ITALIAN REAL ESTATE MORTGAGE
FOR ITALIAN EXPATRIATES
RESTORE ONLY MORTGAGE
Other Mortgages Procedures
In line with the standards of Italian banks currently in force for restoration mortgages, the borrower can request a mortgage equal to a maximum of 50% of the commercial value that the property will have at the end of the restoration works carried out on the property. This value must be confirmed by the bank's expert.
A) the borrower is the owner of a property to be restored, the value of which at the beginning of the restoration is indifferent
B) the value of the restoration works will be 400,000.00 euros
C) the borrower has an income sufficient to be able to receive a mortgage of 200,000.00 euros
Therefore the bank will provide a maximum loan of 200,000.00 euros
1> Upon signing the mortgage deed, no disbursement will be made. The first disbursement takes place when the borrower or on his behalf the director of the restoration works, through Ugo, asks the bank technician for an appraisal showing the value of the restoration works carried out (SAL = state of progress of the works) - in any case not before the mortgage on the property is consolidated, normally within 21 days of registration of the purchase deed.
2> The bank provides the borrower with 200,000.00 euros, during the restoration works in one or more SALs, on the basis of the assessments that will be carried out by the technician appointed from time to time by the bank following the request for disbursement made by the borrower.
3> To make the last disbursement, the borrower must send the certificate of habitability of the property to the bank. The last disbursement must take place no later than 24 months from the date on which the mortgage contract was signed.
VERY IMPORTANT > in any case in the time between the first and last disbursement of the mortgage, the borrower will pay the bank installments consisting only of the interest portion on the capital of the disbursed mortgage, the first complete installment of principal and interest will be requested AFTER it is the entire amount of the loan granted has been disbursed.
The previous example has ONLY and EXCLUSIVELY an explanatory nature, it has no value for contractual purposes - the real amount of the loan disbursed, the real amount of the mortgage installments that can be disbursed, the interest on the loan, are subject to final approval of the bank .
The fixed rate established in the contractual phase by the bank remains valid for the entire duration of the mortgage.
The variable rate can vary from month to month, based on what is established in the contractual phase, it is made up of two values:
1> the spread defined in the contractual phase which remains fixed for the entire duration of the mortgage
2> the Euribor indicated in the contractual phase which is subject to change - the bank will indicate in the contractual phase the Euribor chosen by it, it can be monthly, quarterly or half-yearly
Therefore the rate applied to the variable rate mortgage will result from the sum of Spead + Euribor.
Professione esercitata a norma della legge 14-01-2013-nr.4