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FAQs
At abovethearctic, we understand that buying a property abroad can sometimes be a bit daunting. That's why we want to make the process as easy as possible. Below we have compiled a list of questions we are often asked. However, if your question is not listed, please do not hesitate to email us direct at: sales@abovethearctic.com
Questions cover the following areas:
Rental
What is the expected rental income on the various properties? How many weeks of the year could I reasonably expect to rent the property out for?
Please contact us direct at abovethearctic to request a detailed breakdown of the rental yields on your preferred property.
Who is the local letting agent?
Our local letting agent is Ylläs Travel Service. For more information see www.Ylläs-travel-service.fi
How often will we receive the rental income?
Payments are made 7-21 days after the rental is completed.
Are we free to market the cabin ourselves? And if yes, how can we reserve the cabin as a private booking? Are there any restrictions on when we can use the cabin ourselves?
You are free to market the cabin yourselves. If you take any bookings privately, you just need to inform the agent in advance of when you wish to use the property for personal use/private booking. However, the more you use your property, the more restricted you rental income will be. A reasonable number of private bookings is 3-5 a year.
How is our property marketed?
Tour operators market their own campaigns abroad (Inghams etc).
In Finland YTS has a database of over 10,000 names that are marketed to each year to encourage reliable domestic bookings.
abovethearctic is also developing its own tourism sector which will concentrate on promoting cabins or apartments purchased through us. More details will be available to property owners later this year.
Can the property be marketed in advance of its completion?
Yes. Once confirmation of the purchase is received from the developer, the property can be marketed to ensure bookings for soon after completion.
How do YTS ensure a fair distribution of clients between similar cabins?
Rentals are distributed evenly between tour operator bookings (which are pretty much guaranteed each year) and bookings through YTS direct. In general, YTS work to a rota system to ensure fair distribution between cabins.
When a cabin is booked through YTS, how are we informed and when?
You can check the status of your cabin rentals online. YTS will provide you with a password so you can keep up to date.
How do the tour operator rentals work?
Operators block book in advance. Capacity at over the periods booked is normally 75-95%.
How are the rental rates calculated? Would we have any say over the pricing of our cabin with YTS?
Rates are based on the current market and the contracts with tour operators. You are welcome to put up your rates, however, this generally has a negative impact on demand.
What are the agent’s fees?
20%
What are the terms of the guaranteed rental?
The guaranteed rental applies to a small number of our properties. An example would be for the Yllästar apartments. A contract is agreed to pay rental income in installments every two months.
It has been mentioned that summer business is likely to increase over the next few years. What evidence is there to prove this?
YTS supplied the following figures for foreign tourists. All customers stayed with YTS, mostly booking one bedroom cabins in the Ylläs area:
Summer 2003: 450 visitors
Summer 2004: 750 visitors
Summer 2005: Over 1,500 visitors
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Insurance and Maintenance
Which companies supply contents insurance? Do I need to take out liability insurance?
Insurance is not included in the price, but we can recommend a Finnish company to deal with this for you, for under 100 € a year.
If the property and/or contents gets damaged by clients, is that covered in the insurance?
The letting agent will take care of any breakages.
Do YTS inspect and send condition reports on the condition of the properties?
Cabins are inspected each time they are cleaned after a rental has completed.
How much is the maintenance fee?
The charge is agreed by contract, and is normally about 20 € per unit/per month.
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Legal
How can I receive a copy of the legal memo?
Our Finnish solicitor is currently producing a new edition. Please contact us for his details and he will be able to send you a draft copy.
Is there a specific need for the solicitor in the buying process?
Finnish law protects you when purchasing a new property. However, if you were to buy a very old property it could be wise to obtain specialist advice from a Finnish surveyor. However, we recommend a Finnish solicitor based in London to oversee the buying process if you would require one. Please contact abovethearctic for details.
What contracts are there to sign?
There is no paperwork for new buyers. You only need to sign the bill of sale. The construction company completes all the paperwork for the client before obtaining the mortgage.
What is the Housing Corporation?
Basically, by purchasing a cabin that is part of a housing corporation, you are becoming an "owner" of the corporation. You own the property outright and can easily sell up in the future without affecting the value. This is completely normal practice in Finland, perhaps perceived as a little confusing by us Brits. One advantage to owning property through a corporation is that you do not need to worry about external maintenance of your property, such as lighting, parking and painting. There is a small annual fee to the corporation and this takes care of all these matters.
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Inspection Trips
What will we gain from an inspection trip?
Inspection trips enable the buyer to meet our developer and letting agent, tour the properties and explore Ylläs. It is a brilliant opportunity to ask all the difficult questions and receive prompt answers from the people who really know.
When are the Inspection Trips?
Inspection trips take place every few months. Please visit our Inspection Trips page for un updated list of dates or call 01277 824200. You can also visit the resort independently and we will arrange viewings of our properties while you're there.
How much is an inspection trip?
The cost is really dependant on the flights. You are welcome to research your own deals. Special accommodation rates are available. Three nights in a one bedroom cabin costs around £175, sleeping up to four people. We often have special offers for accommodation or flights, please visit our Inspection Trips page for more details.
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Property
Which properties are freehold?
Generally all properties, except apartments, are on freehold land.
Where are you properties? Are they close to a ski bus stop?
All of our developments are close to the ski bus top and central to the resorts. Most of our properties are in Akaslompolo. We are awaiting release of our next Levi development.
Are all the properties purchased off plan?
We have a number of developments in progress at the moment all at different stages.
What is the life span of a cabin?
There is no reason for the cabins not to last for several hundreds of years. The developments are well built and strong.
Do they appreciate in value?
The properties appreciate in value at roughly around 10% per year. According to “A Place in the Sun”, properties in Finland are expected to appreciate by up to 300% in the next 10 years. A property worth 100,000 € today is expected to be worth 383,000 € in 10 years time.
What is the history for resale of properties in Lapland, or is this an unknown phenomenon?
We have recently undertaken some resales, which have so far proved very successful. We do not foresee resale of Finnish property being a problem in the future.
How much is the furniture pack and what is included?
The furniture packs cost around 7-8,000 € and include everything you will need to get your property for rental. White goods are included in the price of your cabin. Flooring and furniture included in the property price can be hand-picked by yourself and upgraded should you wish to do so.
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Finance
What loans/mortgages are available?
50% euro loan is available from most Finnish banks, at competitive Euro prices. If you decide to buy off-plan, there is the opportunity to have a non-status loan, for approximately 50% at low interest rates of around 3.2%.
How do the staged payments work?
At each stage of the build you pay an installment (this forms the down payment). Each payment is matched by the bank. Actual mortgage repayments will not begin until maybe 6 months – 1 year after the completion of the property.
What taxes/fees must I pay?
Property tax (similar to stamp duty) is included in the prices of some of our properties. It is about 1.6% on new properties.
The local marketing fee is 128 € per annum.
Local property taxes are very low.
You will also be taxed on any profits you make by renting your property in Finland. However, you are able to offset all your expenses including loan interest payments.
Please visit www.vero.fi for more information on taxes.
How can I get a VAT refund?
Tax and VAT return for the cabin investors will take place 6 months after transfer of the apartment. Before that the VAT-man must state that the apartment is in taxable use. However, you must register for the VAT refund no later than six months after the handover. Abovethearctic is in the process of purchasing a two bedroom Teerentie II cabin. We are currently registering for the VAT refund. Feel free to call Colin for more details about the process.
What standard utility charges may I expect to see?
In addition to the housing corporation charges, the only extra service you should pay for would be electricity.
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Finland & Ylläs
What is the economy like in Lapland?
The economy is particularly good, somewhat better than several other European countries. It is safe to buy and interest rates rarely fluctuate due to the stability of the economy.
Are there any local area development plans to be implemented which might add to the growth of the area?
This is controlled by the Kolari Municipality. We have been told that there is strong feeling with the village locals that the area is to keep its character and not become over commercialised.
What levels of activity are there during the spring and summer months in the Ylläs area?
Visit www.Ylläs.fi for more information
We know that Ylläs is extremely popular for canoeing, fishing, hiking (start at the visitor's centre for a great route), mountain biking and cycling. White water rafting, hot air ballooning, Icelandic pony trekking, Land Rover safaris are also available. You can also swim in the lake as it's surprisingly warm, changing huts are available and there is a beach to relax on. It's certainly the location to enjoy the great outdoors. Many festivals also take place including the infamous midsummer festival in June and various music events.
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