When purchasing a property in Spain, the normal process is to place a
3,000 Euro (around £2,000) deposit then a stage payment process for further balances. If you purchase a re-sale
property a 10% deposit is usually required within 7-10 days, with the balance payable upon completion.
Initial Deposit When you have found your ideal property a non-refundable holding deposit of £2,000 in the form
of a personal cheque will be required. This will guarantee removal of the property from the market. This deposit
forms part of a legal contract, which holds the price of the property as agreed at the time of paying the deposit
and guarantees you will not be affected by any future price increases.
This sum will be held by the Lawyer,
licensed property conveyancer or developer and the contract of sale will be drawn up for your agreement and signature.
Should you wish, further transactions can be completed in your absence, by granting Power of Attorney to your agent or
Lawyer.
Remaining balance / stage payments If you are purchasing a new build property that is not yet built,
or is in the process of being built, you will need to arrange for payment of your agreed stage payments.
These figures vary from development to development and builder to builder. It is not an exact science!
However, before you enter into any contract you will be informed of the dates and amounts of payment.
Typically though, after the initial £2,000 holding deposit a payment of between 30-50% will be required
within 30 days with, normally, the balance paid upon completion.
If you are purchasing a resale
property, or a new property that is already built, it is very different. After payment of the initial
£2,000 holding deposit the balance will be required normally within 30 days. (This is negotiable with the vendor).
For new build and re-sale, once your legal representative have finished the searches and investigations
and the monies are paid over, the title deeds are finalised and the property is yours, all legally signed and
secured.
Purchase Options
(1)
Cash Purchase
If you already have the full amount of property purchase price in cash in a deposit account within the UK.
Your only consideration will then be the exchange rates between the pound and euro when the various stage
payments are required. Various currency companies offer commercial rate transfers with minimal or no transfer
charge. Call us on 01572 821881 for more details on these companies.
(2)
Re-mortgage your UK property
You may decide to raise funds to purchase a
property abroad, by way of re-mortgaging your own property in the UK. With interest rates so low this is a
popular option. We can arrange for independent advice on this service, simply call us on 01572 821881 or
local rate 0845 226 3706 and well arrange an advisor to chat with you about your options.
(3)
Take a Spanish Mortgage
If you do not have the full cash funds available, and do not want to re-mortgage a property in the
UK then the only other option available to you will be take a mortgage with a Spanish bank. This is a very
easy option ... with Spanish banks offering non residents up to 70% Loan to Value. For more details call us
on 01572 821881 or local rate 0845 226 3706.
Further information on
buying your property safely
Download a PDF copy of ‘Overseas
Property Shop’ legal & Buyers Guide here
Google Books -
a good selection of books to purchase relating to buying a propetry in Spain are available at all good bookshops
or you can buy online here
The Complete Guide Buying Property in Spain: Buying, Renting, Letting and Selling
By Charles Davey
can be found here
Abogados.com
resource legal information (in Spanish)
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Important, basic legal advice
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As you have read all over our websites,
marketing material and promotions the most important piece of legal advice is ...
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