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Advice worth its weight in...Turkey - 19 December 2006

While some people will be sick of Turkey by the time Boxing Day comes around, others will spend the Christmas break looking for more. Christmas is the perfect time to spend a while researching where you would like to buy your place in the sun, and the possibility of spending next Christmas in your property in Turkey is perfectly realistic.

However, without the specialist advice of an experienced financial adviser, at least one recent overseas property buyer would have shuddered at the mere mention of traditional Christmas fare. Mortgages in Turkey have only become available this year, and Conti Financial Services was among the first companies to offer the service to their clients. Despite the new market, the expertise of the company in dealing with overseas property buyers has already saved one particular client from a difficult situation.

Managing Director Simon Conn explains: “A client contacted us who was about to sign on the dotted line to buy a depot, which is effectively a garage/storage like structure with no residential licence. The buyer was originally a cash buyer, raising funds on his UK property, as he was unaware mortgages were available in Turkey. Being a cash buyer meant there was no lender involved to carry out the usual checks on the property to ensure proper title existed. Effectively he would have had no comeback after the sale went through and have difficulty trying to sell the property in the future, unless it was properly re-registered for residential use.

“However, when Conti arranged a Turkish Loan secured on the property, that’s when the Turkish Lender discovered the buyer was about to sign up for a depot worth only €30,000, which was being sold for €90,000, and it was not registered as a fit structure for human habitation. Even if it was re-registered as an apartment this would still only value at €70,000. At this time we are still awaiting the latter to occur.”

While most overseas property companies, and in particular magazines and websites will urge you at every opportunity to seek specialist and independent advice on all matters pertaining to your overseas property, it is amazing how many people still insist on cutting corners.

Remember, buying a property overseas is likely to be the biggest or second-biggest purchase you ever make in your life, it’s worth making sure you get everything checked thoroughly by professionals.

For mortgage advice in over 40 countries, visit www.mortgagesoverseas.com

 

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