Italian Mortgage Service
IMS is a branch of Lifeinitaly.it
To Non-Italians
for buy , restore , refinance
residential properties , in Italy
Buy & Restore Mortgage in Italy Explain
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Other Mortgages Procedures
>> Restore only mortgage in Italy procedure explain <<
>> Refinance italian mortgage ( The Surroga) procedure explain <<
>> Buy Mortgage in Italy procedure explain <<
this page to explain on two examples ,
the Buy & Restore property in Italy mortgage
procedure and payments .
MORTGAGE AMOUNT ALLOWED
MINIMUM 150.000 EURO
- Buy and restore property in Italy , can be provided on : property not in living state of use , Ruine to Restore , 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 150.000 euro in case of buy and rebuilding ruines or in case of restore living homes
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 - With a restoration licence issued , for immediate restoration works , on more payments .
6 - The bank start the mortgage payments if is in according to the builded structure value , according bank surveyor expertise
According the italian banks standards requirements , the foreign borrower can receive a mortgage till max 50% on the property commercial value , calculated once the restoration works have finished . This calculation has to confirmed by the bank surveyor .
EXAMPLE 1
Basis Points - 50% LTV mortgage
A) the borrower buy a property to 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 deed of purchase/ mortgage the bank will pay to the borrower , a sum of 60.000,00 euro ( equal to 50% of the property commercial value , at purchase time)
(1) according italian mortgage law , the payment will be made afther the mortgage on the property is estabilished , usually within 21 days of 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 restoration works , in more SAL ( state of woks advancing ), based on expertises maked by bank surveyor , 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 buy a property whose the commercial value is 120.000,00 euro
B) the commercial value of the property , once the restoration 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 deed of purchase/ mortgage 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 , maximum 21 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 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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Profession exercised in accordance with the law 14-01-2013-nr.4