Turkish Mortgage
Mortgage Process

- The bank will send an appraiser to your chosen property for a full evaluation.
- Within 5 working days, the bank will inform you of their mortgage offer.
- The bank will then write to you, enclosing their ‘Pre-Term’ mortgage offer.
- If you agree to the terms & conditions in the Pre-Term offer, you are required to sign, date      & return it to the bank, together with your commitment fee.

- You will then have up to four months to arrange the following, which we will help you with:
        - DASK (earthquake) insurance on the property
        - Buildings Insurance
        - Iskan Ruhsati (House permission)
        - Military Check/Clearance on the property
        - Tax number (obtained from Kas)
        - Opening a bank account
- After presenting the above documents to the bank, they will approve your application, pay out the loan & put the mortgage on the title deeds.

Off-Plan Mortgages
Dependent upon the nature of the project, you may be able to borrow before completion or at least have a firm commitment from the bank confirming that they will pay out but this should always be discuss thoroughly before purchasing your off-plan project.

Loan Features
- Loan to value : Maximum 70% of the appraisal valuation (not always the sales price)
- Debt to income : Maximum net salary to total loans
- Value of income : Only the salary income transferred to a bank account, average profit over the last 2 years, pension income
- Maximum amount : No maximum
- Minimum amount : 30,000 euros
- Nationalities : All countries that have a reciprocal agreement with Turkey
- Maturity : 5, 10, 15 and 20 years
- Loan in YTL : Yes
- Loan in Euro : Yes
- Loan in Dollars : Yes
- Loan in Pound Sterling : Yes
- Interest Types : Fixed
- Early repayment : Possible (2% penalty fee)
- Property valuation : Required
- Age of application : 25 – 70 years
- Max age at end of maturity : 70 years
- DASK & Building Insurance : To be arranged by bank
- Life Insurance : Not required
- Off plan mortgage : Yes, with full bank guarantee from constructor for the total loan amount
- Monthly loan payments : Direct debit from Turkish bank account
- Pre-offer valid for : 4 months
- Extension of pre-offer : Until 18 months (1% extra commission required)

As a foreigner, can I buy property or land in Turkey?

There are 67 countries that can buy property or land in Turkey which includes the UK and most of Europe.

How long does it take to buy a property?

Approximately 8-12 weeks to completion.

Do I need a deposit?

Yes. A 10% deposit will secure most properties with the balance upon completion. If you are buying off plan, payments are normally staged, but this would be negotiated at the time of purchase.

You can transfer the money directly to an account in Turkey which can take several days, although transferring money through Western Union www.westernunion.com can be quicker.

How can I borrow money to buy my property?

Some people choose to release equity from their UK home, but Turkish mortgages are now becoming increasing popular. Our Turkish Mortgage section will answer any questions you may have regarding the process for applying for a Turkish mortgage.

Do I have to convert the selling price to Turkish Lira (TL)?

No. Whatever currency the property/land is being sold in, is the currency to pay in. Normally, properties/land are sold in Sterling or Euros.

When do I get my Tapu (Title Deeds)?

Following the completed sale procedure, which includes the sale agreement, all background searches done on the property/land, and the statutory military check, this is a search to confirm the property is not within a military zone or national forestry land (your agent will conduct this process via the land registry office on your behalf). Upon approval you will then receive your Tapu. The whole process will take approximately 8-12 weeks.

You will need to be present in Turkey to conduct part of the above procedures, unless you instruct a Power of Attorney to act on your behalf. We are happy to hold Power of Attorney for you.

What is Power of Attorney?

Power of Attorney is you giving another person the legal authority to act on your behalf throughout the buying/selling process. It is arranged through the Notars office, where you will go along with the person you are giving the Power of Attorney to. You must also have an official translator which the Notars office will arrange for you. You cannot ask a friend or the person who will hold your Power of Attorney to act as the translator. The only documents required for this is your passport and photographs.

What documents do I need to purchase property?

Your passport, also an official translation is needed of this and passport sized photographs, plus a tax number provided by the tax office in Kas.

Why do I need a Tax number?

You must have one by law. If you already have a Turkish bank account, then you will already have a tax number. If you don’t have a tax number, you can go to the tax office in Kas and they will register you for one.

If I decide to sell my property, can I take the money out of Turkey?

Yes. There are no restrictions, and you do not have to have owned the property/land for a certain period of time. However, there will be capital gains tax to pay if the property has been owned by your for less than four years if purchased prior to 1st January 2007 (five years after this date). www.gib.gov.tr

What expenses will I incur?

Agents Fees - Our fees are kept in line with competitor real estate agents of Turkey which is currently 3% of the purchase price of the land / property.

Land Registry Tax – This is a nominal payment whereby tax is levied as a percentage of the value of the document, issued by the Notors office/land registry office.

Stamp Duty – This is payable to the Tapu (title deeds office) and is currently 3%, half is paid by the seller and half by the buyer.

Compulsory Insurance – For property purchases, you must have earthquake insurance, but it is also advisable to have contents insurance.

Legal Fees– A solicitor is strongly advised. We are happy to recommend a local solicitor who will draw up a sales contract. If you choose to use an agent to act on your behalf as Power of Attorney, this will incur Notars and translator fees.

Utilities (Water/Electricity/Council tax) – You must register these services in your name which will incur a small fee. We are happy to guide you through this procedure.

How do I pay my Utility Bills?

Electricity can be paid through a Turkish bank account by direct debit, at the post office or at the electricity office itself. Water and Council tax are payable at either the local council offices (Belediye) or post office. You cannot pay these by direct debit. There is no mains gas in Kalkan.

Is it easy to open a Bank Account?

Yes. Kalkan now has a selection of banks all offering current accounts, savings accounts and internet banking. You will need your passport and tax number to open an account.

Do I need to change my Will in the UK to include my property in Kalkan?

Yes, however it is strongly advised that you make a Turkish Will. It is a simple process which we can help you with.

The above information has been given in good faith, we cannot be held responsible for any changes in real estate law or otherwise, however we endeavour to update our website on a regular basis to provide current information.

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