Guernsey has a so-called ‘two-tier’ housing system, which divides properties into ‘Open Market’ and ‘Local Market’. The majority of houses on the island are classed as Local Market and thus can only be occupied by locally-qualified residents or those holding a States of Guernsey licence holder who have come to work in Guernsey and are employed in roles whereby there is a shortage of suitable ‘local’ candidates. House prices on the island, like elsewhere have continued to rise over recent years, with the average house price in Guernsey is now in excess of £500,000.

There are just over 1600 Open Market properties in Guernsey, these are generally larger properties, commanding higher prices, the market for these tends to be private individuals looking to relocate to Guernsey.

The process of buying a property

With competition high in Guernsey for property it is hugely important that Home Buyers are in a position to move quickly. Having an idea that you have finance available to you, by way of a principle offer from your lender, at what rate and what conditions with undoubtedly improve your chances of buying the property. When looking at options for Guernsey home loan mortgages, it is important to speak to specialists, Guernsey property finance can be hugely complex, the team at CI Finance are here to help and guide you through the whole process, we will help you understand what finance options you have available and guide you in making make a decision safe in the knowledge that you have the best rates and terms to choose from.

Have the right team and paperwork in place

So you have your finance in place and found your home and the price has been agreed, you then need to appoint an Advocate to act on your behalf. 

Normally a mortgage lender will instruct a surveyor for valuation and general condition purposes, it may be advisable to appoint an alternative survey that will provide structural surveys; no-one wants those unforeseen costs for major unexpected works. 

Finally make sure you have all the legal paperwork ready. You will need:

• A valid Residential qualification under the Housing (Control of Occupation) Guernsey Law 1994
• Comprehensive buildings insurance in place from the moment you buy your home
• Check your Finance offer – it might require you to have life insurance policies in place

And don’t forget you will be given an ‘operative date’ you will normally be required to place a non-refundable 10% deposit of the full purchase price – you must have funds in place for this to avoid delays.