Buying Property in Barbados

Buying a home

When buying a property in Barbados or the Caribbean, there are many procedural steps that need to be carefully followed.  By using the services of Blueshore, we can ensure all the risks and potential problems are eliminated in order for you to acquire your dream home with the minimum of fuss.

We appreciate that the majority of our clients will need financial assistance to purchase a Caribbean property. When arranging finance, Blueshore will look at our client’s individual circumstances and then provide the mortgage product that best suits their needs.  At this stage we can let you know the maximum amount the bank will lend based on the information you provide to us.  This allows you to look for a property within your affordable budget.

As soon as the sale has been agreed, Blueshore will arrange your finance & process your mortgage application in the UK or at our office in Barbados.  We will then proceed to complete the following:

• Completion of your application form
• Collation of all supporting documents ensuring these are certified and Notary stamped where applicable
• Submission of application form
• Obtain appropriate Property Appraisal
• If required, instruct Solicitors/Attorneys on your behalf
• Assist in opening a Barbados bank account to facilitate mortgage payments
• Assist and provide advice on all other relevant fees

Building a home

If you choose to build your home, knowing the maximum amount the bank will lend will help to factor in the cost of the land (if required) and the house you want to build. At Blueshore you will be able to discuss with any one of the registered Architects on our panel, the size and type of house you want to build. They will design a home to your specification and prepare the drawings for planning permission.  The procedure will be the same as above.

Once finance has been arranged, you are in a position to sign the sale agreement.  As in the case of a new build, agree for the contractor to receive the first draw down payment.

On purchase, there is a 30-90 day period for closing.  On building a home, construction takes approximately 6 – 8 months to complete.

Services Available

We can arrange a domestic mortgage for you in the Caribbean to borrow against the value of the property being purchased. Different rules and services will apply depending on whether you are a Barbadian National or a non-Barbadian National. As a general guidance, we now list the main options available to you.

Purchaser Type	Options Available from Blueshore
For Barbadian & returning Nationals	You can release equity in your UK property so you can have a UK based mortgage to finance the deposit or even the full payment of your Caribbean home We can arrange for you to borrow in the Caribbean against the value of the property being purchased so you have a domestic mortgage
Lending facilities	Borrowing is done on domestic terms Lending is in Barbados dollars at interest rates linked to local bank base rate Ability to finance up to 95% of the purchase! (100% in certain circumstances) Up to 30 year term are available Fixed rates are available Both Comprehensive Owners Insurance and life insurance are required
For Non Barbadian Investors	You can release equity in your UK property so you can have a UK based mortgage to finance the deposit or even the full payment of your Caribbean home. We can arrange for you to borrow in the Caribbean via an Off-shore mortgage against the value of the property being purchased.
Lending facilities	Borrowing is done on international mortgage terms Lending is in hard currency (US Dollars, Canadian, Sterling, Euro) at rates linked to base rates in these countries Up to 70% financing for property purchase Up to 60% for properties US$ 1.5 million and over Up to 15 year term Fixed rates are available Property insurance is required

Fees Applicable

As with any property transaction anywhere in the world, there are fees that are payable and these are listed below.

Fee Type	Fee Payable
General property transaction payments	10% deposit on signing the sale agreement which is prepared by the seller’s attorney. 90% payment on the transfer of deeds (approximately 90 days later) Ownership of property must be in either an individual name, a local or foreign company name, a trust or other entity. Funds for the purchase that are brought in from overseas are registered with the exchange Control Division of the Central Bank of Barbados to facilitate repatriation of these funds at a later date if you decide to sell the property.
New development transaction payments	10% reservation deposit 85% stage payments throughout the construction period 5% retention
Purchaser’s Attorney Fees	Approximately 1.5% to 2% of purchase price
Miscellaneous Fees:
Monthly Maintenance fees (for apartments & condos)	These range from US$100 upwards
Annual Property Tax	Payable annually (ask us for the latest rates applicable)

Bank Charges

Banks apply charges for the preparation of mortgages and these can be approximately 1%.

Tel: +44 (0)1372 730230    Fax: +44 (0)1372 747965    Email: info@blueshoreuk.com