G
Grant Rawlings
New Member
Riads in Marrakech in the Medina were traditionally recorded with old fashioned papers, called Melkia. It means they don’t possess title deeds as such, but rather historic scrolls which document ownership, often detailing centuries of owners.
One of the main challenges of purchasing a riad with old papers is transferring them into a modern title, which is registered in the National Land Book. This will ensure ownership is guaranteed and protected by law, and that no one can lay any historic claim on it.
The process is lengthy, but thorough in establishing both the true identity of an owner and officially demarcating a riad, and is normally initiated at the time of purchase. In order for this to happen, your notaire will probably charge you an additional fee of 1% to get the ball rolling, then several months after that, will be several meetings at your riad with geometricians and other officials from the Land Registry.
It is definitely worth noting that no European or Moroccan bank will lend against a riad with old papers and if one is of interest with Melkia, then you will either have to purchase the riad with cash, or raise money by remortgaging an existing property elsewhere.
If there aren’t any hiccups, or there isn’t opposition to your ownership from a previous owner that creeps out of the woodwork, which is uncommon, but not unheard of, it takes a year and a half usually to title a riad, but foreigners can pay for an acceleration of the process under exceptional circumstances.
Once a title is obtained though, the value of a riad is automatically increased, as it is more sellable and of interest to a wider market. (The wider market being buyers who need to obtain mortgage finance with a bank and, or credit for renovation work).
Currently there are no British banks in Morocco, but in the case you are looking to buy a titled riad, you can get mortgages from a Moroccan bank of up to 70% of its value.
Current interest rates on Moroccan mortgages are around seven per cent and so, while these can be arranged on both a variable and fixed-term basis, it still works out cheaper if you raise finance in the UK, perhaps by remortgaging an existing property.
If anyone would care for advice on modernizing papers, or information on the process and what is required from you throughout, I would be glad to help.
One of the main challenges of purchasing a riad with old papers is transferring them into a modern title, which is registered in the National Land Book. This will ensure ownership is guaranteed and protected by law, and that no one can lay any historic claim on it.
The process is lengthy, but thorough in establishing both the true identity of an owner and officially demarcating a riad, and is normally initiated at the time of purchase. In order for this to happen, your notaire will probably charge you an additional fee of 1% to get the ball rolling, then several months after that, will be several meetings at your riad with geometricians and other officials from the Land Registry.
It is definitely worth noting that no European or Moroccan bank will lend against a riad with old papers and if one is of interest with Melkia, then you will either have to purchase the riad with cash, or raise money by remortgaging an existing property elsewhere.
If there aren’t any hiccups, or there isn’t opposition to your ownership from a previous owner that creeps out of the woodwork, which is uncommon, but not unheard of, it takes a year and a half usually to title a riad, but foreigners can pay for an acceleration of the process under exceptional circumstances.
Once a title is obtained though, the value of a riad is automatically increased, as it is more sellable and of interest to a wider market. (The wider market being buyers who need to obtain mortgage finance with a bank and, or credit for renovation work).
Currently there are no British banks in Morocco, but in the case you are looking to buy a titled riad, you can get mortgages from a Moroccan bank of up to 70% of its value.
Current interest rates on Moroccan mortgages are around seven per cent and so, while these can be arranged on both a variable and fixed-term basis, it still works out cheaper if you raise finance in the UK, perhaps by remortgaging an existing property.
If anyone would care for advice on modernizing papers, or information on the process and what is required from you throughout, I would be glad to help.
