Further information on purchasing a Turkish property
Please note, that non-status/self-certification mortgage facilities are not available through the lenders. All applications need to be supported by a minimum requirement of proof of income. If employed, copies of your last three month's pay slips & your latest P60 and an Employer’s Reference together with copies of your last three month’s Personal Bank Statements will be required or alternatively if you are self-employed or Director of a Limited Company with a shareholding of 20% or more copies of your last three years Audited Accounts plus copies of Personal Tax Returns for the last 2 year & copies of your last 3 Personal Bank Statements will be required on application.
Please note that it will also be necessary to obtain a copy of your credit file via Equifax or Experian.
The lender will NOT take into consideration any proposed Rental Income from the property for mortgage purposes/repayments.
EURO TURKISH MORTGAGE SCHEME ONLY: Your loan is based on your joint net “take home” pay and is calculated on an affordability basis. All your existing liabilities including any mortgage/rent payments, personal and bank loans and any maintenance (i.e.: Divorce) payments together with your proposed Turkish mortgage payments must not exceed 60% of your net monthly income.
Example: Net joint monthly income £2,500 times 60% of that figure is £1,500 minus existing monthly mortgage payment £700 – No other liabilities. This leaves a balance of £800 for a proposed Turkish Mortgage payment.
STERLING TURKISH MORTGAGE SCHEME ONLY: Your loan is based on your joint net “take home” pay and is calculated on an affordability basis. All your existing liabilities including any mortgage/rent payments, personal and bank loans and any maintenance (i.e.: Divorce) payments together with your proposed Turkish mortgage payments must not exceed 33% of your net monthly income after liabilities have been deducted.
Example: Net joint monthly income £2,500 minus existing monthly mortgage payment £700 and no other liabilities = £1,800 x 33% = £594 available for a proposed Turkish Mortgage payment.
STERLING, EURO & US DOLLAR TURKISH MORTGAGE SCHEME ONLY: Your loan is based on your joint net “take home” pay and is calculated on an affordability basis. All your existing liabilities including any mortgage/rent payments, personal and bank loans and any maintenance (i.e.: Divorce) payments together with your proposed Turkish mortgage payments must not exceed 40% of your net monthly income.
Example: Net joint monthly income £2,500 times 60% of that figure is £1,000 minus existing monthly mortgage payment £400 – No other liabilities. This leaves a balance of £600 for a proposed Turkish Mortgage payment.
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PLEASE MAKE SURE THAT THERE IS EITHER A SEMI OR FULL RELATIONSHIP BETWEEN YOUR CITIZENSHIP COUNTRY AND TURKEY. IF THERE IS NOT A RECIPROCAL ARRANGEMENT, IT IS NOT POSSIBLE TO PURCHASE PROPERTY IN TURKEY.
PLEASE NOTE, THAT YOU WILL NEED TO OBTAIN A TAX ID NUMBER (VERGI KIMLIK NUMARASI) WHICH IS REQUIRED FOR OPENING A BANK ACCOUNT, CONTRACTING GOODS AND SERVICES (TELEPHONE, ELECTRICITY ETC) AND DEALING WITH LOCAL TAX AUTHORITIES. YOUR LAWYER WILL ADVISE YOU ON OBTAINING ONE.
IT IS STRONGLY RECOMMENDED THAT YOU TAKE THE APPROPRIATE INDEPENDENT LEGAL ADVICE WHEN PURCHASING A PROPERTY IN TURKEY BEFORE SIGNING THE SALES CONTRACT OR PAYING A DEPOSIT.
PLEASE ENSURE THAT YOU WILL HAVE FULL TITLE TO THE TURKISH PROPERTY ON COMPLETION AND THAT THE APPROPRIATE DOCUMENTS ARE AVAILABLE FOR THE LENDER.
TURKISH PROPERTIES CAN BE PURCHASED EITHER INDIVIDUALLY OR IN JOINT NAMES – MAX 2 APPLICANTS.
ALL PROPERTIES IN TURKEY (IN MEANS OF RESIDENTIAL BUILDING) MUST HOLD A “USE PERMISSION CERTIFICATE” IN ORDER TO HAVE WATER, ELECTRICITY AND SEWAGE.
PLEASE MAKE SURE THAT THE SIZE AND THE LOCATION OF THE PROPERTY IN TURKEY IS IN COMPLIANCE WITH TURKISH LAW. THE PROPERTIES LOCATED IN FORBIDDEN MILITARY ZONES CANNOT BE REGISTERED INTO A FOREIGNER’S NAME. PURCHASE OF TURKISH PROPERTIES LARGER THAN 30 ACRES BY A FOREIGNER ARE SUBJECT TO THE APPROVAL OF THE COUNCIL OF MINISTERS.
THE LENDER SHALL OBTAIN THE SECURITY FOR THE TURKISH MORTGAGE BEFORE LAND REGISTRY OFFICER AND ALL PARTIES TO THE SALES TRANSACTION, INCLUDING THE VENDOR, PURCHASER (AND/ OR THE ACTUAL OWNER IN CASE CITED IN THE ABOVE PARAGRAPH) AND/OR A REPRESENTATIVES OF THE PARTIES NEED TO BE PRESENT. HOWEVER A POWER OF ATTORNEY MAY BE USED TO SIGN ON YOUR BEHALF FOR THE TURKISH MORTGAGE AND LAND DEEDS.
UNLESS YOU UNDERSTAND TURKISH WELL ENOUGH TO COMMUNICATE WITH THE LAND REGISTRY OFFICER OR NOTARY (IN CASE OF EXECUTING SALES CONTRACT), THE OFFICERS OR THE NOTARY IS OBLIGED TO CALL UPON THE SERVICES OF A QUALIFIED TRANSLATOR, BECAUSE THE LAW STATES THAT YOU MUST UNDERSTAND WHAT YOU ARE PURCHASING IN TURKEY. THE COST OF THE TRANSLATION SERVICES WILL BE PAID BY YOU. ALTERNATIVELY, YOU MAY WISH TO GRANT A POWER OF ATTORNEY TO A REPRESENTATIVE OF YOUR CHOOSING, WHO IS FULLY CONVERSANT IN THE TURKISH LANGUAGE.
CHECK WITH THE ESTATE AGENT/LAWYER THAT YOU ARE AWARE OF THE COSTS CHARGED BY THE AUTHORITIES FOR PURCHASING A TURKISH PROPERTY.
MANDATORY EARTHQUAKE INSURANCE (DASK) WILL BE REQUIRED TO COVER THE TURKISH PROPERTY IF THE PROPERTY IS A BUILDING. LIFE INSURANCE IS NOT MANDATORY WITH ALL LENDERS, BUT IS ADVISORY WHERE NOT A CONDITION OF THE TURKISH MORTGAGE.
WHILST ALL REASONABLE STEPS WILL BE TAKEN TO SECURE THE MORTGAGE ON YOUR PROPERTY IN TURKEY AS SOON AS POSSIBLE, DELAYS MAY OCCUR DUE TO THE TURKISH LEGAL AND ADMINISTRATION SYSTEM.
PLEASE NOTE, THAT THE TURKISH LENDERS WILL NOT ADVANCE FUNDS TO PURCHASE OR RENOVATE PROPERTIES IN TURKEY THAT ARE CURRENTLY UNINHABITABLE.
IT IS ADVISABLE TO ARRANGE YOUR TURKISH MORTGAGE BEFORE AGREEING TO PURCHASE A PROPERTY IN TURKEY.
