Bulgarian mortgage scheme launched by Conti Financial Services

The emerging 'Eastern Eight' countries, which include Bulgaria, have gained a reputation for having legal systems that can make it difficult for purchasers to establish legal title over their chosen properties. Conti has launched this new scheme after many months of negotiation and due diligence, according to Conti's senior partner, Simon Conn, to ensure that the lenders working with them in Bulgaria can confidently get a charge against properties in the area to give UK and non-UK buyers the peace of mind and security they require.

`We have been working closely with lenders and experts in Bulgaria over the last six months to ensure we can confidently offer the type of high quality service and mortgage scheme we are able to offer across the rest of Europe and world-wide,` says Mr Conn.

The new scheme that is available in Euros only, has a minimum loan amount of €40,000. The maximum term of the loan will be 15 years - available up to age 70. As of 31 August 2004 the rate is approximately 7.50%.

Due to integrate fully into the European Union in 2007, Bulgaria has long been popular with Brits, and its stunning Black Sea coastline makes it one of the most popular destinations in Europe. This popularity is also making it a key hot spot for investment minded property buyers who want to capitalise on its potential and the current low prices for villas and apartments in the region. Simon Conn, however, sounds a note of caution for

buyers considering a purchase here.

`As in other European countries it is not possible to get a mortgage on an apartment that has not been built. However to ensure that your investment is safeguarded, it is possible to achieve a mortgage on completion when the title is legally registered in your name.'

Non-Bulgarians are not permitted to own land in their own name, so those buyers considering purchasing the land to build a villa, for example, must do this through a Bulgarian company with the purchaser as legal owner of that company. It is then possible to achieve stage payments for building works. Establishing these links can be difficult, however Conti has developed a network of legal and financial specialists in the country who can assist purchasers throughout the process, as Simon Conn explains:

'As a fully independent overseas mortgage specialists, without ties to property agents or similar, we can confidently offer the assistance of specialists in Bulgaria who can advise and assist our clients and have taken time to choose the right working partners in the country.'

With an increasing number of British companies opening offices in the country, and still more Bulgarians ex-pats who would like to buy a little of their homeland, the property market here is looking buoyant. However, as in any property purchase, it is essential for buyers to do their homework before they buy to avoid any possible pitfalls that might await them buying in this beautiful, but very new European country.