Non-Resident Mortgages Arrive in Cape Verde

In emerging markets the property developers are much faster out of the starting blocks building their resorts than the banks are creating their non-resident mortgage products.  In many cases individuals have to fund their purchases through equity release on their UK property or in cash, thankfully they have low entry level prices on their side.  Cape Verde was one such market bereft of local financing options, but this has now changed. 

GEM Estates in partnership with International Mortgage Solutions (IMS) is now able to offer clients two new mortgage products provided by a major Portuguese bank in conjunction with a Cape Verdean bank in which they own a share.  The products are flexible, cost-effective and provide clients with euro mortgages for Cape Verdean purchases.

The first is a straightforward repayment mortgage for final payment and transfer of ownership at completion.  Up to 85% of valuation or purchase price is available, whichever is the lower, and there is also a five year interest-only option.  The term is 35 years and the maximum age a very reasonable 75 for repayment in full.  Rates are currently the best available in Cape Verde at 3.3% above annual Euribor, most banks are quoting 4% above. 

With such a high loan to value (LTV) in conjunction with a rapidly accelerating property market, clients will undoubtedly be able to take cash back already invested in the property during the build period over and above their 15% deposit and costs of completion. 

The second is a stage payment ‘bridge’ loan for support during construction.  Purchasers can apply to fund 20% of the stage payment profile and absolutely no capital or interest repayments are required for the term of the loan, they are rolled up until the property is complete.  As this loan is pre- private purchase contract, it is secured either through a tri-party agreement with the developer such that they guarantee to put the property in the bank’s name if the client fails to complete, or, the client purchases an insurance policy to cover the loan.  This product has the added advantage of pre-qualifying clients and therefore giving pre-approval for a mortgage at completion, subject to updated underwriting necessary at that stage.  Clients can therefore rest easy in the knowledge that they fit the banks’ requirements for completion financing.

GEM Estates has an inspection trip offer for the month of November only for clients to view the beachfront resort of Dunas Beach on the island of Sal.  Lasting three nights (four days) the inspection trip encompasses flights, transfers, hotel accommodation, meals and is fully hosted by resort experts.  The cost is just £299 per head, considerably cheaper than the actual value thanks to a GEM Estates subsidy.  Guests will also have the opportunity to view neighbouring Tortuga Beach Resort & Spa and should a purchase be made, your costs will be refunded as a goodwill gesture.

Dunas Beach Resort occupies a stunning beachside location at Ponta Preta and has a low build density of just 20%.  Comprising one, two and three bedroom apartments as well as three and five bedroom detached villas with private pools, Dunas Beach Resort also boasts a luxury four-star hotel, aparthotel facilities for all villas and apartments including a rental option, restaurants, wine and piano bar, Spa, state of the art gymnasium and tennis courts.  18 holes of golf are destined for the plot adjacent to the resort and of course the 10km if sandy beach has all the watersports you could wish for. 

Prices start from 97,950 euros for a one bedroom apartment and three bedroom villas with private pools start from just 299,950 euros.  

For further information on Cape Verde mortgages please contact us on info@gem-estates.com and we will put you in touch with our financial experts at IMS.  To book an inspection trip to Dunas Beach Resort contact us in the same manner info@gem-estates.com or UK freephone 0800 731 8494.

Author: 
Date: 01/11/2007