Stage Payments and Financing

When buying off-plan you need to pay for your property in stage payments throughout the duration of the construction.

By law, at certain stages of the development, it will be officially certified that a particular stage of the construction has been achieved and subsequently a request for that stage payment will be issued.

For example, when the roof has been completed a demand for 10% or 15% of the total amount will be requested.

There are typically about 10 payments in total, the first always being the reservation deposit (maximum 5%), the second payment is just before you sign at the notaries office and the final payment of 5% is always kept for the day of the reception of the property and the official handover of the keys.

To finance your off-plan purchase mortgage lenders will take on board the stage payments once your own deposit has been paid. There are some interesting opportunities by banks offering loans with deferred payments of up to 2 years with no capital and sometimes no interest repayments. In most cases this will cover the period of construction until your property is habitable.

This is a particularly interesting option for buy-to-let investors who do not want to have mortgage repayments before they can earn rental income from their property.

Please contact us for recommendations of lenders.