Thinking of buying in cape verde?
Hazel Woodcock, Mortgage Director, Cape Verde Mortgage Company, tells TheMoveChannel.com about life in Cape Verde and offers some useful mortgage and financial advice to prospective purchasers...
Cape Verde Islands
I am very fortunate as I live in Sal, one of the Cape Verde Islands. Currently Sal is the main tourist island, with Boa Vista and São Vincent becoming more and more popular.
Every morning I open my shutters and gaze across a golden beach to the turquoise sea and hear the waves gently lapping. Kite and wind surfers sail past from sunrise to sunset. The pace of life is slow and peaceful and the island is very cosmopolitan with Europeans, Africans and Cape Verdians all living and working together.
Deciding to own a place in the sun in Cape Verde may be one of the biggest decisions you might ever make so it is essential to obtain as much advice as possible before making a commitment. Experts should be contacted to make the correct property selection together with legal and financial advice.
My expertise is mortgages and financial advice and I have been doing this on Sal since 2006. I also have international financial experience gained in Spain and France and am a UK qualified financial adviser. Non-resident mortgages are new to these islands and as a result the products available are very basic.
In the UK we are used to self certified, buy to let and interest only deals - here only repayment mortgages are offered by Cape Verdian and Portuguese banks.
Unfortunately none of the big international names we know in the UK, such as HSBC and Barclays, are operating in these islands.
Available products
50 per cent of the lower of the bank's valuation or purchase price
Interest rates from 4-7.5 per cent depending upon development, bank's criteria and borrowers financial circumstances
5-25 year terms, up to age 65
All income declared must be supported with tax returns, P60s, payslips and bank statements
UK mortgages and loans are used to calculate affordability
If borrowing €100000, the repayments will be between €640-817 per month
No interest only is currently available
Mortgages available for purchase, release of equity and construction
Next steps
In order to give you the confidence to buy you can find out your borrowing capacity before committing to a purchase. CVMC can analyse your details and confirm whether you match any of the bank's criteria and if needed apply for an approval in principle. This will give you a realistic budget to work with and will ensure you view properties which are affordable.
Once you have a chosen property then a full application can be made - at this stage documentation is needed from the client, their lawyer and the developer and it is the role of a Mortgage Broker to co-ordinate everyone involved in the process and ensure that the most suitable bank is used to match the needs of the client.
Buying in a foreign country can be confusing and complicated due to the various terms and conditions of the banks, plus the language and distance barriers. Using a Broker can help save you time and money by obtaining the right mortgage to match your needs and requirements.
A professional Mortgage Broker should have access to the various products that are available and be aware of any changes to the banks criteria. CVMC has the expertise to save you time and effort as it has already researched the market to see what products are available. Relationships with all of the banks have been consolidated during this time. CVMC has knowledge and experience second to none.
General advice
If your lawyer has power of attorney to sign for the property on your behalf it is easier to also give them power of attorney to sign for a mortgage at the same time. It is very complicated to arrange this from the UK
Make a will - it is advisable to arrange for your lawyer to draw up a will which will cover all of your assets in Cape Verde. Main reason for this is it saves having to get all of the UK probate documentation translated, allowing the Beneficiary immediate control of the assets.
Ensure you have the necessary insurances in place to protect your property
If you rent out the property you will have to lodge a tax return in Cape Verde
Cape Verde Mortgage Company is the only mortgage broker based in Cape Verde and are not tied to any bank so can offer independent advice. Services include mortgages from local banks, access to English speaking, UK qualified advisers, opening bank accounts here, tax advice - income, capital gains & inheritance taxes, insurances - building, contents & third party liability, foreign exchange and update service informing you of any changes which occur that can affect your ownership of a property here in Cape Verde.
Contact:
www.capeverdemortgagecompany.co.uk
Picture by mterraza