| Property
Purchase |
Although many people think that purchasing a property
in Switzerland is difficult, the process is relatively simple but
somewhat drawn out and there are 3 steps to completing your purchase
| 1. |
Signing a contract. As in the UK
both parties will need the services of a solicitor but the same
solicitor can actor for both vendor and purchaser. Legal fees
are in the region of 3% of the purchase price of the property
for foreign buyers. |
| 2. |
There is then a short delay while
the authorities check that you do not own any other property
in Switzerland. As an "etranger" (or foreigner) you
can only own 1 property at a time in Switzerland this includes
joint ownership between husband and wife for example. |
| 3. |
Stage 3 can
take up to 18-24 months and the purchaser cannot take legal
possesion of a property until approval has been given by the
Canton. However, once stages 1 & 2 have been completed successfully,
stage 3 is a formality |
|
| Mortgages |
We understand from the Banque Raiffeisen that they
are prepared to offer mortgages to purchasers of apartment in Les
Muverans (subject to status) from the time that a sales contract
has been signed rather than from the time that authorisation has
been given by the canton. Interest rates are reasonable and are
set out in the table below.
| 1ere Rang = 55% of the value of the property |
3.25% approx |
| 2eme Rang = 10% of the value of the proprty |
4.25% approx |
| Total = 65% of the value of the property |
|
The Banque Raiffeisen have indicated that they will
lend up to 65% of the value of the property. In Switzerland mortgages
are split into 2 parts: the "1ere Rang" is 55% of the
value of the property and carries a lower interest rate while the
"2eme Rang" is 10% of the value of the property (these
%ages may vary with other banks). The "2eme rang" has
to be paid off within 10 years of purchasing the property while
the 1ere rang is normally paid off within 25-30 yrs.
With the Banque Raiffeisen Interest is normally
paid every 6 months and the capital repayment is paid once a year
on the 31st December. These payment times vary from bank to bank.
Cost to create mortgage = roughly 1%
|
| Property
Management & Charges |
A PPE (Propriete par Etage) has been created to
divide the building into 1,000ths and each apartment has been allocated
n/1,000ths depending on it's surface area and position as laid out
in the PPE document.
The daily management of the building will be carried out by the
Agence Immobilier Maytain Sarl and an annual meeting of all owners
will be held to agree the annual maintenance budget, renovation
fund and other matters relating to the building
Annual charges for each apartment can be broken
down into three sections
| 1. |
Maitenance
Charge. This will cover all aspect of maintenance including
heating, cleaning of all common areas, snow clearing, exterior
cleaning and grass cutting, building insurance and management
charges. |
| 2. |
Renovation Fund. Although the building
is new a renovation fund will be in place |
| 3. |
Income taxes. All foreign property
owners will be liable to pay Swiss Income tax on their property.
This normally amounts to between CHF1,000 and CHF1,500 per annum |
The amount of maintenance charges and contribution
to the renovation fund will depend on the number of 1,000ths allocted
to each apartment as laid out in the PPE document.
Contents Insurance and personal electricity usage
is not included in the annual maintenance charge.
|