Mortgage Options
When considering the options for a mortgage on your overseas property there are a couple of choices to consider;

Do you consider raising finance on your existing property in the UK to cover the whole cost of your purchase abroad? A good idea if the interest rate in the country in question is a lot higher than it is here in the UK as you will pay a lot less in monthly repayments.

Do you secure a mortgage against the property from a local bank in the country of purchase? This can be a wise option especially if the interest rate is lower than the current UK interest rate. Most overseas mortgage / bank lenders will require up to 30% deposit on mortgages. However, you will need to give some thought to how you will service your mortgage payments each month especially if you are not living or earning in that country as you may well lose out on exchanging money each time to cover monthly expenses. Please view our Foreign Currency page for assistance.

Some Builders and developers may well offer their own mortgage facilities on their properties for sale. This can be beneficial to both parties depending on the logistics of the mortgage or loan facility. Always check and compare with the two options above before making your final decision.

Specific steps to buying real estate property in Turkey
Historically, it was very difficult for a foreign national to purchase and own real estate in Turkey. Indeed, overall it was nearly impossible for a foreign national to directly own a freehold (or complete and transferable) interest in real estate in Turkey. The laws restricting foreign ownership of real estate in Turkey had been longstanding.

In 2003, the Turkish government significantly liberalized the laws governing the ownership of real estate by foreign nationals in that country. Specifically, the Turkish government enacted what is known as a reciprocity law when it comes to the ownership of real estate by foreign nationals in that country.

The new law in Turkey governing the foreign ownership of real estate essentially provides that if a Turkish citizen can purchase and invest in real estate in the country from which the foreign national comes from, that same foreign national can then, in turn, purchase and own real estate within Turkey. Thus, citizens from many countries -- from the United States to the United Kingdom and many other nations in between -- can now purchase and own real estate in Turkey.

The Turkish government moved to change its extremely restrictive real estate laws in order to bring it more in line with the statutes and regulations governing real estate ownership that are in place in the other nations that make up the European Union.

When it comes to purchasing property in Turkey, it is vital that a very thorough title search be undertaken to make absolutely certain that the property is free and clear from an absolute and complete transfer to a purchaser. Therefore, it absolutely is imperative that a foreign national who is seeking to purchase and own real estate in Turkey obtain the services of a capable lawyer or solicitor who can work to ensure that the property is not encumbered.

The first step in the real estate purchase process for a foreign national (or anyone else in Turkey) is averbal offer on a property. If the offer is accepted by the vendor, a preliminary contract is drafted and executed between the buyer and vendor. At this time, the buyer is obliged to place a deposit on the property. Generally, the deposit amount is between 4% and 10%. The deposit is non-refundable if the vendor backs out of the deal without cause. (Cause for withdrawal includes a failure by the vendor to provide clear title to the property or the seller abandoning the deal.)

The final contract for sale of real estate in Turkey actually is at the Land Registry Office. A new title deed is then applied for directly at the Land Registry Office. The new title deed usually will be issued to the purchaser of the real estate within about three months.

One final factor that a property purchaser needs to keep in mind when buying property in Turkey; Unlike virtually anywhere else in the world, earthquake insurance is compulsory in nearly all locations of the country. Therefore, a purchaser of real estate in that country will want to make sure that this expense is factored into the overall costs of buying real estate in Turkey. Generally, the costs of such insurance is not prohibitive when it comes to buying real estate in Turkey.

Prime Properties always recommends using a Solicitor or Lawyer.