Do you also have a favorite place to travel to each year? Then you’ve probably already thought of buying a holiday home or apartment there. Whether you want to buy a property as a holiday home, for retirement or as a second home – the mortgage lending of holiday homes abroad is interesting for buyers for many reasons.
Due to the ongoing euro crisis, especially in the south of Europe, many properties are currently being offered relatively cheaply for purchase.
Even if it seems tempting to own a property abroad at a first glance, you should nevertheless take a detailed look at the risks of financing holiday homes abroad in advance.
Before you go looking for the right property, you should look at your financial resources. If you can not pay the property completely from existing reserves, you need the appropriate mortgage lending. So that you can really calculate the budget for real estate financing correctly, you can consult our free budget calculator.
If you already own a paid-up property in Germany, you can finance the holiday home abroad via a mortgage loan within Germany. In this case, the already paid off property serves as a hedge for the loan . If you do not have your own house in Germany, you should alternatively contact the foreign credit institutions in the destination country because not every German bank lends a loan for a property abroad.
To avoid communication problems when talking to the bank or buying the property abroad, you should consult an independent interpreter. The legal situation differs considerably from that in Germany in some countries.
Mortgage lending – obtain and check required documents
The search for a suitable property is complete and you have found the house of your dreams. However, before making a hasty purchase decision, it is important to request and verify the required documentation with the seller.
Land register extract or register extract:
Apply for a land register excerpt from the competent land registry office. With the registration number of the property, it is relatively straightforward to obtain the land register excerpt. If you do not have the registration number, the first and last name of the current owner may be helpful. The land register extract contains information such as the size of the plot, the built-up area, the registered owner and any encumbrances on the property.
In any case, before you buy, have the building permit from the seller presented to you. So you do not fall for unauthorized buildings.
Be careful here! Depending on the country, a self-written purchase contract may be legally valid. Nevertheless, you should consult a notary, as only with conclusion of the notary contract an entry in the land register is possible.
The entry in the land register should be made immediately after the purchase. Only then can you be sure that the property will not be offered for sale again.
In any case, the purchase of a property is a responsible decision and should be well considered in any case. Especially when buying real estate abroad , you as a buyer must be particularly mindful and should be advised in detail. Have all contracts written bilingually and checked by an expert.
So that in the end no unpleasant surprises await you, we recommend to visit as many cottages as possible. This is the only way to get a feel for the real estate and compare offers better.