I watched the live transmission of Micheal Jackson’s memorial last night. A tear almost fell.. the mango in the throat was gigantic. RIP. Al Sharpton’s speech was superb. I loved Jennifer Hudson’s performance and Lionel Richie had me wanting to attend service at Kampala Pentecostal this coming Sunday. I love love that song.
Perhaps some of you can shed light on this. I have been comparing the house buying procedure here in Denmark to England and Uganda and find it very interesting. I am thinking that my memory may not serve me right hence the need for some clarification.
When shopping around for a house in Denmark, among the paper work you recieve is something called a “Tilstandsreport” this is a suveyor’s report about the condition of the property. Whatever he can see with his eyes (no machines are to be used) is noted down and this report is available to the buyer. It is valid for only a year. On this report one can also see how much money the seller still owes the bank. Big Al and I were getting really shocked because we would go see a house being sold for the equivalent of say$400,000 and on reading the report would see that the seller still owes say $300,000 and has been living there for 17 years and still has 30 years left on the mortgage yet the seller is in mid fifties or sixties. I was not understanding how that worked.
Anyway so when we were at the bank I just had to ask (that’s how one learns) and the bank guy explained it thus. In Denmark, the age of the buyer is not an issue because the house is a security. The bank will usually send out an independent valuer to the house to value the house. Because the value on the house is confirmed by this guy, the bank knows that they will get thier money bank should the buyer die hence if you are seventy and you want to buy a house at $1,000,000 and have at least 10% of the deposite they will loan you the money. He also explained that many pensioners who have finished off paying thier mortagages also take out big loans on thier house as a source of income. So say you are 65 and your pension income is not good, but you have paid off your house, you go to the bank, get a very big loan and live off that money for the rest of your life, the bank secure in the knowledge they can also sell the house to recoup thier money. So your monthly payments on the loan are not very big.
When I compared this to England and Kenya (I may have my facts wrong so please correct me) the older you are the higher the deposite the bank will want and will offer you a shorter life span on your loan because you as the buyer are deemed a high risk. About a year ago, the bank that had fiananced the estate my mum lives in sent a representative to sell loans to folks on the estate. The loans were for folks wanting to re-do thier houses, you know things like painting, changing windows, redoing roofs etc. Mum was not approved cause she was not working at that time though the house is paid off and could have put up the house as security.
Anyways I find it interesting and would like to know if I have my facts right as regards the age of the buyer affecting the loan process in UK and Kenya.
Big Al is convicinced the main difference lies in the bank’s valuer’s presence. The fact that he goes out and ensures that the said value of the house is actually that. We are not sure if this happens in Kenya or UK and if it does then why do banks give older buyers a bit of a hard time??