Guidance notes for purchasing a property in Portugal

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Please ensure that you will have full title to the property on completion and that the "copia Simple" is available for the bank. Other documents such as the official plans of the property, a plan of the site and a copy of the caderneta predlal and certidao de encargos may be required before the lender is able to carry out a valuation. These documents are usually available from your solicitor.

With new properties, find out the date the property will be registered in your name(s), as the bank cannot lend on the security of the property until it has been registered.

Whilst all reasonable steps will be taken to secure the loan on your overseas property as soon as possible, delays may occur due to the Portuguese legal and administration system.

It is essential that you take the appropriate Independent legal advice if purchasing a new property as would be expected if you were purchasing in the UK

All mortgages have to have a suitable Life assurance policy assigned to the lender.

Properties can be purchased in either individual or joint names or in the name of an Offshore company (with personal guarantees).

It is advisable to arrange your mortgage finance In principle before agreeing to purchase a property.

Check with the estate agent/vendor that you are aware of the costs charged by the legal and Government authorities for purchasing a Portuguese property, noting that the lender will have their own legal costs for assigning the loan. (the cost of which they will advise when they Issue the mortgage offer).

Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it. Be sure you can afford the repayments before entering into any credit agreement.

The local currency equivalent of your liability under a foreign currency mortgage may be increased by exchange rate movements.

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