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useful to know ! Morocco

Discussion in 'Morocco Property' started by Key Mortgages S.L, Jun 21, 2008.

  1. Key Mortgages S.L

    Key Mortgages S.L New Member

    Mortgages in Morocco are available for non residents up to a maximum of 70% of the property purchase price. The process and communication with bank can be difficult and slow so patience with them is required.

    Rate bands are set twice year in January and July by the government and each bank must operate within these bands. The banks can only do one mortgage per client as the law in Morocco only allows you have one mortgage. You can buy as many properties as you like but all except one must be bought cash. Each bank will ask you to make a sworn declaration that you have you have no other mortgages in Morocco. It is not clear how the authorities would treat a non resident who did not declare a previous mortgage and we would not suggest putting it to the test.

    The banks will assess all liabilities in the UK and look for clients to not exceed in the region of a 35% debt to income ratio based on after tax incomes. The banks will not assess in general buy to let incomes from the UK but this can be on a case by basis and will depend on how exposed to this the client’s incomes are.

    When thinking of taking a mortgage in Morocco for completion there are two important things for you to consider.

    One is that the government levy a tax of 10% of the interest payment of the mortgage monthly which is deducted by the bank at source and paid on your behalf so does increase the costs each month by this amount.

    The second and most importantly is what you are able to do at a later date with any profits you make on sale. Below is our current understanding professional legal advice should be sought to clarify how this might affect you.
     
  2. Lee Filkins

    Lee Filkins Administrator Staff Member Premium Member

    subject

    "The second and most importantly is what you are able to do at a later date with any profits you make on sale. Below is our current understanding professional legal advice should be sought to clarify how this might affect you."

    Sorry, could not find any information on, your understanding ?????? Can you please post it again.

    In view of the fact that only one can only have one mortgage at a time and many people I know not knowing this have bought two or three properties in one or different development . What is your advise to them, barring robbing a bank.
     
  3. Key Mortgages S.L

    Key Mortgages S.L New Member

    Morocco

    Hi Camel

    I'm affraid they will be in for a nasty suprise !

    in fairness they should contact their lawyer straight away and ask them why this was not explained to them, also the real estate agent who sold them these properties is at fault, thinking of their own pockets no doubt rather than giving the customer the right service.

    Some of the blame also has to lay with the buyer for not fully doing their home work when buying in a foreign country !

    The only option they may have is equity release from UK property (If they have any) !

    I am happy to speak to any friends / clients that you have or if you wanted we can discuss these issues more.


    I hope this helps...

    I will post the rest of the information for you...

    kind regards

    Steve
     
  4. Lee Filkins

    Lee Filkins Administrator Staff Member Premium Member

    in fairness they should contact their lawyer straight away and ask them why this was not explained to them,

    THE PROBABILITY IS THAT THE LAWYER, WAS NOT INFORMED THAT THE BUYER INTEND TO BUY INTENDS TO BUY ANOTHER PROPERTY OR BUY WITH THE HELP OF ANOTHER MORTGAGE.

    also the real estate agent who sold them these properties is at fault,
    HE OR SHE COULD BE IN THE SAME POSITION. I AM NOT AN AGENT BUT I DONT SEE WHY THEY SHOULD BE RESPONSIBLE FOR THE ABSURD RULES & REGULATIONS.

    thinking of their own pockets no doubt rather than giving the customer the right service.
    MY ABOVE COMMENTS APPLY.

    Some of the blame also has to lay with the buyer for not fully doing their home work when buying in a foreign country !

    AGREE, BUT TO BE FAIR HOW DOES THE BUYER KNOWS, THERE IS NO INFORMATION AVAILIBLE. MOROCCAN GOVERMNENT SHOULD SET UP A WEBSITE IN FRENCH, ENGLISH, SPANISH ETC TO SET OUR THEIR LAWS, INCLUDING VAT ON INTREST RATES.

    The only option they may have is equity release from UK property (If they have any) !

    NOT IN THE PRESENT CREDIT CRUNCH CLIMATE. EVEN IF ONE HAS EQUITY THE BANKS AE NOT VERY KEEN.

    I am happy to speak to any friends / clients that you have or if you wanted we can discuss these issues more.
    OK

    I hope this helps...

    I will post the rest of the information for you...
    LOOK FORWARD TO READING IT.
     
  5. Key Mortgages S.L

    Key Mortgages S.L New Member

    Hi Camel

    I agree there should be a site but STILL, If I was buying in a foreign country (And I have, I own a property in Marbella) then I would not do so with out thoroughly making sure I had done my home work which in my case was speak to lawyers.

    Going back to what can clients do that have got more than one property then I am happy to help them with the 1st mortgage and then try and put them in contact with a UK broker that I use who can look at maybe refinancing their UK property to maybe fund a 2nd ! There really is no other option.

    If this helps and you have clients I will happily talk to you about paying you an introducer’s fee.

    Please let me know.

    Kind regards


    Steve Keys
    Director
    Key Mortgages SL
     
  6. Lee Filkins

    Lee Filkins Administrator Staff Member Premium Member

    Steve said:
    "If I was buying in a foreign country (And I have, I own a property in Marbella) then I would not do so with out thoroughly making sure I had done my home work which in my case was speak to lawyers"


    You are indeed right in saying that one should do their home work and I do and as there is no Utopia in certain cases you also have to take a view on things. A buyer can look at the developer, their capacity, past finished products, licences, town plans etc.

    The buyer first has to have an inclination of the situation before he/she can ask. E.g if you know that a non resident can obtain mortgage, than all you have to worry about is the lenders policy & you as a risk to the lender. You cannot know that the law restricts there no's, as surely its the risk that the lender has to evaluate.

    How can you know that VAT is being charged on interest rates, as no where in the world this happens and besides from principles of economics this distorts the finance market.

    The same again everywhere in the world your personal belongings when imported are duty fee, but not in Morocco. So if I have my favourite chest of drawers that I have been using for years that has already been taxed will get taxed again if I take it to my property in Morocco.

    Moroccan Government has been promoting as rental income is tax free for five years. Again this not true as there 20% on the rent and all the services such as cleaning etc. So its not Tax free. There is indirect tax of 20% and not income tax, at least if there was income tax you could offset your expanses. How would the buyer know that the Government will have a tax some on for e.g no of windows in your property or a floor tax as to what floor your property is constructed.

    I can assure you that you can take any no of lawyers in Morocco & they will not tell you half of what I have posted above.

    In the absence of a website etc, how can an end user know what question to ask. Please don't tell me about lawyers, as you have bought in Marbella & I am sure that you know very well the level of incompetence/corruption the lawyers offer and yes the client pays for it.



    However the catch 20 situation is How does a buyer
     
  7. Key Mortgages S.L

    Key Mortgages S.L New Member

    Yes Marbella has had its problems and I would imagine most people have heard how corrupt it was, BUT I'll think you find now that Marbella is one of the safest places to actually buy a property these days as No banks will lend with out the required licences being in place and that the property falls within the PGOU of 1986.

    Anyway that’s not what we have been discussing !
     
  8. Lee Filkins

    Lee Filkins Administrator Staff Member Premium Member

    I did not wanted to hijack the forum & turn it into a Marbella forum. As you mentioned Marbella and all I was just trying to bring to your attention what good are the lawyers !!!!!!!!!!!
     
  9. Key Mortgages S.L

    Key Mortgages S.L New Member

    Morocco

    Well how do I answer that question!! How good are Lawyers !!!!

    I have always been happy and satisfied with my Lawyers so again if a client is buying in Morocco then they should make sure their Lawyer has the correct qualifications to be able to advise in Morocco !

    I still stand by that if you do your homework properly then it will save you many problems.

    All I am doing is trying to pass on information here that I know to help potential new buyers, I can not reverse time and help clients that have not been as lucky as to of had my advice and knowledge Camel; although I do very much sympathise with them!!!
     
  10. Lee Filkins

    Lee Filkins Administrator Staff Member Premium Member

    Fair enough, I think forum users will at least know that you cannot ask abnormal questions. An Abnormal question to a Moroccan lawyer in this instance is not an abnormal as he/she encounters them day in day out. Here lies the problem for the buyers.
     
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