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Looking for an ideal location for a holiday home abroad? look at the Cape Verde islands and you can either use this home for yourself or for families to rent out to other holidaymakers. The value of these investments will increase over time as people realize the benefits of a Caribbean-style vacation in a safer and less developed environment that is much closer and easier to get to!

During the early days of tourist development, the foreign buyers encountered several issues in developing the tourist market in a country that has minimal experience in international finance. It is true to say, though, that the financial market has ‘caught up’ with the rest of the financial world and obtaining mortgages, for example, in the islands has become a much more straightforward process. Though, it is important to remember that the lifestyle in Cape Verde is laid back. Sometimes, things never happen as quickly as we would like them to.

Using the Capeverdean escudos,CVE which is the local currency used on the islands and having a bank account will be required of all non-residents that wish to take a mortgage out on Cape Verde Properties. Please consider that even though they are allied with Euribor, the interest rates in the islands can be as high as 3-4%.5% over the rate prevailing.

If you already own property in the islands it is possible to take out a Cape Verde Mortgage on your existing assets. Products are currently available to assist you in planning ‘staged’ payments that developers may require during building construction.

There are now many companies offering buyers mortgage facilities for Cape Verde and it will pay you to investigate carefully before selecting one. Before you sign a contract that commits you to buying a property, you should first decide what type of mortgage you can secure. You need to be sure of your finances before you sign a Contrato Promessa de Compra e Venda,due to there being financial penalties that could result if broken.

Many banks offer varying loan terms-anything from 15 year to 35 year terms. At age 60, some demand the mortgage be redeemed, while others will wait until age 75. There are a number of comapnies that extend loans to a maximum of 70 percent of the value that it has. Take the lowest figure., there are companies who will offer up to 85%.

When buying a property through a mortgage, you will likely find that your end financing and purchasing costs total 7% of the property price. This percentage comprises of personal legal costs of 1%; mortgage registry costs of 3% of the amount borrowed; Notary and Land Registry costs of 3% of the purchase price; and various mortgage and valuation fees of approximately 2%.

Your current income must be shown before getting a non-resident’s mortgage, which will include bank statements for the last 6 months, copies of pay check stubs, and 2-3 years of P60 forms. Banks and loan officers will ask for copies of tax returns and bank statements (business and personal), and copies of certified accounts going back for three years.

YOU WILL, ALSO, NEED TO PROVIDE DOCUMENTATION VERIFYING YOUR CURRENT ADDRESS, AS WELL AS, A CERTIFIED COPY OF YOUR PASSPORT. You may be asked for translated copies of these documents; a bilingual attorney can help with this request.

Many of the problems highlighted in this post can be avoided by using an expert in Cape Verde Mortgage such as International Mortgage Solutions.

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Filed under: Real Estate

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