Raising Finance in Cape Verde

Loan to Values

You can achieve 75% of valuation in Cape Verde for property and it may also be possible to secure a mortgage for land although loan to values and terms may fluctuate. The loan will be a percentage of purchase price or valuation whichever is the lower.

By Tri party agreement with a developer or by use of an insurance policy paid for by you it may also be possible to raise some funds to support staged payments before completion

Cape Verde Mortgage Product Ranges

You can obtain mortgages for purchase of existing property, re-mortgage of existing property and land.

Interest only for 5 years and capital and interest is available.

Interest is linked to the Euribor and loans are provided in Euros. Interest rates are still quite high in Cape Verde with the margins above Euribor ranging from 3 to 4.5% above the prevailing rate.

The mortgage can be in personal names and may also be available in company names with a guarantee from the beneficial owners.

Approval in principles may take a while to obtain as non resident mortgages are in their infancy in Cape Verde and the lifestyle there is very laid back. You may be requested to supply extra documents and to provide translated documents in certain circumstances.

Term

Terms are up to 35 years and most banks will look to see the mortgage redeemed in full by the time you have reached age 75.

Costs

Total finance and purchase costs will equate to approximately 6% to 7%% of the purchase price.

Your costs will be made up of

Personal legal costs 1%

Mortgage registry costs 3% of lending

Notary and land registry 3% of purchase price

Mortgage arrangement and application fees 1.5%

Valuation fees 0.50%

Currency

Loans are granted in Euros and its repayments must be paid in Euros.

Underwriting Criteria

The banks in general work on net income and an affordability ratio. The bank will expect to see that combined debt payments including the new loan to be taken out do not exceed around 35%/40% of your after tax incomes. All products are full status there are no self cert products available currently.