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Italian Real Estate Restore Only Mortgage Explain 

 

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

Other Mortgages Procedures 

>> Buy & Restore mortgage in Italy procedure explain <<

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

>> Italian Buy Mortgage procedure explain <<

 

this page  explain on  two  examples 

the Italian Real Estate Restore Only mortgage 

procedure and payments 

 

 

MINIMUM  MORTGAGE  AMOUNT  ALLOWED

100.000 euro

 

- the  Real Estate Restore Only mortgage , can be provided on , existing home or ruines  , 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 

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 - The  Real Estate Restoration Mortgage to Restore in Italy  process  , can be start  ONLY , if  the property is newly certified as residential, have a restoration works calculation issued by a licensed technician (Geometra) or an Architect or a Civil Engineer , have restoration licence issued by a commune offices.

6 - The Real Estate Mortgage in Italy to Restore contract signature and first payment , according bank survejor expertise, can be only after has been made : the roof, the floors of the plants (for homes with multiple floors) the outer walls. 

 

According the italian banks standards requirements  , the foreign borrower  can receive a  mortgage  till max 50% (1) on the   property to restore, 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 is owner of a property yo 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  the mortgage deed the bank will pay to the borrower , a sum of  60.000,00 euro  ( equal to 50% of the property commercial value , at bank survejor expertise)

(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 property 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.   

 

 EXAMPLE  2 

 

Basis Points - 50% LTV mortgage

A) the borrower is owner of  a property whose the commercial value is   120.000,00 euro 
B) the commercial value of the property , once the rsstoration 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 mortgage deed  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 property 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. 

 

 

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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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