Introduction to Danish Mortgages
Denmark offers a number of positive attractions to the UK property investor. The country is politically stable, has a similar climate to northern Britain and 70 percent of its population (95 percent of young educated people) speak English. Transport links between the two countries by sea and by air are also well established.
Danish mortgages are available to overseas borrowers on the same terms as they are available to Danish borrowers, without being subject to any additional legal or governmental restrictions.
Danish Property Market
All properties in Denmark are registered with the Danish Land Registry. Ownership and mortgage details must be registered before any property dealings with third parties are permitted to take place. All registrations have been fully computerised and anybody is entitled to gain access to information held by the Danish Land Registry.
Danish law dictates that only estate agents, lawyers, banks, mortgage banks and insurance companies are permitted to act as intermediaries, during the sale of properties. In addition, all firms of estate agents must be headed either by a fully qualified estate agent or lawyer. The net result of these regulations is that many property sales and purchases are conducted entirely by estate agents, with no other professional involvement required.
The activities of estate agents are strictly regulated under the Danish Property Transaction Act and other associated property laws. Unsurprisingly, therefore, 95 percent of all Danish estate agents belong to the Danish Association of Chartered Estate Agents and are covered by its strict ethics code which was drawn up in collaboration with the Danish Consumersí Council.
If a Danish financial institution wants to operate an estate agency, the enterprise must be carried out by a separate company, from separate premises, headed by a qualified estate agent or lawyer. Further, this position must be the individualís primary job function (i.e. one person being titular head of several estate agencies is not permitted).
Mortgages are available to overseas borrowers on the same terms as they are available to Danes;
the Danish Land Registry holds details of all properties in Denmark;
Danish estate agents are strictly regulated.