On paper, there are restrictions for foreigners looking to acquire property in Italy but in reality, it is fairly straightforward.
Those located outside of the EU, in a country with no reciprocal agreement, will require a valid residence permit to acquire property in Italy. Those located within the EU will have unrestricted access to the property with Brexit unlikely to bring about any major changes for UK investors looking at Milan and Rome.
Experts are already predicting the confirmation of reciprocal rights between Italy and the UK in the not too distant future – similar to those currently in place between the US and Italy.
Learn MoreAs you would expect, there are two types of mortgages available, interest only, and capital repayments. Due to the specialist nature of the Italian high-end property market, mortgage funding tends to come from the private banking sector although some traditional banks are still competitive. It is fair to say that the likes of Italy and Spain do not have a traditional banking community which is as developed as the UK. As a consequence, for those foreign mortgage transactions which are a little more complicated, private banking may well be the only real option.
We have access to a whole array of private banks and mortgage financiers across the globe. Interestingly, private banking finance for Milan and Rome mortgages can reach 70% of the LTV on a capital repayment basis. To access this level of finance you would need to place 40% of the loan value with the lending institution for the life of the loan. This ensures that investors receive maximum capital release and lenders have significant headroom in the event of unforeseen issues.
While there may be opportunities to acquire traditional bank mortgages in Italy, we see many high net worth individuals going towards private banks. Due to the way in which private banks are financed they are more flexible and more adaptable when it comes to considering worldwide assets and worldwide income streams. They also tend to be more understanding of bonuses and regular payments aside from traditional salaries.
We have a very strong working relationship with many private banks, we know the information they require, the best banks for your situation, and how to present your finances in the best light. As a consequence, where some mortgage brokers may step back because of complications we tend to step forward and find a solution. The ability to mould a mortgage finance arrangement around your finances means you maximise capital release while minimising financial liabilities going forward.
Here at Enness, we have experience going back many years and contacts right across the mortgage finance market. Our independent status allows us to speak with any lenders in the marketplace and ensure we secure the best deal for our customers. Why not call one of our experienced brokers today for a no obligation chat? You can discuss your specific circumstances, your aims for the future and we will advise you of readily available solutions.
Arrange A CallbackLocation: Italy
Value: €3,000,000
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Value: €795,000
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Value: £1,950,000
