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Greece has been in the European Union since 1983 and the previous restrictions imposed for security purposes on foreigners owning property was lifted in 1992, for EU member state and none Eu members.

Mortgage loans in Greece are available on an individual  or company purchase basis. If a property is to be rented out, you will require a Greek Rental Licence, known as a EOT Licence, which lasts for 5 years.

Lenders in Greece can lend up to 85% on the property purchase price on the property valuation, on the loan which can be for buying a property or renovations. Lenders can accept applications loans consolidation within a existing property. Subject to the discretion manger underwriter of the lender, usually based on the available income and lending rules. Purchasing any property obtaining a mortgage in Greece the lenders can charge fees payable in the application in stages of the process, which could include transfer fees, stamp duty, estate fees, property taxes, legal fees and valuation fees. Within the application all fees should be declared it is advisable to seek legal advice, especially before signing a contract or paying a deposit.

Lenders will also take into account 30% of the property rental income into account on mortgaging, a property in the assessment of a loan approval. The maximum loan available on a Greek property is 85%, although some lender will restrict the loan size to 70% of the valuation or purchase price, whatever is lowest. 80% funding is also available for the purchase of land. Mortgages are available for purchase on all types of property, small town house, apartment city, villa's new buildings and tourist developments.

An application can be accreted by the lender with some standard lending issues comprising of:-

Latest current own Property Mortgage statement. 

Certified copies of passports.

Proof of income employment references of accountancy self employment or business accounts.

The latest current 6 months personal bank statements.

Outstanding loans or mortgages and outstanding credit statements.

Business accounts and last 6 months business bank statements, including self employed persons.

Once you are ready to make a full application, it normally take 6 to 8 weeks to secure the mortgage on a Greek property. The lender may require additional information of guaranties on securities on other properties. All properties need to be insurance to as security for the lender that shall normally be a condition that your building insurance is taken with the mortgage lender. Mortgage offer shale be send out for final approval. As Greece has adopted the Euros so all transaction are in Euros, so if the country of origin in not adopting the euros currency exchanges are to be observed.

Mortgage costing in Greece vary on the property type under the purchase that shall be the responsibility to the buyer. As a general guideline and as lenders charge fees and government taxes are subject to change the percentages at present are the current law. Clients should always have the assistance of a lawyer to check the current regulation and notify the purchasers interests.

A Property valuation based on 240.000. euros.

Cients should make calculations on the valuation of the property purchasing price of up to 15% for the fees, purchase tax will be charged on the value of the property at between 9%-11%. Land registry current fee should be around 0.4% of the assessed value. A additional fee for stamp duty and relevant certificates. Normally real estate agents fees under the law can charge 2% form the purchaser and 2% form the seller vendor of the property. Property tax is at present around 0.25% of the property official declared value. Corresponding community tax of around 3% paid to the local municipality covering the local  public services. Under a property lending a mortgage on a commercial property for the tourist industry then a government tourist tax fee is payable. A EOT Licence must be obtained this license has proviso provision on any properties  used for tourist use whereto apartments or a Hotel that must comply. The legal help shall give the correct details for an EOT license. This licence costs around 5,000 euros and last for 5 years. EOT is the official standard of ensuring that the property isup to the Greek tourism standards.

Mortgage Process

Obtaining a mortgage in Greece raising of Greek finance, applications can be complicated and time consuming, therefore mortgage process should be instructed as early as possible to avoid such delays and make the buying process as smooth as possible this shall relate to the time of the property contract. completion dates. Where possible any accepted application can give the indication of the amount the clients can borrow. The lender any have a timescale for this lending of a mortgage. This proceed can be applied for even in your home country. In the event that a pre mortgage application is process. Having a mortgage offer in place substantially increases the opportunity to seek a property confidently with the necessary finance made.

A property can then be negotiated and agreed, the initial sale of contract is drafted, this contract can be a pre contract with a deposit of 10% and the main contract, which would include the price, completion date all relevant information on the property.  An application of transfer the land registry, the deposit  payment, legal documents, local tax numbers being registered. The property is independently valued by the mortgage lender the searchers are completed with the underwriter signing off mortgage releasing 6the funds to completed on the contract date.

Purchasing a property “Off Plan” which is common the mortgage raised only on the completion of the property, however these types of properties are still able to be funded with a  mortgage offer in writing. These are subject to the final survey has carried out by the lenders surveyors, payments can not be given in most cases until the property has been completed with the full inspection by the lender.

The up and coming self build programs in Greece offer the lender to lend money on properties once the land has been purchase with the land registered into the individual names of the owners.

Properties can be sold to more then one individual person. Clubshare scheme more then one person can be responsible for the properties mortgage liabilities.

Typically in Greece in the Banking sector many types of mortgages are ready available to suite an individuals financial needs. Listed below ore a few examples.

RE-PAYMENT MORTGAGES (CAPITAL & INTEREST)

2 YEAR INTEREST ONLY OPTION

UP TO 85% LOAN TO VALUE

NO MINIMUM TERM MAXIMUM

TERM 25 YEARS, WITH AN AGE LIMIT OF 70 YEARS

LOANS AVAILABLE IN EUROS, STIRLING AND US DOLLARS

In Greece once a pre-contract or contact is signed then any client is committed under the contract. If the client is not able to complete the whole contact, the deposit payment can be lost. Make sure all financial obligations can be met.

IMPORTANT: It is not recommended that a pre-contract is signed on a property or a deposit paid over to the seller prior to the banks own valuation of the property. In some cases a property maybe over valued to the current market value that the bank is taking the risk on, incase of a default on the loan. The bank shall give the amount that they are prepared to loan to a customer on the chosen  property based on the market value. If the valuation is below the asking property price, then the customer shall need to makeup this difference that the seller is asking, this can create negative equity on a property. If in the case that a deposit is paid over to a seller, prior to the banks valuation for the mortgage that does not meet the sellers price, and if the customer has signed the pre-contract with a deposit, without a clause to return any deposit monies, if the bank valuation is different to the asking price. Then the customer under the pre-contract or contact is not entitled to have the deposit money returned if the customer can not complete on the property, so pulling out of the contract. Customers can always get a second valuation with another bank with a mortgage application. Always request confirmation from a lawyer acting on your behalf.

   Greece@greekpropertysociety.com