Construction
feasibility
Each bank has its own criteria.
Some banks might finance a percentage of the plot and the construction cost, while others will only finance the construction costs.
It is always important to ask your city council about the construction feasibility and to obtain the project’s approval as well as the construction license because, without these elements, the bank will not release the funds.
It is always important to ask your city council about the construction feasibility and to obtain the project’s approval as well as the construction license because, without these elements, the bank will not release the funds.
Release of
funds
Funds are made available in tranches and according to the evolution of the construction, which is evaluated through inspections.
During the construction period, which is called the utilisation period, you will pay an interest-only instalment, calculated from the capital you have outstanding at that time.
During the construction period, which is called the utilisation period, you will pay an interest-only instalment, calculated from the capital you have outstanding at that time.
Construction
criterion
criterion
Each bank has its own criteria.
Some banks might finance a percentage of the plot and the construction cost, while others will only finance the construction costs.
Based on the budget that is presented, the bank will evaluate the situation depending on the plot’s value and the construction cost. The presumable commercial value of the plot (PVT) – Assumed Transaction Value, will be calculated after construction. These figures will be used by the bank to determine the total financing value and the value of the first tranche.
Based on the budget that is presented, the bank will evaluate the situation depending on the plot’s value and the construction cost. The presumable commercial value of the plot (PVT) – Assumed Transaction Value, will be calculated after construction. These figures will be used by the bank to determine the total financing value and the value of the first tranche.
What do you need to make your dreams come true?
Normally, you have up to 2 years to finish construction. This is not to say that, in special situations, this deadline cannot be extended.
When the property is built (this needs to be verified through an inspection or through the issuing of the habitation license), you will start to repay the loan (after a month) plus interest.
When the property is built (this needs to be verified through an inspection or through the issuing of the habitation license), you will start to repay the loan (after a month) plus interest.
Required
Documentation
- Aside from the usual documents, you will need to present the construction or works budget (required to analyze financing).
- You will need to present the works contract and annex the above-mentioned budget.
- You will need to present the approved project by the municipality as well as the construction license issued with a minimum expiration date.
