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Buying advice in Spain

Buying process: We will insist you use a lawyer for your purchase

When you have found your ideal home the first step is to reserve the property with a holding deposit (this is usually 3,000€ but is negotiable depending on circumstances). This is normally paid to the lawyer where possible and only handed over to the owner after the initial searches have been made. (we are one of the few who try to do this and it is solely for your protection and peace of mind) This deposit takes the property off the market. The owner cannot sell the property without refunding you twice the deposit. If you pay a 3,000€ holding deposit the owner will have to pay you 6,000€ back...it avoids gazzumping. If you pull out of the purchase you loose the 3,000€ (unless there has been a problem found with the paperwork) again using a good lawyer should prevent any of this.

Upon the payment of this 3,000€ any stipulations you want entered into the contract should be made, apart from the obvious ones, These are what we call "subject to clauses". i.e. subject to a mortgage being obtained, or subject to the furniture being included etc. Subject to clauses such as: debts on the property or motorways going through the living room are standard clauses in the contract, These are just extra clauses inserted into the contract which crop up from time to time.

If there are no paperwork problems the deposit will be released to the owner ASAP, remember the property is still for sale until the owner has received the deposit. Then a balance of the 10% (less the initial holding deposit) will be due within 14-21 days. It is normally at this time that the date will be set for completion of the purchase. This is normally up to 3 months, you will receive an "on or before" date: for example: If you pay your deposit on the 1st of March you will be expected to complete on or before the 1st of June but purchasing a house in Spain can be very quick and can literally be done in a matter of a couple of weeks if both parties agree.

That's basically it. Its very straight forward and we accompany you all the way, notary appointments, Nie number applications etc etc. It is a lot easier than buying in the UK and we are there to help you every step of the way.

If you are very busy you can even give the lawyer power of attorney to sign for you thus making it unnecessary for you to even attend the signing.

Before your visit:

Property in Spain can sell very quickly and if you are seriously looking to purchase this trip, I would advise:

Spanish Mortgage rates

Yes they are actually less than 2%!!

The figures quoted are based on the client obtaining a 70% mortgage although 80% is a lot more common now even for non residents.

With a Multi currency mortgage the rate is less than 2% and we have teamed up with a national Spanish Bank with over 1,000 branches who are offering this rate. There is no catch it is a genuine offer!! We can even offer the first two years interest only!! Payments quarterly! Nothiong to pay up front!

This means you can buy a 300,000 euro villa for less than 500€ per month on interest only.

The cheapest Villa in Javea to rent is around 1,000 euros per month (1,000 euros per week if you want to work hard at it) giving you a minimum profit of 500 euros per month for the first two years. Making buy to let property purchasing in Spain a must for any investor. Contact us for more information.

Multi-currency mortgages in Spain:

A multicurrency mortgage is flexible and attractive solution for property purchases or reformation: It allows the client to choose the currency with the lowest interest rate. Saving huge amounts on interest payments.
Being able to choose between the Swiss franc or the Japanese Yen to the euro can have amazing savings.
With a Yen mortgage for example. The first two years are interest only: 300,000€ mortgage is less than 500€ per month interest rate of less than 2%.

Multi currency mortgage conditions.

What you need:
Buyers must qualify for the loan, proving they have sufficient income to afford the monthly payments (max 40% of net official income), with the following documents:

Normal euro Interest only mortgages are becoming very popular in Spain with a lot of banks offering up to 30 years interest only mortgages. The calculation on our property display page is based on a 30% deposit with a term of 30 years and the mortgage rate at 2%. The vast majority of Spanish banks will only lend 70% of the purchase price and will only lend up to the age of 70, which is why our calculations are at that figure. The other point to remember is that a new build property will normally always gain a better valuation than a resale making it possible to obtain 80 or even 90% mortgage in some cases. We have actually sold new houses where the purchaser has only paid a 3,000€ deposit and the rest has been financed by the bank! No matter what your circumstances are we can normally obtain mortgages through our numerous financial contacts. more information on buying in Spain

There are several types of mortgage offers at the moment being advertised on the local radios here, even 100% mortgages. Be very careful! The banks here will not give 100% mortgages, these firms are offering this based on an overvaluation of the property and these 100% mortgages are available on a very limited number of houses. A few banks from time to time will have promotional offers and offer 80% and you need to shop around for the best deal. Some companies offering great Spanish mortgage rates also ask for an up front payment! I leave you to make up your own mind there. If you would like a mortgage quote of any kind please mail us.

Some useful spanish bank web sites:

Please remember: Purchasing a property in Spain is totally different than purchasing in the UK. Verbal agreements will not reserve a property. The owners will only take the property off the market with a holding deposit..

These are only guidelines and have been gathered from years of experience. It is up to the individual to choose which way they proceed with their purchase and make sure any subject to clauses have been added to the contract before they agree to hand over any monies.

 

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