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ITALIAN  REAL  ESTATE  MORTGAGE  SERVICE

 

 to non-italians to buy, restore,  refinance, residential properties in Italy

 

The Italian Burocracy Guideline for non-italians

Professione esercitata a norma della legge 14-01-2013-nr.4

 

Buy & Restore Mortgage in Italy Explain 

 

>> cliccare qui per la pagina dedicata agli italiani residenti all'estero  <<

 

Other Mortgages Procedures 

 

>> Restore only mortgage in Italy procedure explain << 

 

>> Refinance italian mortgage ( The Surroga) procedure explain << 

 

>> Buy Mortgage in Italy procedure explain << 

 

this page to explain on  two  examples ,  the Italian Buy & Restore mortgage procedure and payments .

 

 

 

MINIMUM  MORTGAGE  AMOUNT  ALLOWED

100.000 euro

 

- Buy and restore Real Estate in Italy , can be provided on : property not in living state of use , Ruine to Restore ,  ONLY  at following conditions :

1 -  The value of the property, at the time of the loan request, is the commercial value at the end of the restoration, calculated on the basis of the values shown in the metric calculation issued by the designer. The assessment must be confirmed by the Bank's surveyor.

2 - Mortgage Amount from  100.000 euro in case of buy and rebuilding ruines or  in case of restore living homes 

3 - Mortgage Duration from 10 years 

4 - Fixed or variable interest rate is applicable  (for some banks the borrover may request to switch to the fixed interest rate, after the mortgage has ben fully disbursed by the bank and the restoration work , completed) 

5 - With a restoration  licence issued  , for immediate restoration works , on more payments  .

6 - The bank start the mortgage payments  if is in according to the  builded structure value , according bank survejor expertise 

 

 According the italian banks standards requirements  , the foreign borrower  can receive a  mortgage  till max 50% (1) on the   property commercial value , calculated once the restoration works have finished . This calculation has to confirmed by the bank survejor . (1 - some banks pay max 60%) 



EXAMPLE  1 

 

Basis Points - 50% LTV mortgage

A) the borrower buy a property to restore whose the commercial value is   120.000,00 euro 
B) the commercial value of the property , once the restoration works are finished will   400.000,00 euro 
C) the borrower has an income that they can receive a mortgage for    250.000,00 euro 

 

Therefore the bank will pay a maximum mortgage of   200.000,00-euro

 

1> At signing (1) of the deed of  purchase/ mortgage the bank will pay to the borrower , a sum of  60.000,00 euro  ( equal to 50% of the property commercial value , at purchase time)

(1)   according italian  mortgage law , the payment will be made  afther the mortgage on the property is estabilished , usually 5/10 days after registration of the deed  of the purchase .

 

From  the mortgage granted for 200.000,00 euro ( - 60.000,00 euro ) remain to pay 140.000,00 euro 

 

2> The bank pay to the borrower the remaining  140.000,00 euro , during restoration works , in  more SAL ( state of woks advancing ), based on  expertises  maked by bank survejor ,  asked by borrower time to time when him necessity of money to proceed.  To receive the last payment , is necessary that the borrower  provide  to the bank the certification that the property is habitable . The final payment must be made no later than 24 months from the date of the mortgage contract signing.   

 

 

 EXAMPLE  2 

 

Basis Points - 50% LTV mortgage

A) the borrower buy a property whose the commercial value is   120.000,00 euro 
B) the commercial value of the property , once the restoration works are finished will   300.000,00 euro 
C) the borrower has an income that they can receive a mortgage for  150.000,00 euro 

 

Therefore the bank will pay a maximum mortgage of   150.000,00-euro

 

1> At signing (1) of the deed of purchase/ mortgage the bank will pay to the borrower , a sum of  60.000,00 euro  ( equal to 50% of the property purchase commercial value )

(1)   according italian  mortgage law , the payment will be made  afther the mortgage on the property is estabilished , usually 15 days after registration of the deed  of the purchase .

 

From  the mortgage granted for 150.000,00 euro ( - 60.000,00 euro ) remain to pay 90.000,00 euro 

 

2> The bank pay to the borrower the remaining 90.000,00 euro , during restoration works , in one or more SAL ( state of woks advancing ), based on  expertises  maked by bank survejor ,  asked by borrower time to time when him necessity of money to proceed.  To receive the last payment , is necessary that the borrower  provide  to the bank the certification that the property is habitable . The final payment must be made no later than 24 months from the date of the mortgage contract signing.   .   

 

 


VERY IMPORTANT  >  in any case , in the time between the first and the last mortgage payment , the borrower will be pay the bank installments composed only of  the interest on principal  payed  . The full first payment of principal and interest will be required  AFTER  the bank have been payed the full amount of the granted mortgage .  

 

 

 

ATTENTION 


all examples is ONLY examples, the real mortgage value , mortgage payable quote , mortgage interest , are subject to the finally Bank approvation . 

INTEREST RATES INFO 

Fixed interest rate is freezed at mortgage contract signature and remain freezed for all mortgage duration . The fixed Interest is the sum by the Bank Spread on the term of the mortgage in year (duration) , added to Eurirs correspondant , working at the date of mortgage contract signature. 

Variable interest rate  vary month by month according Euribor monthly basis . The variable interest rate is the sum by the Bank Spread on the term of the mortgage in year (duration) , added to Euribor correspondant , working at the date of mortgage contract signature. 

 

>> Klick here to Go back to Italy Mortgage Guideline <<

 

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME 

Your home may be repossessed if you do not keep the mortgage installments

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