Mortgage lending in the Czech Republic.
Real estate in the Czech Republic is an excellent investment and personal purchase. But if you are not a citizen of this state, another EU country and do not have permission for permanent residence there, then the purchase will be accompanied by some peculiarities.
Unlike many EU countries, the acquisition of real estate in the Czech Republic is quite affordable for foreigners. In this case, the owner can become not only an individual, but also an officially registered company. If the buyer does not live in the Czech Republic and can not come at the time of the conclusion of the transaction, then all transactions can be carried out by proxy.
Registration of a loan in the Czech Republic in 2017.
You can buy a property in the Czech Republic by registering a mortgage. To do this, foreigners need to collect a certain package of documents, translate it into Czech and notarize the translation. Often, all the clearance issues are taken by banks. This is a commercial service, but it is better to entrust these transactions to professionals in order not to make a mistake in drawing up international-type documents.
For legal entities, a mortgage is often issued for 15 years at 3.5-5% per annum. The estimated value of the purchased object is found out and a pledge is made for it. There is a possibility of monthly payments in equal installments or an early repayment of a mortgage loan. In order to obtain a loan for the purchase of real estate in the Czech Republic to a legal entity, you must be able to immediately deposit half the amount of the value of the object. When submitting an application and all necessary documents, the review takes place within two to three weeks. There is a special condition & ndash; the founders are necessarily individuals, no more than four people.
To obtain a mortgage loan, an individual requires an initial payment of 30-40% of the value of the property. If the buyer is a person holding a residence permit or permanent residence, the contribution is 15-20%. Also there are other conditions, for example, you need to have a certain minimum income of the family, the money must come to the bank account. For individuals, a mortgage loan is issued at the same interest as firms, but for a period of up to twenty-eight years. Application for a loan is considered from one to two months.
It should be understood that in addition to the loan itself and payments on it, there are certain items of expenses that must be taken into account when registering a transaction. The main ones are:
the need to have on the account an amount not less than 1-2 mandatory monthly payments for a mortgage; The bank fee will be approximately one percent of the transaction value; property valuation; notary record; translation and certification of documents; registration of power of attorney, if necessary.
When buying a property in the Czech Republic, it is recommended to contact the intermediaries, which also will cost a certain amount of expenses, which depends on the type of service. Information support is the cheapest type of assistance. It assumes that the collection of documents and the filing of applications are carried out by the buyer on their own, and lawyers only provide the necessary information, advise in case of questions, help to choose a bank, possibly check the correctness of filling out the forms.
There are also other packages of services that minimize the participation of the buyer. In some cases, you can only come to the signing of documents and not worry about the rest of the process, as the team of specialists of our company (Binio Praha) will take care of everything, saving the client from them.