international mortgages

poland

Essential information for buying properties in Poland

Buying property abroad is not necessarily the same as buying in the UK, there is other essential information you need to be aware of both before and during your property purchase.

It is advisable to organise your mortgage finance before agreeing to purchase a property.

It is of paramount importance to seek independent advice from an overseas solicitor.

A Polish bank account will be required with the lender.

You need to ensure that you will have full title to the property on completion and that you have the appropriate documents available for the lender, which will include a copy of the power of attorney if applicable.

Non-Polish Nationals must obtain the permission of the Ministry of Home Affairs of the Republic of Poland in order to buy a property. This is a relatively simple process but needs to be carried out by a specialist solicitor. This approval is usually valid for 6 months. If this permission is not obtained in advance of the purchase the transaction will be void and all deposits will be lost.

There are a number of areas where the buying of property by Foreign Nationals is prohibited. It is important that your independent legal representative carries out checks to make sure the property you are buying is not in one of the restricted zones.

Legal fees and transfer taxes will amount to around 8% of the purchase price however you should check with the estate agent and your lawyer so that you are aware of all the costs charged by legal and Government authorities. The lender will also charge legal fees for assigning the loan. The cost of this is normally confirmed when they issue the mortgage offer.

The completion of a Polish mortgage takes place in front of an appointed Notary and all parties to the mortgage, the vendor, lawyers and a representative of the lender need to be present. However, it may be possible for a Power of Attorney to sign on your behalf for the mortgage and title deeds.

The Notary will log the change of title at the property registry; however this registration can take up to 3 months.

Eligibility and criteria

Available for purchases.
Loans are available in Polish Zlotych, Euro, GBP, USD & CHF
Available only on a Capital & Interest repayment basis
The maximum loan to value is 100% for Ploish Zlotych and 7s% for all other currencies
The maximum term is 40 years – available to age 65
The minimum term is 10 years
The minimum age is 18 years
The minimum loan size is £100,000
All income must be derived in UK

Affordability

To qualify for a mortgage in Poland, a calculation is used to establish whether you can afford to maintain the mortgage repayments.

Your existing liabilities, including your UK mortgage or rental payments, loans, credit card payments and maintenance are taken into account, together with the proposed Polish mortgage payments. All this must not typically exceed 40% of your monthly net income. For example if your net joint income is £2,500, 40% of this equates to £1000. If your only liability is your current UK mortgage payment of say £500 per month, this would leave a balance of £500 for your Polish mortgage repayment.

The amount that you can borrow is also restricted by the maximum loan to value as mentioned under Eligibility and criteria.

Proof of income requirements

If you are employed:

Your last three month’s payslips
Your latest P60 and/or employers reference
Your last three month’s personal bank statements

If you are self-employed:

Your last two year’s audited accounts or Accountants reference & Tax returns
Your last 3 month’s personal bank statements

Other documents will be required and will be confirmed when application forms are sent to you.

If you would like to speak with a representative to discuss your requirements please call +(34) 677 874 948

****contact us****