Viewing trip
Italian Property (the agents in this deal) will host viewing trips. Clients can expect a full tour
of the site, be taken to a show apartment 2KM from the site, assistance with opening up a
bank account and applying for a national insurance number as well as preparation for the
notary process.
Client pays for everything except transfers from airport. Flights to either Milapensa Milan or
Bergamo are relatively cheap and one night’s accommodation should be around 100 euros
or less.
Clients should be aware that set dates will be available based on flying to Milan on a certain
flight. Therefore more than one party may be collected and transferred at the same time.
Purchasing Costs
12% to 13.5% of the purchase price should be budgeted.
10% tax
€2500 notary costs for Contract
€2500 notary costs for mortgage documents
€1000 approx. for miscellaneous bank charges and other admin fees
0.75% mortgage fees
Payable on Final Act (completion).
Reservation Fee
How much: €5000 (in addition to 25% deposit)
Policy: Refundable until Preliminary Contract (Compromesso) signed – similar to exchange
of contracts.
Exchange
Deposit: 25% (on top of the €5000 reservation fee)
When Exchange: Compomesso signed within 30 days or sooner. We expect a
deadline of 30/11/06 to be set.
Completion date: 31 March 2007
Stage payments: No
Finance
Has the developer arranged a financial product for this deal?
Yes. Awaiting details from Italian agents in next two weeks.
We have also linked up with Conti Financial Services and Fidentia to provide mortgage
products as well. Fidentia Group have informed us that buyers can obtain interest-only
mortgages up to 60% LTV as long as they declare it as a purchase and not a pure
investment, i.e. they must intend to use it for personal use an rent out in between.
See separate documentation for these details. Note with Fidentia Group, the client applies
on-line.
Name, name of contact and their details, for a local bank providing mortgages?
See separate documentation for these details.
Available Loan to Value: Up to 80% typically. Note this is typically the purchase price, not the
actual market value.
Note that there are no Buy to Let or self-certifying mortgages in Italy. It is similar to France, in
that no rental income is assessed in the application. The bank looks at only net monthly
income, to see if it is three times the mortgage payment.
Also the purchaser cannot apply for a mortgage without the signed Compromesso. This
means they pay the €5000 then 25% deposit, sign Compromesso, prior to applying for the
mortgage. The Compromesso will naturally be subject to mortgage, so that if they cannot
obtain the loan then the contract is cancelled and deposit monies returned (minus bank
charges).
Fees: Expect from 0.75% to 1% of mortgage value.
Rates: Euro rates. Best so far quoted is 4.2% variable. But will vary according to
circumstances.
Type: Capital & Repayment only, up to 30 years.
Fidentia have both interest only (up to 60% LTV) and Capital & Repayment products (up to
80% LTV) with repayment periods from 15 to 40 years (or age 75). The shorter the period the lower the rate
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