Dear Jain and Chris

When I first went to Bansko to view property my main intention was to buy a property outright, I had just sold my house in the UK and I wanted a little investment for the future. The Agents talked me out of this as they suggested I should invest only a little of my capital and purchase a mortgage, this was the way to be a property investor. I explained that I was self-employed and had been travelling for the last 2 years and had no real proof of income but both the agents and their financial partners, explained this would not be a problem in Bulgaria. They scibbled lengthy bits of paper with all financial workings based on a mortgage valued at the purchase price. The papers do exclude the lawyer's fee and stamp duty (3.1%). All their financial workings include the price (with VAT) as a basis for a mortgage. They even assumed a 10% growth on the price and then calculated a 75% LTV mortgage on the new increased value-not onece was it mentioned that the VAT would have to be paid separately-also as this property has a 6.5%rental guarantee, they even calculated this on the increased 10% purchase price.

Since coming back I have found that I don't qualify for a mortgage (in fact the self certificate mortgage is practically non-existant at the moment and has been for some time and I should never have been advised of this fact.

I only went to Bansko in February 2008, so all this was completely innacurate
information to get me to sign the reservation paper. I consider this to be completely unethical and dishonest.

When you take the VAT away from the purchase price, I am left with a sum that includes the furniture, kitchen, bathroom etc (I was not given an option of buying it without this and I do not have a clue as to what I have been charged as I was just told the price was inclusive and that my morgage would be based on this. When you deduct the VAT from the purchase price the cost per square metre is 1,320 (including furniture), which is really high and the banks are not valuing the property at that price. In short I am going to have to find the VAT of 15,111 euros plus the shortfall of the valuation and end up getting a 90% mortgage when I thought I had put a 30% deposit down.

This will end up being about 25,000 euros which I hadn't planned for and to make it worse I bought another property in Perun Lodge which I fear will be the same or maybe worse. Naive, I know, but I have been misled and have all these 'workings' on a paper, the agent must have known that all this information was innacurate and impossible for me to achieve and they have now put me into a difficult financial position with trying to raise extra funds just to complete the purchases without losing my investment so far. This is intent to mislead a consumer and they have not replied or acknowledged any correspondence for me to find out this information about costs so far.

I feel humilated for being 'taken in' so easily and believe me I am not a pushover but this whole experience has just reduced me to despair.
If there is anyone who has any advice I'd be most grateful.

Topcat the same has happened to me re working out figures on a page all including vat and capital appreciation completely mislead and now the agents dont even answer calls, i need out and as much of my money back as possible, i would sell my contract for a loss, this should not be allowed to happened these agents should be identified and pushed out but it seems to be the done thing. Any advice i do not intend to mortgage and take out other finance to make up total price a complete joke against ordinary people

Topcat & Johnny - take legal advice in UK. The company I presume you are referring to have their head office here, so must have some liability. There agents are renowned for telling you whatever you want to hear to get your signature. You will need evidence, of course, but try the BBC's 'Watchdog'.

Hello everybody, the company that people may be referring to has their head office in Spain. There is a reason why they are based in Spain as UK and Irish laws don't apply.
I'm going to say this again and more than likely get into trouble

Guys do you realize how many of ye have been mislead. There are thousands of you, thousands. To clarify i mean been told that you can get a 70% mortgage even worse 75% LTV mortgage and in the end you cant and if you can its 20% under value.
You need to get together (group on line) and form a team.
Than you can get legal advise and if there are hundreds of ye that the legal cost would be minimal.
This is the only way forward. The BBc's watch dog would be a good avenue as i don't think some paticular Property companies have managed to sue them yet

Hi all

Getting legal advice is probably the best thing right now. I think Mick has a good idea when he says get together and forming a working group. You can pm each other off this site and get each other's emails then see if you can find more people to join in. The group can then hire a lawyer to act for you all.

Those who want to continue to buy the property, contact the person I gave you as he believes he can help on the mortgage front.

Meanwhile it is very tricky posting names on a forum. A forum is treated as if what you are saying were in print. This can lead not only to claims of slander but is most likely to lead to claims of defamation. Defamation is the one area of law where innocent until guilty does not apply. If a forum (and usually the forum owner) were taken to court for defamation, they would have to prove what was said were true (not the agent having to prove what was said as false). You can imagine this would present huge difficulties to a forum. Defamation cases are most often won by the complainant. Unfortunately, there has been much abuse of free speech on the internet, especially on forums, so it is not surprising there are these cases. Therefore it is the most sensible thing for a forum not to allow names in posts of this nature.

Hoping you all get this sorted out.

Best wishes

__________________
Jain Goodall, Director, Quest Bulgaria Magazine

Independent advice and information for owning and buying property in Bulgaria
http://www.questbulgaria.com