Buying a property in Turkey

Peneil

We are looking into buying a villa in Turkey and would really welcome some advice on the possible ways of raising the finance, whether it be in the UK or through a Turkish Bank.
The value we are looking to raise is c£170k, and we have about £150k equity in a mortgaged house in the UK as well as c£250k equity in a mortgage free property also in the UK.
Apparently the Turkish Banks will only lend up to 60% LTV of the property and their interest rates are currently between 9-10%.
From what I understand to apply for a homeowners loan in the UK you need to have a mortgage on a property, so we cannot raise capital in this way on the mortgage free house.
Could anyone advise on possible options please.
Many thanks

gfplux

One piece of advise. If you have a loan/mortgage not in pounds sterling remember there can be a huge currency risk if your income is in pounds.
Second piece of advise never expect the rental income of your overseas property to match what is promised.
Good luck

inmypocketnottheirs

For what it's worth I would rather hammer a rusty 6" nail through my own foot than buy a property in any country where I don't speak the language fluently and spend at least enough time occupying the property to make it worthwhile.

ruggedtoast

Peneil wrote: »

We are looking into buying a villa in Turkey and would really welcome some advice on the possible ways of raising the finance, whether it be in the UK or through a Turkish Bank.
The value we are looking to raise is c£170k, and we have about £150k equity in a mortgaged house in the UK as well as c£250k equity in a mortgage free property also in the UK.
Apparently the Turkish Banks will only lend up to 60% LTV of the property and their interest rates are currently between 9-10%.
From what I understand to apply for a homeowners loan in the UK you need to have a mortgage on a property, so we cannot raise capital in this way on the mortgage free house.
Could anyone advise on possible options please.
Many thanks

Could you not find an off plan property to buy, off a builder you've never heard of, with a contract in turkish, just to add a bit more risk?

Riddzy

Hello, I used to work for a Turkish property company and we used a Turkish mortgage advisor (based in the UK) who could probably give you some free advice. Best to PM me for details.

By the way, ruggedtoast has summed up the pitfalls of buying abroad completely. But if you're sensible and savvy there is no need to fall into any of these traps. Not one of my clients did.

sham63

Looks like another Drive-by newbie thread.....!

Riddzy

Have been on here three years if you'll search my username posts! Don't get the scorn heaped upon 'newbies' on boards like these.

picklepick

sham63 isn't on about you Riddzy, he's on about the OP. Post a question and never come back to check the responses!

breadlinebetty

gfplux wrote: »

One piece of advise. If you have a loan/mortgage not in pounds sterling remember there can be a huge currency risk if your income is in pounds.
Second piece of advise never expect the rental income of your overseas property to match what is promised.
Good luck

Oh God, never never believe what sellers tell you about rental incomes on Turkish homes!

If you buy off-plan (which is insanity) the developers will GUARANTEE you two years rental income. Of course, everyone knows guaranteeing ANYTHING except death is nonsense - but people fall for it. But what the developers don't tell you is that they knock on maybe 10k or 20k on the price of the property - and give you some of it back - pretending its rental!:eek:

As for resales, the owners will often tell you the same - but it's a load of old lies....most holidaymakers go all-inclusive these days - so the private rerntal market is dead as a dodo.

breadlinebetty

Riddzy wrote: »

Hello, I used to work for a Turkish property company and we used a Turkish mortgage advisor (based in the UK) who could probably give you some free advice. Best to PM me for details.

By the way, ruggedtoast has summed up the pitfalls of buying abroad completely. But if you're sensible and savvy there is no need to fall into any of these traps. Not one of my clients did.

Why on earth would a Turkish mortgage advisor give up their time offering FREE advice???:rotfl:

Incidentally, nearly each and every Brit who worked for a Turkish estate agents was working illegally, and still are, unless they have a work permit - which are nigh impossible to obtain. Therefore, we can safely assume any Brit who is an estate agent in Turkey is prepared to lie and deceive.

breadlinebetty

Peneil wrote: »

We are looking into buying a villa in Turkey and would really welcome some advice on the possible ways of raising the finance, whether it be in the UK or through a Turkish Bank.
The value we are looking to raise is c£170k, and we have about £150k equity in a mortgaged house in the UK as well as c£250k equity in a mortgage free property also in the UK.
Apparently the Turkish Banks will only lend up to 60% LTV of the property and their interest rates are currently between 9-10%.
From what I understand to apply for a homeowners loan in the UK you need to have a mortgage on a property, so we cannot raise capital in this way on the mortgage free house.
Could anyone advise on possible options please.
Many thanks

Have you got a link for this villa?

Properties in Turkey are just not selling (it's only the Turks who are buying - and they drive a VERY hard bargain!!!) and in some parts of Turkey you can buy a 3 bed villa for as little as £50k. So if you're looking at one for £170k it must either be very special and be in a very good location with great views of the sea - or you're already getting ripped off....

You've only got about £400k equity (that's providing you haven't over-estimated) and whilst that may seem quite good to some, it doesn't go that far in many parts of the UK - like London or the south east for example. Especially when you take into account EA fee, solicitors, surveyors etc......

So if you're prepared to risk almost half of that - and it all goes tits up - what will you do then?