Its taken a year and we still don't have a mortgage!!

When we started this project, nearly 3 years ago, we were told that the houses (for there were 2 in the beginning) would be ready in a little over 12 months.  So, by rights, we should now be visiting on a regular basis.  However, since that time, we had a change of heart (there were reasons - in a forthcoming update), and are only building one house.  

Last May, we started to talk in earnest to HSBC in Athens about a small mortgage for part of the building costs for this one house.   We did think of going with Alpha Bank at first - there is a branch locally on the island.  We wanted an 'in principle' agreement in writing from them, after a brief conversation with the local branch manager, stating that we could borrow the funds he had verablly agreed we could, after his cursory inspection of our financial papers.  This was not forthcoming - 'It is sorted, we do not do this in writing'.  We decided that this was not sorted enough for us.  Instead, we tried to get a mortgage through a broker in the UK, and got so far down the line with this broker and Piraeus Bank.  Piraeus wanted to see that the land we had bought had been registered in the Land Registry for at least 7 years before lending against it.  Unlike the UK, the Land Registry in Greece is not comprehensive, although it is growing.  But, our land had been passed between family members prior to being sold to us.  There had been no need to register the land until we bought it, and that was not 7 years ago.  Piraeus turned us down for this reason.

So we discovered that HSBC offered a Premier Customer scheme, which, amongst other things, meant that you could bank internationally, and have an account manager looking after your interests in each country.  We transferred funds so that we could take advantage of this, and applied for a mortgage.  Since then, HSBC Athens have very patiently worked with us, and yet, nearly a year on, we still do not have a mortgage! At first, we needed a copy of the planning permit to give to them, to show that we were genuinely allowed to build.  That was due to be produced about April last year.  It finally came through in about October/November.   Various reasons, week by week, were given as to why the planning committee could not complete the permit, including a suggestion at one point that the lady chairman had a hair appointment (this may have been an ironic comment of course...).  Family crises are very common in Greece - a baptism, a sick relative, a cousin's wedding - they are all good reasons why something which was going to happen suddenly does not.  Recently I read John Humphrys book  'Blue Skies and Black Olives: A Survivor's Tale of Housebuilding and Peacock Chasing in Greece', and was heartily relieved to discover that this is not personal to us.  It happens all the time.  Deadlines and appointments in Greece are not the definite things they are in the UK.  I'm not saying one way is better than the other, as sometimes, it would be nice to take advantage of that flexibility myself.  But prepare yourself if you are thinking of doing something with a deadline in Greece - chances are, it won't happen.  (Incidentally, JH's book is very interesting to those of you contemplating or embarking on a similar project.  If that's you, don't read it and think 'It won't happen to me' - because it will!)

HSBC requested some additional legal papers relating to the land purchase at the end of February this year.  By this time, HSBC had agreed that we were good for the money, they were doing their due diligence on  the land as security.  The 7 year registry requirement as raised by Piraeus, did not get flagged up.  However, there were some queries over the previous owner's family's rights, and a couple of relevant papers were missing from the pack.  We called the solicitor who acted for us in the original purchase, and were told that this was not a problem, the papers would be sent the following day.  It is now mid May, and guess what, the papers have still not been sent to HSBC.  Well, maybe they have - perhaps even as I type, they are with a courier.  But without a tracking reference number, or a receipt confirmation from HSBC, I no longer believe that this will be the case.  One of these papers is, apparently, a paper which needs to be signed by a dead man, to agree he has no claim to the land!  At least, that was what was being requested at one point - presumably a death certificate will be adequate proof.  We cannot fault HSBC, their care is also peace of mind for us - if they will lend on the land, we can be pretty sure that there is no doubt it is ours.  To be honest, I didn't doubt this until we started being asked for paperwork relating to the purchase.  I didn't even doubt it when the solicitor told us that it would be sent.  I did begin to doubt it 4 weeks later when nothing had yet happened.  Perhaps the paperwork did not actually exist, and the solicitor was simply stringing us along - everything felt very uncomfortable.  Our agent on the island literally camped outside the solicitor's office one afternoon, to get in to see them, and to make sure this paperwork existed, could be copied, and would be sent.  And even after that, that paperwork did not arrive when it was promised.  On reflection, I think it is too British of me to expect that a solicitor will act upon their promises, and be surprised when they don't. I must learn to be more Mediterranean.


Hopefully, we will get these funds sorted soon.  Assuming this hiccup gets resolved this week, next we have got to receive a copy of the bank's contract and get it translated.  Now, I wonder what surprises lay in store when that happens...