Hello guys, and welcome back to your window on the Italian mortgage world!
Today, we write about special requests that sometimes arrive at my contact box.
Foreign clients are increasingly interested in buying some properties that could be destinated to create a business in Italy.
Well, the business in Italy is not so easy, but this is not my field!!
Clients often want to buy countryside houses to establish a B&B or give new energy to an existing B&B, maybe using an existing international network.
Or they like to buy a farm or a wine production estate to make some very good Italian wine.
Whatever your goal, let’s say that getting a mortgage to purchase a property that is intended to be a great vacation house and a basis for business is more difficult than usual.
This is because the lending bank will have to consider that the client will be subject to the result of that business in this special case, and the bank usually does not want to be involved in the riskiest activity.
Anyway, we are still having success also on this kind of application.
The operation is often made through an Italian company that will buy the house and runs the business consequently.
This is the best way also for the bank.
What happens is that clients will be required to have, anyway, personal incomes to be shown to the bank as eventual support for future mortgage payments (if the business goes badly); that is why it is quite impossible to accept requests from people who want to change their lives completely.
Banks hate changements, especially life enhancements, because they represent the riskiest situation.
So, purchases to buy business properties can be accepted only if the client can still prove to have personal income.
Of course, you will be free to leave your country to stay in Italy and start a brand new activity, but you will have to do it by yourself and not try to receive help from banks.
Coming back to potential successful requests, the bank will evaluate the mortgage application with an analysis of the personal position/income of the client and also (why not) with the potentiality of the new business; so it will be much better if the business property is generating profits on some ways (of course, the bank knows that if the property is on sale very probably there will be some problem on the business but maybe there could be a real potentiality on it that the new client/owner can develop successfully).
It will also be better if the client already has experience in the future business. Maybe he is making the same in his country or has really good connections to show because of his actual job (which may be in another sector but can be considered complimentary).
The physical person will initially approve the mortgage application because the client will establish a new Italian company to make the operation.
After this first personal approval, the bank will switch the approval to the new company.
In this way, the client does not risk establishing a company and then getting a refusal from the bank (with unuseful costs).
Waiting for our next discussion, I wish you good luck on your Italian property search! You could be the next one to make the best Italian wine!!
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