as the purchaser can make a down payment of 20% of the purchase price.
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| For the average long term mortgage, the rental income from this property would service the debt. |
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It is actually as easy as it sounds. So, if you have been wondering why people hardly pay for properties without financial aid in the UK & USA even when they can afford it, well,…….here lies your answer.
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| The foregoing leaves one in no doubt as to the viability of taking advantage of the mortgage package which is further facilitated by the relatively low interest rates in the UK & USA at this moment. |
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To give you a full picture of the mortgage calculations the following is an illustration.
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| PROPERTY: 1 bedroom apartment in Erit, London. |
| PURCHASE PRICE: |
£95,000 |
| Deposit from buyer |
£19,000 (20%) |
| Facility from bank |
£140,000 (80%) |
| Monthly repayment of £76,500 at 5.35% for 25 years |
£460 per month |
| Rental value |
£ 500/month |
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Steps in Obtaining your Overseas Mortgage
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1.
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Choose a property or at least, have a budget |
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2.
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Submit your completed mortgage application (a bank account will be opened for you at this point if you do not already have one with the bank)
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3.
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Appoint a solicitor (one can be arranged for you through our agency) |
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4.
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Pay the solicitor the search fee to begin the process
(usually between £200 - £300)
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5.
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When the search has been certified clean, pay the bank the valuation fee |
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6.
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Documents will be prepared by the appointed solicitor |
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7.
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The mortgagee issues a bank cheque for 20-30% of the value of the property to the appointed solicitor and contracts are exchanged
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8.
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By about the third week, the balance is requested for by the solicitor from the bank |
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9.
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Exchange of keys, title deeds and other relevant documents |
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