How Can You Get a House in Denmark?

October 24, 2018

Denmark is one of Europe’s most attractive cities and a popular place for those coming in the country to stay for work or to settle or to buy/rent a house.

Immigrants are as a rule confined by law from getting residential property in Denmark unless you address Denmark the centre of your life. It means getting a permit from the Ministry of Justice to finalize the purchase. This license is not just a rule, and you need to document, that you are getting permanent residence in Denmark. EU citizens working in Denmark are free from these rules, but you should consult a lawyer to define your specific options.

How do get a permit?

Your lawyer will appeal to the Ministry of Justice. The permit is free of charge and is generally issued within two weeks. But make sure you talk to your lawyer first to make sure, that you satisfy the requirements for the permit. To get a permit from the Minister of Justice, you need to translate all your important documents (birth certificate, ID proof, passport, etc.) from your native language. Such as Danish to English translation. And for this task need to hire a professional translation service.

The first thing to remember if you are arriving in Denmark is that there are two times of the year in particular when renting/buying property is difficult: January and September. In these months, large numbers of professionals come to work in the city on expat contracts, so competition for rental property is particularly tough.

How do you pay for the property?

Several people in Denmark find their property with the help of a real estate agent and use a lawyer to handle the legal work that is involved. The house buying process can generally take several months. Most people support their real estate investment by taking out a mortgage.

Applying for a mortgage

A mortgage is a loan with a long-term and carries a lower interest rate than an ordinary bank loan. There are several different sorts of the mortgage. Your bank manages your creditworthiness. You can get a mortgage certificate so you know exactly how much you can borrow before you start looking for a home.

You can mortgage up to 80% of the purchase price. Of the left 20%, you must provide a down payment comparable to 5% of the purchase price. Usually, if additional financing is needed, a bank loan is taken out to satisfy the left 15% of the purchase price.

Whether you acquire money from your bank or a mortgage-credit institution, you must give security for the financing in your house. Until the loan or mortgage is paid, the bank or mortgage-credit institution holds command over the property – which determines that the property is used as security for the money acquired. 

What happens when there are potential defects in a property?

Sellers usually hold a property record that is organized by a building expert and can make this document open to all considered buyers. The paper gives specifications of the physical state of the property and any possible defects.  If the buyer demands a transfer deed, the cost of which is distributed between the buyer and the seller of the property, this property report must be provided. If no property report is given, the seller can be liable for 20 years for any serious flaws that could appear. A transfer deed provides security for the buyer against any defects or faults that may occur and insurance for the seller against any calls from the buyer.

When the offer is accepted, and both buyer and seller have confirmed the purchase agreement, the buyer should give a deposit of 5% of the purchase price with the estate agent. There is also a cool-off time of 6 days after signing the purchase contract during which the buyer can annul that agreement, and may be expected to pay the seller 1% of the purchase price.

The balance of the purchase price is payable on the accepted closing date for the sale of the property. Multiple documents can be included in the purchase of a property in Denmark, which is given to buyers via their lawyer.

How is your title in the registered property?

Your title in your new home will need to be listed in the so-called Land Register. You will be recorded as the owner of the house or flat. Also, the mortgage or loan which you may have brought out to fund the purchase of the property, or to support any later restoration, will be registered.

You will be priced a fee for registering the title and for registering any lender or lenders and their respective charges over the property.

I hope you find this article “How can immigrants get a house in Denmark” valuable!