Bulgaria’s system of property purchase, though relatively straightforward, is different from the UK’s. It is essential to use the services of an independent English-speaking solicitor.
Mark Parvez of Key4Bulgaria.com said: 'It is quite common for both buyer and seller to pay the estate agent for their work in bringing them together. Fees may be as much as 6% of the purchase price, split 3% each between the two parties. Often, this practice will only be enforced when buying an older property and not a new build, when, in all likelihood, you will be negotiating with, and buying from, a UK agent and/or developer.
'Having chosen the property you want to purchase, the buyer’s solicitor will draw up a preliminary contract of sale, at which stage the buyer will be expected to lodge a 10% deposit. The solicitor will then check the property’s title, and, assuming everything is in order, the purchase price balance, land tax and notary fees, in total amounting to approximately 5% of the purchase price, will fall due for payment. The title deed will then be processed, and in due course the new owner will receive his papers of legal ownership.
'Several fees and taxes are payable when buying property. Budget for 4–5%of the purchase price. Costs may include: Transfer fees: 2–2.5%; notary fees: 0.5–1%; legal fees: 1–1.5%, surveyor’s fee (optional), mortgage fees (if applicable), foreign exchange costs (if applicable), estate agent’s fees (if applicable).
'Although mortgages have been available in Bulgaria for a couple of years now, the industry really is still in its infancy. Generally, the maximum loan will be 70 per cent of the property’s value, leaving the buyer to find a 30 per cent deposit, and the interest rate will be in the region of 6–7 per cent, plus an administration fee of 1–1.5 per cent. Some lenders are now offering 80 per cent LTV financing.' said Parvez.
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Amanda Lamb is on her travels finding you the ideal location for your new house
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