Financing a property in Turkey

When buying brand new from a developer, most will offer financing. All of our listings provide up to date information on what payment plans are available. These tend to be 2 – 3 years interest free plans, with a deposit ranging from 30-50%.

In the case of second hand property, foreigners can now access financing like Turkish citizens. Whilst it is not cheap, it is possible. Turkish based banks can lend up to a maximum of 50% of the bank’s valuation of the property (not the purchase price).

Loans tend to be up to a maximum of 10 years, although some banks now offer 15 year financing. Interest rates tend to be fixed rates over the term of your loan, with very few banks offering variable rates. Unlike Turkish nationals, foreigners can borrow in a foreign currency. This is currently restricted to pound, dollar, and euro. As an example, Kuveyt Turk bank can currently finance 50% of the property valuation, at a rate of 0.99% per month (a profit share rate). When compared to borrowing in Turkish Lira, foreign currency rates are more favourable.

In exchange for the financing, the bank will of course take a mortgage over your title, what is called a first charge first degree lien.The bank will also send a surveyor to the property to estimate its value, an appraisal. This costs between 1,000 to 1,500 TL. Appraisals almost always return under the market value, by a margin of 10-15%. This complicates the final loan amount, reducing the usual 50% the bank would grant to around 45% of the purchase price.

Turkish Solicitors

Buying property – especially second hand – is a complicated piece of business in any country. As a foreigner, it is even more important to ensure your process is handled by professionals. Pera Property recommend a panel of solicitors, all English speaking, that have decades of experience of dealing with the tricky Turkish bureaucratic system.

In buying from a developer, the risks are controlled as Pera Property always ensure full relevant checks are conducted. Nothing can replace buying from a reputable developer with a track record of delivering on time and to specification.

Buying a resale property however can be more tricky and cumbersome, hence a solicitor can ensure full legal checks are made, as outlined in our Steps for buying guide.

Solicitors will also ensure your handover process is smooth, and you need not attend Turkey for completion procedures. A solicitor will generally charge $1,000 to $2,000 for their services depending on how much work is involved.

Pera Property already collaborate with well-established solicitors, who have track records going back decades. Whilst shopping around to find the best deal is important, choosing a solicitor should be based on track record and not cost.