Guide to Purchasing Property in Cape Verde
Those who want to buy vacation homes overseas to use for their own personal leisure time pleasure, or to entertain their relatives in, or to lease to other tourists as a way to earn some extra income are increasingly turning to the beautiful Cape Verde Islands nowadays. These investments will only increase in value over the long term as more people start to recognize the benefits of a Caribbean-style holiday in a safer, less developed, and in a more convenient location.
During the early days of tourist development, foreign buyers encountered a few problems in dealing with a developing market in a country with a less experienced international financial background. It is true to say, though, that the financial market has caught up with the rest of the financial world and obtaining Cape Verde mortgages in the islands has become a much more straightforward process. Though, it is important to remember that the lifestyle in Cape Verde is laid back. Another way of putting it is that things do not always happen as fast as you would like.
What you will run across are mortgage companies that will offer terms for 15 to 35 years. This particular idea offers redemption of your mortgage at 60, as opposed to 75 with the majority of programs. While numerous businesses offer loans of up to 70% of the acquisition price or the appraisal take the lowest figure. There are a few companies who are willing to extend up to 85%.
Your current income must be shown before getting a non-resident’s mortgage, which will include bank statements for the last 6 months, copies of pay check stubs, and 2-3 years of P60 forms. People who are self-employed will have to show 3 years worth of their copies of personal and business tax returns and bank statements. You will, also, need to provide documentation verifying your current address, as well as, a certified copy of your passport. A good bi-lingual lawyer can help with creating translated copies of some or all of your documents in case you are asked for them.
When buying a property through a mortgage, you will likely find that your end financing and purchasing costs total 7% of the property price. Home loan is given for purchase of ready house or landed property to construct home, which involves certain percentage of the total cost of the project as fee to get the property mortgaged in favour of the loaner. This percentage comprises of personal legal costs of 1%, mortgage registry cost of 3% of the loan, Notary and land registry cost of 3% of the purchase price and other mortgage and valuation fees of around 2%.
