Countries we lend for
Bulgaria
The buying process
Bulgaria, as with all countries, has its own processes and requirements for
buyers of property. Most parts of the country do not yet have a Land Registry
so it is not always straightforward to track down the title of the land and
check licenses and permissions obtained by the developer and so it is crucial
to have a well-qualified and reliable solicitor. In Bulgaria however, unlike
the UK, the funds for the purchase are not placed with the solicitor so you
will need to establish a bank account and put in place all the necessary documents
for its operation by you or your solicitor (if you choose to give him Power
of Attorney).
Our value, beyond giving you the required finance to buy your chosen property,
is to help with any questions you may have when you feel unsure or concerned
and to guide you through the process so that you complete on your purchase smoothly
and promptly
Important Partnerships
As when buying a house anywhere in the world you will need the services of
a number of experts whom we choose to call 'partners' as their professionalism,
service standards, knowledge of the market and ethos will be central to a trouble-free
purchase.
The Mortgage Lender
In order to avoid disappointment, the first partner you should contact if you
need to raise a loan for your purchase is a mortgage lender. If you intend to
take out a mortgage on your new Bulgarian property, we hope that the mortgage
lender will be us - Piraeus Bank. By completing our simple questionnaire
or applying online you can establish very quickly whether
you can afford to buy the three bedroom villa with pool in Balchik or your penthouse
in Bansko. Knowing the amount that you can afford will lead you to the right
property sooner rather than later and without any disappointment and heartache.
The added value that we will bring - in addition to a flexible and competitive
mortgage product - is the knowledge and range of services that Piraeus Bank
offers in Bulgaria and on which we can draw in order to provide you with the
level of service and comfort you need in order to conclude your purchase.
And of course if we lend against your property in Bulgaria it is on the basis
that it offers good security so we are equally keen in its legality and value.
The Agent
Despite the ease that the internet offers in researching the market, you will
invariably at some point come into contact with an estate agent. Many of these
operate locally even when you call a UK telephone number and some have their
offices or practices in the UK. The important thing is to satisfy yourselves
that they are professional, established for a number of years and a member of
a regulated professional association such as NAEA International which now incorporates
the Federation of Overseas Property Developers, Agents and Consultants (in the
U.K.) - see www.fopdac.com for more information.
A good agent will not misrepresent anything to you but is not there to protect
your interests. This is why you should always appoint a solicitor to act on
your behalf, as you would do when buying property elsewhere.
The Developer
When buying a brand new property, particularly an apartment, you are likely to be buying from a developer. Even if an agent is involved in
the transaction, check whether the developer has a track record and if buying
off-plan that they have the financial means to finish the property. Ask to see
property they have previously built and to speak to buyers of other property
they have previously built. Because the Bulgarian property market is relatively
young, some of the developers are newcomers. It is important to satisfy yourselves
as to what other businesses they have been involved in and how successful they
have been: it is more reassuring if the developer you intend to buy from is
an established businessman than if he is a local farmer who simply owns lots
of land.
Valuer
Valuations, homebuyer reports or full structural surveys are not common in
Bulgaria although banks will always obtain a basic valuation for the purpose
of a mortgage. Depending on the type and age of a property and if you have any
doubts whatsoever as to the property meeting current building and safety regulations,
you are advised to obtain a Structural Surveyors report. Such a report is of
the utmost importance if you buy an old property in order to renovate it as
apart from the obvious refurbishment costs you may need to spend a great deal
of money before the property can meet current building and safety regulations.
The Notary Public
In Bulgaria, all property transactions are concluded in the presence of local
government officials called Notaries. They use a standardized contract in which
they incorporate the details of seller, buyer and the property. They are also
responsible for calculating the value of the property for tax purposes and ensuring
that the relevant taxes have been paid before title can pass. If you qualify
for a Piraeus Bank Mortgage, we will advise you of these costs early on in the
process.
The Solicitor
You have your ideal property and you want to go ahead with the purchase. There
is a lot of information available on the internet as to the process but no two
cases are ever identical because there may be different factors affecting the
land, the seller, the developer, the agent and even the particular regulations
that apply. It is therefore important that you appoint a locally based solicitor
to carry out the necessary searches. The Bulgarian Embassy in London has a list
of solicitors that they can recommend and we too know of a number of experienced,
English speaking solicitors through transactions carried out by satisfied customers
or through our network of branches.
Amongst the actions that your solicitor may take on your behalf will be to
apply to the local tax office for your own Tax Identification Number as without
it you will not be able to own property in Bulgaria.
We will also require your solicitor to act as agent for the service of process
in Bulgaria and confirm to us their acceptance of this appointment in writing.
This is normal practice when banks lend on assets held overseas and is a service
only ever called upon in the unlikely event that the bank needs to realize its
security.
The Accountant
Whether you buy a holiday home, an investment property or intend to move to
Bulgaria permanently, you should engage an accountant as the simple ownership
of property necessitates the submission of an annual tax return. Depending on
the value of your property, you may be liable to pay annual taxes.