Mortgaging a property abroad????

£Ronnie

Can someone advise me of the best way to go about mortgaging a property abroad, ie Ireland. We will have about stg£75K deposit, and are looking at a property for about €280K.

Would an english lender lend to us? Or should we try to borrow from an Irish lender. At the moment we do not have jobs lined up in Ireland but do have somone who can go guarantor.
How do people who borrow for property in Spain etc borrow and then pay it back? (I am particurlarly referring to exchange rates and comission fees each month from € to stg£, not find the money to repay;) )

Thanks in Advance
Ronnie

Ian_W

Hi £Ronnie,
From the wording of your post, it sounds as if you may be going to live in Ireland [no job there yet, etc] but then you're asking about changing currency [€ to £ etc] so I'm not too clear whether you're looking to buy a second/holiday home or emmigrate???

Can you clarify as it will affect the sources of lending for what you plan?

£Ronnie

Hi Ian,
Yes we are planning to emigrate 'home' to Ireland.
My parents are doing all the legwork over there.

In a nutshell, initially when we looked into mortgaging a property in Ireland, a solicitor told my parents that the best way would be for them to borrow in Trust for us. This would avoid inheritance tax etc. He confirmed that we would be able have six months with no payments at the start of the mortgage. Great we thought, just sell here buy there, get over there and then start looking for jobs etc.

So we found a property we really like and had offer accepted, and deposit paid. (Slightly different process there)
So its ours now, just have to do all the legal paperwork, etc etc.


Yesterday my parents went "mortgage shopping", and it turns out that the solicitor gave them some wrong info. Due to my fathers age (56) they will only lend to him until he is 65/70 at the most. This makes the monthly repayments astronomical, therefore not an option.
Alternatively, we can borrow the money with my parents names and my and oh names on the loan, this involves a ridiculous amount of paperwork being sent over eg payslips etc, which I dont mind but they also want our employers to complete some forms but I don't want to tell my employer yet....

No lender that my parents have approached will take into account that we will have a lump sum to pay once we complete on our english house...

I know this is a long post and thanks for taking the time to read it, i hope it clarifies our situation without waffling.

HelpWhereIcan

£Ronnie wrote:

Yesterday my parents went "mortgage shopping", and it turns out that the solicitor gave them some wrong info. Due to my fathers age (56) they will only lend to him until he is 65/70 at the most. This makes the monthly repayments astronomical, therefore not an option.

Just a quick thought, have your parents investigated the possibility of setting the mortgage up as interest only (even for a short period of time). I am no expert in the Irish market, but believe that it is similar to ours so they may find this can be done. This would mean that the payment needed would be lower than an 18 year repayment mortgage and will be more manageable for you. Would need to be a short term optiion though, until you got work etc.

As far as mortgages in Ireland go, I would think it needs specialist advice from a dedicated company. One I can think of (although I am nothing to do with them and am not reccommending them) is Conti Financial Services

http://www.mortgagesoverseas.com/country.asp?Country=132

and the link is their page on mortgages in Ireland.

Another alternative may be to look at obtaining the rest of the purchase money you need using a remortgage or bridging loan secured on your property here that can be repaid without penalty when you sell your house here. That will obviously depend on you having enough equity, income etc here.

I would say you need specific advice from a whole of market broker who can gett all the pertinent information together and make a reccommendation for you.

Hope this helps

silvercar

Bear in mind that your sellers could well need to get a certain price for their house to make the sale worth doing. If they cannot afford the property they want to buy with the amount your paying them the deal won't happen. They may feel that you are getting the property at 5 grand less than the asking price and so should pay for new drains etc yourself. Not what you want to hear I know but keep an open mind. You say you can't afford to do the work, but if you have to find a third property you will have to pay out for another survey.

£Ronnie

Thank you, will look into all your suggestions.....
Any other advice/suggestions welcome.......

£Ronnie

silvercar wrote:

Bear in mind that your sellers could well need to get a certain price for their house to make the sale worth doing. If they cannot afford the property they want to buy with the amount your paying them the deal won't happen. They may feel that you are getting the property at 5 grand less than the asking price and so should pay for new drains etc yourself. Not what you want to hear I know but keep an open mind. You say you can't afford to do the work, but if you have to find a third property you will have to pay out for another survey.

Wrong thread?

Ian_W

£Ronnie wrote: Wrong thread?

Either that, or on something a bit strong!! :rotfl:

Basically can't think of too much more than HelpwhereIcan has suggested. Do independent mortgage brokers exist in Ireland like here? If they do then I'd get your parents to contact one or two, they should be able to search the whole of the Irish mortgage sector and may have the knowledge already of mortgage products that may fit your needs.

Other than the suggestion of a non-tied in remortgage to raise capital on your UK property before you sell I'm not aware of lenders here who would lend on Irish property - doesn't mean there aren't, just I don't know any. But what about the Irish Banks with a presence in the UK, AIB & BOI spring to mind. They're both active in the UK and I think the UK mortgage market so might be worth a try.

With regard to Conti, I've never dealt with them but checked them out a good few years ago re a Spanish mortgage. Found them very expensive on charges and arranged it myself cheaper but certainly worth contacting.

BoL.