Countries we lend for
Greece
The buying process
Greece, 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 ownership of land beyond doubt
in official records. However, it is easy to check for encumbrances against the
land or its owner and so it is crucial to have a well-qualified and reliable
solicitor. In Greece 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 can look forward to enjoying
life in your idyllic Greek home.
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 Greek home, 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 Paros or if you will
need to settle for a two bedroom house in a bigger island like Crete with some
land where you can have a villa in the future. 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 Greece 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 home in Greece 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 the Hellenic Association of Realtors
(in Greece) or organizations like the NAEA International incorporating the Federation
of Overseas Property Developers, Agents and Consultants (in the U.K.) - see
www.fopdac.com for more
information.
But be aware: agents usually receive their commission from the seller of the
property which may be an individual selling their own home, a developer or even
a local selling agent. 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 existing buyers of theirs.
Because the Greek 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.
Civil Engineer
Whether you appoint an architect to create the designs or a builder to carry
out the construction work, in Greece you will need to commission a Civil Engineer
if you want to have a property built to your own specifications. It is the Civil
Engineer who - on the basis of either his or an architect's plans - will make
all the necessary structural calculations, prepare a budget of costs and submit
these together with site plans to the local town planning office in order to
obtain a license to build. Whether you already own the land or are in the process
of buying it, Piraeus Bank can lend you money to help you create the house of
your dreams. We shall be very willing to ask the local branch of Piraeus Bank
to recommend a Civil Engineer although you should satisfy yourself as to their
competence as we cannot be held liable for the performance of a third party.
One thing that you can check for yourself or through your solicitor is whether
the Civil Engineer is licensed.
Remember: always get your solicitor to check the contract between you and the
builder and/or the Civil Engineer.
Valuer
Valuations, homebuyer reports or full structural surveys are not common in
Greece 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 Civil Engineer's 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.
Architect
Your purpose-built villa in Lefkas will be expensive so you may want to hire
an architect to design and draw up the plans of the property. Once these have
been agreed the architect should be instructed to go to tender in order to find
at least three to four construction firms for you to choose from. The architect
can be paid a fixed fee that you will negotiate at the outset to provide you
with plans and drawings or he may charge a percentage of the total budget in
order to project manage the construction. You will need to agree this from the
start and again it will be the job of your solicitor to ensure that you have
a strong contract.
Remember: In Greece, builders do not usually provide guarantees or offer indemnity
insurance. So it is important to get recommendations, check references and ask
to see work that they have previously carried out.
The Notary Public
In Greece, all property transactions are concluded in the presence of local
government officials called Notaries. They use a standardised 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.
The Solicitor
You have found the house of your dreams 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. In Greece there are many regional restrictions, building regulations
and architectural styles so you need to appoint a locally based solicitor to
carry out the necessary searches. Greece does not have a National Bar as in
other countries but the British Embassy in Athens has a list of English speaking
lawyers throughout the country.
Amongst the actions that your solicitor may take on your behalf will be to
apply to the local tax office for your own Greek Tax Identification Number (AFeMe)
as without it you will not be able to own property in Greece.
We will also require your solicitor to act as agent for the service of process
in Greece 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
Greece 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.