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ARRANGING MORTGAGE FINANCE

You are advised to contact a mortgage broker before you exchange contracts so that completion can take place promptly. As there is more time before completion with off-plan properties you can apply for your mortgage after agreeing an offer to purchase, although this is typically done up to six months prior to completion.

If you do not already have a mortgage broker then IP Global recommend contacting Liquid Expat, who specialise in servicing the financing needs of overseas property investors.

When you contact your mortgage broker, they will request certain documents from you, including but not limited to the following:

Proof of ID Proof of income Historical income tax returns (not applicable in the UAE) Property details for example the size, location and time to completion Estimation of loan value Proof of deposit

Using these details the broker will be able to determine the best mortgage for an investor s needs.

Once the application is completed the details are passed onto an underwriter who will assess the risk to the bank. A surveyor will also be instructed to determine the value of the property.

CONTACT MORTGAGE BROKER

AND ATTORNEY

PAY CLOSING FUNDS

SUBMIT DOCUMENTATION

UNDERWRITER ASSESSES RISK

PROPERTY APPRAISAL

MORTGAGE COMMITMENT

ISSUED

If the application is approved then a Mortgage Offer is issued. The Mortgage Offer is the set of terms that the bank will lend at. It outlines the mortgage term, maximum loan available to an investor, the interest rate and any variations thereof.

The bank instructs its solicitors to begin the conveyancing process, following which the property owner s solicitor issues the mortgage deed and legal charge, along with the lease for leasehold-title properties. They then conduct lease-restriction and bankruptcy searches and ensures ground rent and service charges are correct. If everything is in order they request the funds from the bank.

The investor will then pay the remaining completion funds as well as the stamp duty, with the solicitor taking responsibility for distributing the funds among the various closing parties. Post-completion, the solicitor will register the property with the Land Registry. On the day of completion the investor will receive the keys.