BUYING DETAILS
Title Deeds
The solicitor acting on your behalf will check the Title Deeds and confirm the ownership of the land where the development is to be built is owned solely by the Developer with no mortgage on the land etc, this will provide piece of mind to both investors and those purchasing a holiday home.
We can recommend an English speaking solicitor to act on your behalf if you so wish.
We hereby confirm full sole ownership of the land is by the Developer and there is no outstanding monies/payments/mortgage on the land.
Planning permission/Building warrant
The solicitor acting on your behalf will confirm that Planning Permission and Building Warrant is approved for the development. This will provide piece of mind to all purchasers.
We can recommend an English speaking solicitor to act on your behalf if you so wish.
We hereby confirm that Planning Permission and Building Warrant have both been approved by the relevant authorities for this development.
Security bond
The Developer will provide a security bond on his assets to all purchasers to give the purchaser piece of mind that the money they put down on the property’s at reservation/contract stage is safe and guaranteed.
This Security Bond will be issued by the Developers Solicitor and forwarded to the purchaser, shortly after the Developer receiving cleared funds from the purchaser amounting to 30% of purchase price. All as per the agreed payment terms.
Ongoing Maintenance
There will be a maintenance contract automatically put in place to cover the following:
24 Hour Security personnel on site full time
Continuous cleaning of swimming pool & surrounding areas
Continuous maintenance of garden/grassed areas
Continuous cleaning of communal areas
The Purchaser will be required to pay annual fees for maintenance.
Value Added Tax (Vat)
We hereby confirm VAT is included within the purchase price paid by the Purchaser.
Capital Gains Tax
Under the new personal Income Tax Act, which came into force in Bulgaria on 1st January 2007, CGT has been reduced from 15 per cent to 10 per cent for a non-tax resident of Bulgaria under certain conditions. In principle, for foreigners (who do not reside in Bulgaria more than 183 days in any one year), it’s ten per cent of the profit – the balance between the declared purchase price and the declared sales price, minus expenses recognised by the law that reduce the taxable profit.
Please note there will be no CGT if the following conditions apply:
- During the calendar year the person has sold only one property in Bulgaria (i.e, for more than one property there will be CGT).
- During the calendar year the person has sold up to two properties but more than five years have passed since they acquired the estates in question.
- For tax purposes the person in considered resident of a member state of the EU or the European Economic Area (ie, the tax relief is only for European Citizens).
Do I Need To Form A Bulgarian Company?
No, there is no need for any purchaser to open a Bulgarian Company. British Citizens can purchase properties similar to process in UK, all as explained in Buying Procedure section below.
Do I Need To Open A Bulgarian Bank Account
No, there is no need for any purchaser to open a Bulgarian Bank Account. All funds from rental etc can be paid direct into your UK bank Account.
Buying A Property In Bulgaria
Buying a property in Bulgaria is different to purchasing a property in the UK but still can be safe, secure and pain free.
Luxuryloghouses.biz endeavour to ensure that the purchasing process is simple, fully explained and as cost efficient as possible.
There is no need to set up a company if you are purchasing a property. The Villa is freehold and there is no lease, the property is yours forever, or until you sell.
The Buying Procedure.
- Buying an “off plan” property in Bulgaria is essentially the same as buying in the UK. There is an initial contract signed by all parties, which is basically an obligation to build on behalf of the developer and an obligation to buy on behalf of the client.
- The difference comes when the property is completed. In Bulgaria, there is a third party who basically acts on behalf of the Government. This person is called the “Notary”. It is the Notary’s responsibility to ensure that the correct details are entered on to property deeds.
- In essence, the client or the client’s representative with Power of Attorney (generally the purchaser’s solicitor) and a representative of the developer will sit down with the Notary, who will issue the deeds once they are sure everything is correct. The Notary is often considered by client’s as a Government official, ensuring that everything has been done as it should have been.
The basic process is listed below:
- The Interested Party should call Phil Cowper of Luxury Log Houses on 01472 500881 for answers to any questions and/or to arrange a meeting to discuss the development in more detail with a view to reserving a property.
- The client completes a Reservation Form and pays a Reservation Fee of £5,999 Pound Sterling by Cheque. A receipt of payment will be issued once payment is received.
- The Client will receive a Contract for the purchase of their reserved property (4 weeks from Reservation). The client will require to sign the contract and return it with 30% of the purchase price (Less Reservation Fee of £5,999 Pound Sterling already paid) as per the agreed payment terms.
The contract to be signed will cover.
- The subject matter
- The property and obligation for purchase
- The price and methods of payment
- Terms to assign the property
- The type of property and terms to perform construction and installation works
- Obligations of all parties
- Responsibility for failure of performance and delay
- Other general provisions
Structural Warranty
The properties will be given a 10 year structural warranty from the date the property is handed over to the client.
Snagging/Defects
A qualified surveyor will carry out an inspection of each property and ensure all snagging/defects are made good prior to the purchaser’s date of entry.
Regular Construction Updates
Each Purchaser will receive a monthly email with construction photographs of the development so that each and every Purchaser can follow the progress of the site. Alternatively a Purchaser log onto our website (www.luxuryloghouses.biz) to view all construction update photographs.
This gives our client’s piece of mind that the build is progressing and gives our Purchasers an easy indication of what stage the builder is at.
We believe it is far better for our clients to see the stage of the build as opposed to hearing what stage of build the Developer is at.
Buildings insurance
The Building Insurance will be included within the maintenance agreement and will be paid by the tour operator as part of the guaranteed rental agreement.
Please note a client will be required to pay their own buildings insurance.
Contents Insurance
Please note a client will be required to pay their own contents insurance.
Selling Costs
A client should allow 5% of the sale price of their property for selling costs, should they decide to sell the Bungalow at a later date. Please note 5% of the sales price will cover all legal costs, estate agents fees, local taxes etc.