Trying to buy the School (part 3)

The yellow border marks the boundary

I drove down to Stanstead the morning of my flight and made it with plenty of time to spare despite several accidents on the M6. The flight was simple and I made it to E's place in time for a beer and chat before hitting the sack with much excitement about the next day.

That night I lay listening to the crickets making a racket in the garden and was unable to sleep for more than a couple of hours at a time; I kept waking up feeling so nervous and excited. Finally it was time to get out of bed and I sat outside drinking my brew in the sun and the peace and quiet and the reality of what I was about to do hit home.

In less than three hours, all things going well, I would be the owner of the School. There was no going back, no changing minds or backing out; this thing was really happening.

What an exciting thought.

The view from the balcony of the School

We went down to the local town and met up with Georgi and his wife, and his little daughter, at a cafe just down the road from the council buildings. I had a Tree-Etno (three in one coffee thing from Nescafe, and teh only non alcoholic drink I have worked out I like over here....) while waiting for the time to roll around and then it was upon us.

Georgi had previously said that E would not be allowed to join me in the auction as they limited the numbers but we made an executive decision that she should come with and if she wasn't allowed into the room then fine, but we would make them make that clear rather than not even trying.

The building the auction took place in

First we went to the first floor and there myself and E sat on the sofa while Georgi stalked about looking in control and talking to people to find out where the auction was at. I, meanwhile, had shut my emotions down; I was too tense and just wanted to try and pay attention to everything which happened without being too uptight and excited.

At some unseen signal we moved up to the second floor and once again were sat on the sofa there waiting. Another chap came up the stairs; was he going to be bidding against us? Georgi went after him to find out and no, he was there for another purpose. Then, in a rush, a harassed looking woman appeared and hustled us down a corridor and into a room, appearing to be suggesting that we had kept them waiting.

The room was set up as a normal office; a desk down the middle with chairs both sides and computers at each end; we were told to sit on the right hand side and E was allowed in with out a question. After a couple of minutes of waiting a few more people from the council arrived and they all gathered on the other side of the desk; there were about five of them, and finally another man came in and sat on OUR side of the desk. Oh no, was this man going to bid against us?

Georgi the agent on the stairs at the School

With no ceremony one of the council representatives started reading aloud from a document and I caught enough words to know he was reading a description of my school. Georgi turned to me and smiled and said "this is it". The reading of the deeds was finished and the man picked up an envelope and, with a little pause and smile at me, opened it, read it, and said (in Bulgarian) "Chestito".

It took both Georgi and E telling me "he just said Congratulations so it is yours" before I fully realised what was going on; all that remained was Georgi signing a few bits of paperwork, them looking at my passport to confirm that I was the person detailed on the bid documentation, and it was done.

I had won the School!

In less than five minutes the other bidder had also had his envelope opened and accepted for a different property and we were walking out of the front door. He came after us and, in very good English, congratulated us on the purchase. It turned out he had been thinking of buying it, but had decided to go for a different place. What good luck as a counter bid would have caused the price to go up by 10% each time and my contract with Georgi was only for the initial bid amount.

Georgi then drove us up to the school to have a look around at what was now mine. It was a dramatic feeling to walk around the land talking on the phone to my dad telling him what had happened. Helpfully we also made contact with both neighbours and were able to explain to them that they had to remove the hay which was stored inside the school by March next year (not going to happen I don't think) and the other neighbour could have use of the long green wooden building until March also, in exchange for them keeping an eye on the place for me.

Hay piled up in one of the rooms at the School

My head was a little bit of a mess (to say the least) but I managed to make a couple of quick phone calls to loved ones to give them the news, sent a couple of tweets, and then get lost twice going for lunch at a lovely spot on the way back to E's.

A lovely lunch, and a couple of beers, later we headed on back to hers where I sat on the veranda on my own, drinking more beer, and finally allowed the enormity of the occurrence to sink in. I had done it and could look forward with concrete excitement to sitting on my own veranda (a balcony over the flat roof part of the school) within a year of now. I had a few tears in my eyes and shivers were running up and down my back.

That night I barely slept; I had a really long day planned the next day which involved getting back to England, picking my best mate up and driving all the way to Oldham without a break then, after a few hours of sleep, onwards up to the Islay ferry. Thinking this I actually went to bed at about 9pm but I woke at 3am and could not drop back off, even though I felt tired and my mind wasn't racing that much. I think it was just the adrenalin. And who could blame me.

I had achieved the first step of many. My very own Bulgarian Retreat.

Trying to buy the School (part 2)

Looking down at the School from the top of the land

Where was I? Oh yes, I had decided that taking the pressure off my travelling plans, and simplify the auction process, I would give Georgi power of attorney to open a bank account, and carry through the purchase process to completion.

Rather than fly over to Bulgaria to get a power of attorney done there I chose to see a notary in the UK and send it to them. This was not as simple as it should have been, though it wasn't too bad in the end. First of all I had to find a notary to do the work for me and the first one I spoke to seemed almost offended that I had rung up and disturbed his nice peaceful day. Fortunately the next guy was super helpful and I made the appointment very quickly after that.

Georgi had sent across the amended contract and a power of attorney, each of which had an English version and a Bulgarian translation. This was signed in the presence of my notary, stamped and then sent off to get an Apostile (basically an official stamp that proves the notary has the right to witness and approve the document) which was applied at the embassy in London. It was not cheap for what was basically 30 minutes in an office and then a courier to and from London.

After a week the documents arrived back and, with a quick scan to provide myself with a copy, they were handed to a courier within 30 mins for their fast delivery back to Georgi. Because of the time taken discussing which method to use we were starting to run out of time as he would need to open an account and could not do this without the power of attorney.

My documents, flying

As is my wont I was keeping on top of the progress and chasing the agent regarding the auction date; I needed to ensure that I could make it over as I would be very disappointed to miss such an important event. The date was delayed, however, as the Mayor had gone on holiday and no date could be set until her got back.

Finally the Obshtina set a date, after several false starts caused by various people going on holiday, elections taking place, national holidays and just basic "bulgarian time" administration processes.

The date of my auction would be 22nd May 2012.

My travelling was typically constrained; I booked flights out on Monday 21st and to return on Thursday 23rd (and, touching on other parts of my life, I had a ferry to Islay booked on Friday 24th early morning to get over there for the Whisky festival; which would either be a celebration or a commiseration based on the outcome of the auction).

Unfortunately, again due to slow processes in Bulgaria, we had run out of time to open an account and Georgi asked me to send the initial 20% deposit into his own account. This caused me some soul searching but after much thought, and talking to several people for advice, I decided to go ahead and do this. Fortunately I was able to trust him however this could all have been avoided by me having opened a Bulgarian account earlier in the process and having money sitting there ready and waiting and only requiring an internal transfer within Bulgaria, not the delay of an international money transfer.

Money with wings. Oh yes

I won't go into the pain which Santander made my transfer (as they had the wrong telephone number on one of their systems and they almost refused to do the transfer) but the money arrived fine and the deposit was paid.

All that was left now was for the actual auction to take place...

Would I win!

Trying to buy the School (part 1)

Nearly 15 months after making the decision that moving to Bulgaria was the best thing we could do, we were finally at a point where a suitable location had been found. This was fortuitous as I had been thinking that if the House Hunting Trip to End All House Hunting Trips had not been successful, we would have had to think again.

Me as a confused person

It is a challenging process, trying to buy a house, even at the best of times and it is far far harder when you don't live in the country you are trying to buy in and can only visit for two days at a time every couple of months. I had made the decision that I was not going to do another house hunting trip (as they cost money which could go into the pot to be spent on any purchase) and would change tack by still going at the same time, but renting so all day every day could be spent just house hunting.

Thank goodness for The School as this plan (while sensible) did not appeal at all.

Upon arriving back in the country and making the decision to go for the school the first thing I had to wait for was the decision on the new minimum price that the Obshtina was setting. At the same time as requesting this I also asked for the plans (Skitza, mainly) so I could prove to myself that I was not being led up the garden path with all this.

There is something a little uncertain about starting a process like this; while everything seems OK you can never be 100% sure that the person you are dealing with is not trying to con you in some way. Asking for documentation is the first of a few things I would suggest that you always do before parting with any money at all as, if you send cash and then they don't have the docs, the likelihood is you will not get the money back.

Hey!!! Give me my money back!

In my case Georgi responded within a day with the documents I asked for, and also sent me a really helpful and clear explanation of the bidding process. In this I can say that at every stage of the process Georgi went above and beyond to explain anything I asked him, replying quickly and with clear answers. He was excellent.

Below (and forgive the length of it) is Georgi's email in full explaining the process.

"I am sorry you did not have time when we viewed the property so I could explain you how it works with government auctions but I will do my best to do that via emails!

It is quite complicated and different procedure than normal open auctions in Europe or EBay and to understand all details you need to know Bulgarian laws.

All municipalities in Bulgaria have a lot of properties as agriculture land, medows, aparthments, shops, schools etc and day set auctions for them on monthly basis or when price expires.

The vote of the new price for that property has been planned before and it has nothing with our viewing last week.

We are just lucky that happened now, otherwise takes about two months to get up to date price.

How they form the price:

Municipality hires independent surveyor who comes up with report and price.

For abandoned buildings usually that is not market price and it is tax evaluation price (The price you pay annual council tax)

This price is valid for six months and according to the law the municipality cannot sell the property under tax evaluated price.

After six months they have right to change it after new survey.

This price is starting price but also is reserve price and the bidder cannot bid below that.

Open auctions are held in front of commission of 8-10 council members and any one interested needs to prepare a list of about 15 documents required to take part in the auction.

Also they have mandatory bid of 10 % hen auction start and every next bid is 10 %.

If the bidder is only one to the starting/reserve price is added this 10 % and that is winning/sale price.

That is just basic explanation of the procedure and I hope you get it.

Up to date information about that property.

City council has already voted new price yesterday and now there is 14 days period for objections.

New price is ****** Pounds.

That includes:

Price of the property (All buildings and the land)
10 % mandatory bid.
All transfer and notary fees.
Our agency commission to represent you and act of your behalf.

That is the final price you will pay if you decide to go ahead.

To entry the auction you need to pay for entry documents (That also built in the price) and prepare all document.

We do that for you.

Deposit required is 20 % or ******* Pounds.

If you don't win this deposit will be returned.

Auction date will be set after 20th of April.

After winning the auction remaining balanced is required within 14 days.

I also attach the plan/sketch of the property.

Municipality doesn't have any floor plans and I thing the best way is to ask your friend to draw a hand made one for you.

There is no problem builders to go there now as the price is already voted.

If you think is a good idea you can send me the measurement and their price for the work so I can show them to my master builder and see if the work it's not overpriced!

I think that is all for the moment mate."

So there it was and the price was substantially less than originally requested and (with the thought that the renovation work, while extensive, was not quite as total as all the other houses that we had viewed ie needing completely pulling down and rebuilding again) it seemed like a no brainer that we had to go ahead with this.

Further emails confirmed that after 14 days the auction date would be set, you have to be a Bulgarian citizen to bid on Government auctions so Georgi would act as my representative (though everything would be in my name) and I would have to have paid the deposit at least 7 days before the auction occurred.

Georgi sent me a contract to check through which covered the purchase of the property (including in it the full amount agreed) and was very flexible with regard to the suggestions I made for changes (including adding a time limit to the repayment clause).

Contracts need signing

Once all this was agreed there was another decision to make; would I give Georgi power of attorney to act fully as my representative (opening a bank account for me to make the payments to, signing all the documentation at the auction and basically meaning that my physical presence was not required at all) or would I go to Bulgaria for an extended visit to do all these things myself? My decision was made by the uncertainty around the speed of the process; I would give Georgi power of attorney but would also do my best to be present at the auction.

I think I will leave this update off here, as this is getting ridiculously long, and will continue in another post.

Thanks for reading.