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Mortgages & Advice

Advice on mortgages and property hunting at your fingertips

Buying Overseas. Germany

  • Search our German property listings.
  • If you wish to travel to view the property, we recommend you contact Bluca Properties Limited. They can put you in touch with a travel agent who can assist you with flights and accommodation. If you would rather organise your own flights then they can assist you in locating accommodation. Bluca Properties do not organise viewing trips however, should you travel and decide to purchase they will refund you €300 towards the cost of your travel. Should you not wish to travel to view the property then will will advise as to the deposit required to secure the property for you.
  • At this point you will contact either your own lawyer or the lawyer as supplied by Bluca Properties. They will then review the contract for you to ensure that all is in order. This also includes checking legal title amongst other things. The terms of the contract can be very variable. That is why a contract needs to be checked by someone experienced in German conveyancing. There are many legal obligations but also legal finesses which can be to the advantage or disadvantage of the person buying.
  • Among the most important things the contract must show are: (1) Whether the names and addresses of the parties and the details of the property are correctly noted. This is crucial as an error, especially in the property details, could at least partially invalidate the contract. (2) The agreed upon purchase price and terms and conditions of payment. (3) Stipulations as to what happens in the event either party fails to live up to the terms of the contract.
  • Very often the purchase price is first paid into an account maintained by the notary (Notaranderkonto) and transferred to the seller only with the land register entry is complete.
  • The notary is not responsible the correctness of the owner's property description. That is the buyer's job. The seller isn't obliged to point out any major defects that should have been obvious to the buyer, though he should be required to describe any hidden defects. For this reason it is strongly recommended that you have the property surveyed prior to purchase. Note: at this date the agents commission will fall due.
  • The register spells out the rights of any third parties; those, for example, of tenants. Such tenants can't bar the sale of the property, but the new owner is bound by any lease arrangements to which the previous owner agreed. Hence, the new owner can't evict a tenant before the lease expires.
  • From the terms of the contract it will be clear when the final payment due on the property must be paid. Once this is done all that is left to do is pick up the keys and enjoy!

Costs Associated with purchasing a property in Leipzig

Bluca Properties Limited recommend that you allow approximately 12-13% of the purchase price to cover all your closing costs. These can be broken down as follows:

  • Agents commission which is 5.8% including VAT
  • Lawyers fees which are 1.5%
  • Purchase Tax 3.5%
  • Notary Fees 1.5%
  • Miscellaneous fees (i.e. translations etc) approx 0.5%

Financing your German Property

Couple being introduced to their new German property by their agent

There are a number of options open to people wishing to purchase a property in Germany. Firstly they can finance the property from their country of origin through either release equity or loan. As the property is located outside the jurisdiction, national banks will not offer mortgages on overseas properties. Therefore, any loan applied for may need to be secured by alternative means.

Secondly, non-nationals may obtain finance in Germany. The LTV tends to be approximately 60% so again you would need to finance anywhere up to 40% of the purchase price of the property.

Finally, it may be possible for the existing mortgage on the property you are purchasing be transferred to you. Again, this would be subject to the usual lending criteria.