Anyone Purchasing Property From Ambasun Bulgaria?

Horseman_2

Bulgarian banks are unsophisticated and have always been risk-averse. There has also never been much of a market in Bulgaria for mortgages as most Bulgarians pay cash for everything as you will know if you've ever tried to use a credit card.

The banks have never valued property on a "commercial" basis and were always very conservative.

If you had been fortunate to have had a completed apartment 12 months ago then raising a mortgage would not really have been a problem. For example there is a development next to Cornelia called White Fir Resort which sold out and I believe around 50% of the owners there got mortgages (the price of apartments in White Fir Resort were more expensive than in Cornelia).

From around Spring last year when the credit crunch began to take hold, the amount Bulgarian banks were willing to lend against property shrank like a salted snail. Basically they do not want to take any risk whatsoever and this is why you are being offered such a low amount. This is no different than someone also seeking a mortgage on a property next to the gondola, for example.

Please note that you have been offered a mortgage, so even the risk-averse bank doesn't think your property is totally worthless.

Clearly, at this moment, your property is not worth what you are paying for it. Is your UK home worth the same as it was 18 months ago? Whether you think that in 5 years time it will have recovered some or all of its value is something you have to make a judgement on.

JDC1

Hi Horseman,

Where i agree with you that my UK house is not worth what it did 2yrs ago the drop is only about 20% nationwide where as this is over 60%. We have been asked to 105,000 Euro for a property the bank has only vauled at 40,000 Euro. You do the maths. Its hardly a big risk for the bank to loan 20,00 Euro against the property, as even they would be able to recoupe that kind of money if the property was re-possesed. I feel that it would be foolhardy to think that the property would gain in value that much in 5 years!! Esp if the further development to the region is put on hold and the promsies made at the time of reservation are not forthcoming ie, access to the golf course etc.

Hi Noel1123, Yes we have made no further payment since September 2008. We have told Nadya that we are seeking independant legal advice about the termination of the contract.

JDC1

Hi Horsman,

I would also like to add that me and my husband only started on this venture last June , Ambasun and the indepdant mortgage advisor we saw in Bansko assured us that we would get a mortgage due to our affordability rating. It was only in october after a disupte over the square footage of the appartment all this came to an end and the bank decided they would not take the risk on leading us the amount we had asked for and came up with the lower alternative.

If this kind of knowledge was out there last spring why were we offered the mortgage as viable form of funds the purchase. Shorly someone should have said you dont stand a chance of getting the money before any payments were made. In the UK you dont pay your deposit until the mortage has been agreed so to aviod paying for somthing you cant have. That was the point i was trying to make.

Also trying to find out why now the first payment isnt refundable?

SouthCoast

Similar speculative developments in the UK are going bust or are being mothballed.

Why should Bulgaria be any different?

JDC1

I know SouthCoast .... thats the worrying part!! Trying to balance between keeping the dream alive and stopping it turning into a nightmare.

Kind regards

ILW

JDC1 wrote: »

Hi Horsman,


In the UK you dont pay your deposit until the mortage has been agreed so to aviod paying for somthing you cant have. That was the point i was trying to make.

You can if you are dopey enough, you just lose the money.

Phil_J_2

Are people able to give us any feedback from yesterdays meeting that was held, as I was unable to attend??

noel1123

Hi guys

I know of a chap also caught up in this mess. He is using an independant solicitor in Sofia who he deems excellent trustworthy and prompt.

Her name is Asya Mandjukova and her e-mail addresws is
[EMAIL="amandjukova@gpng-law.org"]amandjukova@gpng-law.org[/EMAIL]

If anybody feels they want advice or to get contracts assessed etc you can use this firm.

Also I received independant legal advice myself from a uk firm and their website is www.lawoverseas.com

Horseman_2

JDC1 wrote: »

Hi Horsman,

Ambasun and the indepdant mortgage advisor we saw in Bansko assured us that we would get a mortgage due to our affordability rating. It was only in october after a disupte over the square footage of the appartment all this came to an end and the bank decided they would not take the risk on leading us the amount we had asked for and came up with the lower alternative.

If this kind of knowledge was out there last spring why were we offered the mortgage as viable form of funds the purchase. Shorly someone should have said you dont stand a chance of getting the money before any payments were made. In the UK you dont pay your deposit until the mortage has been agreed so to aviod paying for somthing you cant have. That was the point i was trying to make.

Also trying to find out why now the first payment isnt refundable?

JDC1, were Ambasun and the mortgage adviser independent of each other? You can't necessarily believe the selling company as they have a vested interest but if a truly independent adviser told you at the time you would get a mortgage it is probably what he/she truly believed at that time. As I said, the mortgage market fell off a cliff during last year so what was the case one week was not the case the following week. These things are as difficult to predict as HBOS losses.

Unfortunately, you and thousands of other people then get left with a big gap to fill.

You were also buying off-plan so you had no alternative but to make the stage payments knowing that you can't finalise a mortgage until the building is ready for occupation. That is the risk of off-plan as opposed to buying an already completed apartment.

JDC1

Hi Horsman,

I agree with your comments thats why were are thinking of cutting our loses now before getting in any deeper or trying to raise the money in the UK to be left without a liveable appt and huge debt which may then have an impact on our UK home!! Oh well, like they say you live and learn by your mistakes. Investing in this has been a huge one.

Kind regards JDC1