Buying Property in Turkey FAQ's
Can all foreign nationals purchase property in Turkey?
Can I borrow money in the UK to purchase my Turkish property?
How negotiable are the advertised asking prices?
How can I pay the deposit to secure my property?
Can I open a Turkish bank account from the UK?
What documents do I need to open a Turkish bank account?
Are transactions completed in Sterling or Turkish Lira?
How long will it take to complete the purchase?
Do I have to return to Turkey for the completion?
How do I arrange power of attorney?
Is a UK power of attorney acceptable?
If later I sell my property can I take my funds out of Turkey?
Can all foreign nationals purchase property in Turkey?
Most foreign nationals can purchase property in Turkey. Agreements are usually reciprocal between governments. For a full list of nationalities which can purchase please click here!
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Can I borrow money in the UK to purchase my Turkish property?
From September 2006 it is now possible to mortgage in the UK against a Turkish property. Some restrictions apply as to the where in Turkey and what type of property. Rates are from approximately 6.9% in Sterling and 5.9% in Euros
Mortgages are available for Turkish residential property located on the Turkish Riveria and İstanbul only for the purposes of property purchase, refinance, and home improvements.
Main Points:
- The mortgage will be secured on your Turkish property
- Lending amounts from 40.000 to 200.000 Euros (larger amounts may be considered on a case by case basis)
- Up to 80% of the purchase price or property valuation whichever is the lower value
- Maximum term 20 years
- Maximum borrowing age 75
- Proof of income is required (see below)
- Repayments must not exceed more than 45% of nett monthly income together with any exisiting liabilities i.e. mortgage/rent repayments, personal or banks loans etc.
- For off plan purchases the funds will not be made available untill the property is registered in the buyers name.
- Mortgages are not available for the renovation of property which is currently uninhabitable
- If the property is rented the Interest Rate is increased by 0.6% throughout the mortgage term
Further İnformation
All applicants need to provide a minimum proof of income:
Employed applicants
- Copies of the your last three months pay slips
- Copy of your latest P60
- Employers reference
- Copies of your last three months personal bank statements
For Self Employed applicants or Directors of Limited Companies (wıth a share holding of 20% or more)
- Copies of the last 3 years Audited accounts
- Copies of your Personal Tax Returns fort he last 2 years
- Copies of your last 3 Personal Bank Statements
Other Points
The lender will request a copy of your credit file via Equifax or Experian
The Lender will not take into consideration the proposed Rental İncome from the property for Turkish mortage purposes or repayments
For more details or for an application form contact Black Lion.
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How negotiable are the advertised asking prices?
Advertised prices like in all property markets are open to offers being made and we can advise you on what is a sensible level of offer. Property however is not like items for sale at the local market where bargaining starts at 50% of the asking price.
Prices for the Lavanta development will not be discounted.
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How can I pay the deposit to secure my property?
There are several ways you can pay the deposit money:
- Cash or travellers cheques
- Cash withdrawl on a credit card over the counter in a bank
- Money transfer from your account in the UK to an account in Turkey
1. Is self explanatory but not always practical depending on the amount of cash you need to bring with you.
2. For this to work sucessfully the local banks must accept your card. As a general visa is fine but maestro is not accepted locally. You will need to tell you credit card company that you plan to make a large cash withdrawl otherwise they can stop the transaction for security checks.
3. Not all UK money institutions will accept a fax or phone authorisation for a foreign transfer. You must check with your bank or building society before you come to ensure this is possible and if so what documentation they require.
Many sellers will accept a goodwill deposit/reservation contract from you when you are here. This would be around 1% of the purchase price, with the understanding that the sales contract be completed and the balance of the 10% paid within a given timeframe after your return home. A good will deposit is generally non refundable.
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Can I open a Turkish bank account from the UK?
What documents do I need to open an account?
It is not possible to open an account at a Turkish bank from the UK. You must be present at the bank to open the account and require your passport plus one other form of identification to do so. You do not need to place funds in the account but most banks levy a small administration fee for setting up the account.
Accounts can be opened in many currencies e.g. sterling, euro, dollar and Lira. We would recommend you open both a Sterling and a Lira account. We also recommend you sign an authorisation form to send fax authorisations to the bank from the UK. You will find this useful for the future.
Currently Turkish Banks available in Kalkan are Denizbank and the Yapi Kredi Koç Bank. Garanti Bank will shortly be opening.
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Are transactions completed in Sterling or Turkish Lira?
Generally most property transactions in this region are completed in Sterling. If the property is advertised in Sterling then the contract and payment will also be in Sterling. Euro or Dollar are equally acceptable and the rate of the conversion will be agreed at the contract date.
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How long will it take to complete the purchase?
The main determining factor for completion is the arrival of the military permission for the purchaser. The application for the permission is made by the agent or lawyer through the local land registry office. Once the application is made all parties have to sit and await its return. Currently the time taken is around 10 to 16 weeks.
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Do I have to return to Turkey for the completion?
Unless you have arranged for your power of attorney to be given to the agent/lawyer then yes. The transfer of the title deed of the property is a process completed face to face either by the buyer and seller or their representatives.
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How do I arrange power of attorney?
Power of attorney is arranged through the Notars office. Our nearest Notar is in Kas. Generally you will need to visit this office along wth the person to whom you are giving the power of attorney. If you are arranging power of attorney to a local lawyer then they will be registered with the Notar and we can assist you with the power of attorney in their absence.
To complete a power of attorney you will need:
- 4 colour photos
- Your passport
- Your Turkish bank details if you are giving attorney for your bank account.
- Money for the notary
- Money for the translator
The Notars office is open Monday to Friday only so factor these days into your stay if you are planning to complete in this way.
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Is a UK power of attorney acceptable?
A UK power of attorney document can not be used. It is however possible for your Turkish Lawyer to send you the copy for an English language version of a Turkish Power of Attorney and for this to notarised and legalised in the UK before being translated into Turkish and notarised for use in Turkey. This method will cost you more but is usefull in certain circumstances e.g. opening a bank account remotely, arranging a remote completion.
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If later I sell my property can I take my funds out of Turkey?
Yes. There is no restriction on foreign currency i.e. Sterling, Euor or Dollar, movements into or out of the country.
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