Mortgages on Caracola Beach & Spa Resort - Isla Margarita

The regular readers of my blog may well be aware that in May 2008 I visited Isla Margarita in the Caribbean on an inspection trip of the Caracola Beach & Spa Resort. We now have a statement and letter of intent from the developer of the Caracola Beach & Spa Resort with regards to mortgages for the development.

The supporting statement is as follows if you would like a copy of the letter of intent please click here to request full information on the Caracola Beach & Spa Resort.

1. It is as critical for the developer as the clients that that a mortgage is in place when the properties are complete as his profit would reside in the back end payment. This is why we are extremely confident that a mortgage facility for clients on Caracola will be in place.
2. The developer is in an advanced position of negotiations with a number of first line banks with a view to providing a mortgage on Caracola. It is anticipated and expected that by the time the properties are complete that a mortgage for the 70% balance will be in place.
3. The developer is now very near to be able to provide a mortgage which he could facilitate through his own borrowing and subsequent re-lending to clients via himself. This is just one option we may have to take advantage of.
4. Any mortgage will be based upon the company owning the property with the client owning 100% of the shareholding in the company therefore the clients own personal circumstances are effectively irrelevant. It will be the company that actually takes the mortgage.
5. Caracola presents great lending criteria for a bank as the prices are expected to rise dramatically as well as there being a rental guarantee for 10 years backed by a fidelity bond.
6. When you pay over your deposit it is held in Escrow and only passed over when the holding company are satisfied that the governing criteria of the various stages are met before passing funds across.

If you have any questions please call us now on 0845 6522452

Caracola Beach & Spa Resort, Isla Margarita, Caribbean

• Beach front luxury apart-hotel resort
• 1 & 2 Bed Beach Front properties, with great sea views
• Prices from 79,000 Euros (£62,058 approx)
• Payment discounts of up to 7% available
• 7% Minimum Rental Guarantee for 10 years (net of all costs) protected by an insurance bond
• Caribbean island outside the hurricane belt
• ISLA MARGARITA HAS - Excess domestic demand, Strong economic growth, Mass tourism which is attracting more and more foreign buyers, Low cost of living, Direct flights from the UK
• Tax efficient ownership
• Pre-launch prices with excellent scope for capital growth
• SIPP compliant
• Best apart-hotel on the island
• World class developer
• Best in class rental & management company with proven track record
• Peace of mind and certainty through robust due diligence carried out by the developer.
• 30% deposit, protected by Escrow