# Property Purchase Advice



## Dohadestroyer (Mar 20, 2009)

Looking for advice re: Porugese mortgages. We have been told that we would be applicable for a 75% LTV mortgage against a property on the silver coast. Does anyone know how the banks assess the property valuation. Do they simply base it on the asking price, agreed purchase price, do they under or over value? What is the norm? Appreciate help!


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## silvers (Sep 22, 2008)

Welcome to the forum, I think that Omostra is the man to answer this question.


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## omostra06 (Sep 11, 2007)

silvers said:


> Welcome to the forum, I think that Omostra is the man to answer this question.


I can give it a go...

up until about 3 or 4 months ago the engineers working for the banks would do a valuation on a property for mortgage based on a few things, they would take into consideration the price the property was offered for sale, they often did not ask what the agreed sale value was, the size of house, location, land size etc etc.

When they have the value they think the property is worth, often conveniently close to the advertised price, they would give this to the bank, who would then offer 70% or 80% of this value in way of a mortgage.

Now, what is happening, they arrive at the value they think its worth, lower it by around 10% to 20% then offer 70% or 75% of this new lower value.(unofficially)

some banks at the moment (BES for example) are giving the house a value, and not the rural part of the land, so they are offering even lower values.

its all to do with the current financial situation, and they are being very cautious at the moment.

the situation is causing problems for people trying to buy as they are getting offered much lower mortgages than a few months ago, so they need to find the shortfall which can be hard.


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## C Allcock (Jan 1, 2009)

omostra06 said:


> I can give it a go...
> 
> up until about 3 or 4 months ago the engineers working for the banks would do a valuation on a property for mortgage based on a few things, they would take into consideration the price the property was offered for sale, they often did not ask what the agreed sale value was, the size of house, location, land size etc etc.
> 
> ...


Hi

My husband and I own two houses and land in Portugal and would like to take out a small mortgage to finance renovation on one of the properties. Could you offer any suggestions of how we could do this and what banks are most favourable to look at this. We did hope to secure this type of mortgage by giving bank title deeds of our house and land. Do you think this would be acceptable.

Thanks 


Chris


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## omostra06 (Sep 11, 2007)

most banks will offer a min of 30,000 euros for a mortgage, if you already own the property and want the money to improve the property they may lend you the money, but they do like the house to be habitable and not a ruin, they will also want to look at it for a valuation and speak to you about what your improvement plans are. they will also look at your income if you have no income its unlikely that they will want to lend you any money,
i know you can secure a mortgage on savings if you tie them in to the mortgage, but for a loan on a property its Best to go and speak with a couple of banks see what they offer you.


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