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Turkey Property Buying Guide
There are very few restrictions on UK nationals buying in Turkey. There are no restrictions if you wish to buy in the coastal resorts or major cities. If you wish to buy in country areas you will be limited to 2.5 hectares in size.
You will need to allow for the following fees:
- Solicitors' fees approximately £250
- Aegean Army Clearance - £150
- Translators fees - £80
- Notary fees - £70
- Power of attorney approximately £120
- Electricity connection - £125
- Water connection - £190
- Buyers tax 1.5% of the purchase price
- There will also be an annual maintenance fee on most developments. Normally this is between £350 and £450
From signing the contract you will normally be expected to pay the first payment of 25% within 30 days. Thereafter, on a new property, the balance will be in several installments over the build period. The final payment falls due when the keys are handed to the buyer.
Taxation
You will be expected to pay 20% tax on rental income in Turkey. If you hold the property for more than four years there will be no capital gains tax payable in Turkey. Should you decide to sell before four years you will pay 20% capital gains tax locally.
Mortgages in Turkey
Turkish Mortgages Rates for purchasing a property in Turkey (including Turkish residential property) are from approx 5.90% in Euros.
Please note, that if the property is being built, funds are not available until completion and the property has been legally registered in your name.
If you are considering purchasing a property in Turkey, Turkish Mortgages are available for the majority of Nationals for either House Purchase or re-financing for Home Improvements. Mortgages for other purposes may also be considered.
Current rate of interest
From approx 5.90% fixed for 1 year in Euros or approx 6.90% Fixed for 1 year in Sterling. Fixed Rate loans over 3 and 5 years, also available.
Please note, that if the property is rented, the Interest Rate is increased by 0.60% for all schemes throughout the mortgage term
Mortgage types on offer
- RE-PAYMENT MORTGAGES (CAPITAL & INTEREST)
- MAXIMUM TERM 25 YEARS, WITH AN AGE LIMIT OF 75 YEARS. MAXIMUM TERM IS 15 YEARS IF LOAN IS BELOW 150,000
- LOANS AVAILABLE IN EUROS ONLY
Mortgage process
The mortgage process in Turkey, is very similar to the majority of many other countries but can be at times slow, due to the Turkish legal and administration system.
You should be aware that property purchased in Turkey, especially raising of Turkish finance, can be more complicated and time consuming, therefore we would recommend that you start the mortgage process as early as possible to avoid such delays and make the buying process as smooth as possible.
Obtaining an acceptance for a mortgage, will give you the head start you need to purchase a property, this service can be arranged whether you have yet to visit Turkey. Once an acceptance has been completed, you will know the range of property values you will be able to purchase at and place an offer, confidently knowing that you can raise the necessary finance to support this.
Once an offer has been accepted on a property and the sale agreed, the initial sale of contract is draw up, a contract is normally drawn up, which would include the price, completion date and any other relevant information for the sale. An application of transfer is then made to the land registry, with deposits being paid, legal documents being drawn up, local tax numbers being registered. The property is also valued and the mortgage application reaches final sign off with the appropriate lender, with the mortgage offer being released and the property completion date being set, subject to the title deed transfer timescale, as the title deeds need to be in the same names as the mortgage application.
If you are purchasing a property "Off Plan" a mortgage can only be raised by completion of the property, however you are still able to apply for the funds and have the mortgage offer in writing, but the final survey will not take place and funds will not be made available until the property has been completed and fully inspected by the lender concerned.
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