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Admit it, you just got back from holiday, but you can’t stop thinking
about Spain and how great it would be to have your own little place that overlooks that beautiful country.
Well you are in luck. Buying Spanish property is as easy as ever and owning your own holiday home doesn’t have to
just be a dream. Properties today are more affordable and are being recognized as a sound investment. Properties in Almeria
are among the most affordable in Spain giving their owners an amazing valuable asset.
Owning a holiday home is not
only a way for you and your family to enjoy a Spanish holiday in the property that you own, but it is also a great way to
invest your money. Holiday homes can be purchased in a variety different ways. The type of property that you purchase can
range from a beautiful home on the Spanish coast or if your budget doesn’t allow for the purchase of an entire home,
you can look into the purchase of a townhouse or condominium. Both may be smaller, but will still put you at the centre of
beautiful scenery and the holiday atmosphere you are looking for.
According to Jan Jackson, the Sales and Financing
Director for www.overseaspropertyshop.com, owning your own holiday home is
incredibly easy and with the right property partner at your side you can own a holiday home in as little time as possible.
Enjoy an inland villa or countryside apartment for a quiet more relaxing environment. A country like Spain with so much to
offer will only continue to rise in the world of holiday home real estate meaning the sooner you buy Spanish property the
more return you will get on your investment.
‘Frequently Asked Questions’
Firstly and most importantly we insist that you have full legal representation on your property
purchase - this is one of the most important parts, anyone can buy a property, but to make sure your investment is safe always
have the expert knowledge of a solicitor on hand.
We hear the stories and
see the television programs all the time, and the reason why most clients have problems is that they have not had the correct
legal advice. Buying a property in Spain is different to the UK, you wouldn’t buy a home here without legal representation!
So please take advice, and spend that 1%.
We are happy to provide you with information on legal representatives in all the
areas we cover.
Back to the header ... The Purchase Procedures F.A.Q
Firstly you should decide how you would buy your property. We have listed 3 popular options below.
1.
Buy for cash
- A straightforward option, buying the property with cash that you have in the UK
2.
Re-mortgage
- your main home to raise the cash - again, a straight forward option and one that doesn't involve you having to deal
with any Spanish banks, but you will probably find that the interest rates charged by banks and building societies in other
countries may be higher than interest rates in Spain. Bear in mind the mortgage warning "Your home may be repossessed
if you do not keep up repayments on your mortgage". You may be putting your main home at risk for the sake of your
holiday home.
3. Finance
- your property with a mortgage
from a Spanish bank or mortgage provider.
Prepare yourself for the initial costs
which range from 1 to 2 % - Whether you are buying for cash or with a mortgage there are some costs you are going to have
to fund yourself. This is a popular way of purchasing, and have listed below lots of information on this.
The steps to buying a property in Spain
PAYMENTS & FUNDING THE PURCHASE
Deposits
- For new properties under construction the payment terms are made in stage payments with usually a 30 or 40% payment required
after 30 days of the contract signing, with the balance on completion. There are a few builders which still have a stagger style
payment structure a good example of this payment structure is a 3,000€
deposit, 30% 30 days later, 30% on wall construction, 30% on roof with the balance on completion.
Purchase Costs
- For all property and land you will pay a 7% of the purchase price, which is a property tax that goes to the Spanish Treasury.
In addition you will have Notary fees and land/property registration fee, which varies according to the purchase price of the
property. You can choose your own Notary.
The costs of a mortgage
- Normally, based on their valuation on the property, Spanish banks will lend between 60% and 70% to non-residents and 70%
and 90% to residents. Banks will send a valuer to assess the value of the property, the cost of this is included in the
charges made by the bank for the mortgage application, which varies according to the purchase price of the property allow
about 1% but banks vary in their charges and can often be negotiated. Once you have applied for the mortgage you will need
funds to cover the cost of the bank charges.
Qualifying for a mortgage
- Sufficient income to service your mortgage, Life assurance to cover the terms of your mortgage ... banks will insist upon
this,.
Working out your price range
If you need a mortgage
to fund your property, you should establish what price range you should be looking at and whether you have enough cash funds
for the deposit and legal fees and that your income is sufficient to afford the monthly cost of your Spanish mortgage.
You should now be seeking professional advice, about the basic lending criteria and the various options and mortgage products
available to you.
A few options
Go direct to the Spanish banks and mortgage providers - the majority have English speaking staff, others do not -
which may cause you difficulties. They all have their own lending criteria - how much they will lend you, the term of
the mortgage, what mortgage products they offer and how much they will charge for their arrangement fees.
Use the services of an established mortgage broker, who will advise you about how much you can borrow and the mortgage
products which will best suit your circumstances. Your mortgage broker may save you some time and will know which lenders to approach on your behalf, whether it's dependent on the amount of deposit you have available or whether certain conditions should be taken into consideration, and will provide you with quotations from the lenders who are most suitable for you. Throughout the mortgage procedure your mortgage broker will liaise between you and the lender - very useful if your language skills are not that good. Mortgage brokers who are registered in Spain receive their commission directly from the lender and generally do not charge you a fee - but you should check - it is not always the case.
We offer a mortgage service in Spain with a professional legal advisor and will offer a service similar to that of a mortgage broker.
What’s needed to apply for a Spanish Mortgage - Banks will ask for pay slips if you are an employee or one or two years accounts if you are self-employed and a tax declaration on both cases from your country of tax residence (P60), also copies of your passports are required and sometimes passport photographs are needed with the application ... It is fairly easy to arrange a mortgage in Spain, most banks will give you a decision in principle when you meet them, or we can arrange this on your behalf though our legal advisor.
Life assurance
It is a requirement that all mortgages in Spain are covered by life assurance. Many of the Spanish lenders insist that you use their policies and that it covers all the terms of your mortgage. Some lenders have different policies and insist that full disability cover is included as well as life cover.
When your file has been thoroughly checked and approved by an underwriter, the lender will request a valuation of the property. The valuation is not a survey. It is merely a valuation agreeing that what you are paying for the property and the amount the lender is prepared to lend is acceptable.
Should you be declined mortgage funds, either because of financial information, medical underwriting or the unsuitability of the property, the lender will advise you and issue you with a letter which you can use as your proof to have your deposit refunded to you as agreed in the Option de Compra let out clause.
Subject to everything about your mortgage application being acceptable, a mortgage offer (hipoteca) will be issued to you.
Some lenders will want their arrangement fee paid on acceptance of their mortgage offer and your life assurance policy will by put on risk from the date you signed the mortgage offer.
When the lender sends you the mortgage offer they also inform us in Spain of the details of the mortgage.
A Completion date should be concluded within 3 months of receipt of your acceptance to the mortgage offer.
Completion day
You can now arrange a time and date for completion to take place. It is your responsibility to instruct the Notary to request the mortgage funds from the lender. Your legal representative can do this for you on your behalf.
Once you know the date you will be completing on your property purchase you will need to make sure that your Spanish bank account is open and funds are being transferred into it in time for the completion date and arrange for buildings insurance to be on risk from the date of completion. You will need to provide details of the insurance policy.
If you think you may be unable to attend the meeting to sign the Escritura (final deed of sale) you can give a trusted person or friend a power of attorney (a poder) which authorises them to act on your behalf if you unable to attend the actual signing. We suggest that you instruct your lawyer to do this.
The Escritura is signed by you (the buyer), the vendor and one Notary.
Once the Escritura has been signed and witnessed you will be requested to pay all the taxes, land registry fees and mortgage fees (if applicable).
A few months later you will receive a certificate informing you that the title has been registered. The original title deed is returned to the Notary and you can collect the deeds and the Notary is able to make authorised copies.
We hope this information is helpful to you ...
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Before we leave you to search for that dream property follow the simple steps below.
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Think carefully about the location and type of the property depending on whether you plan for it to be your main residence,
second home, holiday home to be let out on occasion or a property to be let as an investment for the future.
Make a list of the important elements - the purchase price, the overall size and number of rooms, is a sotanos
(cellar) or garage essential, would you prefer a garden, terrace or balcony, perhaps a top floor apartment with
roof solarium etc ... Having a good idea of the style and size of property before viewing is important, always
have an open mind ... what’s nice in a picture is not always the case when you view them in Spain!
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Overseas Property Shop•31 High Street East•Uppingham•Rutland•LE15 9PY•01572 821881•0845 226 3706
www.almeriaproperties.co.uk ... A dedicated website for Costa Almeria property.
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