You may find that the buying procedure in Spain is a little different from what you are used to in your own country.
It is always a good move to ensure that you are fully aware of the terms and conditions of the contract before you sign as, once signed, the contract is legal and any deposit paid will be lost if you change your mind at a later stage.
Always deal with a reputable agency and always use the services of a Spanish lawyer. Please remember, that when buying a property in Spain you must always use a local Spanish lawyer.
The normal procedure after finding a property you hope to purchase is to determine the full price. At this point, theterms of the purchase and sale contract can be agreed and the amount of deposit can be decided upon. This will depend on whether you are buying a new property directly from the developer or a resale. Normally at this stage a visit to the lawyer is recommended. He or she will be able to vet the contract and take up contact with the seller. Once the contract is signed and the deposit paid, all terms and conditions, including the price, are fixed.
We will supply you with a list of your likely in-going and on-going expenses of the purchase. Naturally your lawyer is there to answer all of your questions as well. Always be sure that you are aware of your payment schedule, when the amounts have to be paid and how they will be paid. You should also make provisions for these payments, allowing for the time it takes for funds to be transferred to Spain. Transfers normally take 3 to 5 days. Again, we will make sure that, before you return home, you are fully aware of all aspects of the purchase. We will also take the opportunity to assist you in opening a bank account as this is necessary, first, to purchase a property in Spain and, secondly, to maintain your home once you have purchased.
Mortgage products
Type of Loan: Repayment or interest-only for purchase, remortgage or capital raising.
Purchaser: Individuals or companies.
Individuals or companies.
Minimum loan: €50,000.
€50,000.
Maximum loan: None, but must not exceed 80% of the mortgage valuation or 100% of purchase price (whichever is the higher).
None, but must not exceed 80% of the mortgage valuation or 100% of purchase price (whichever is the higher).
Term: 5 to 30 years - up to age 70.
5 to 30 years - up to age 70.
Currency: Normally Euros, but Sterling and other major currencies are available.
Normally Euros, but Sterling and other major currencies are available.
Interest rates: Will vary from lender to lender - typically linked to EURIBOR. Fixed rates are available, typically for the first year of the mortgage.
Will vary from lender to lender - typically linked to EURIBOR. Fixed rates are available, typically for the first year of the mortgage.
Fees: Spanish bank fees vary but are typically around 1% of the mortgage amount. You should also allow between 250€ and 500€ for the mortgage valuation; stamp duty of 1.8% of the mortgage amount; and notary and registration fees of around 0.5% of the amount borrowed. Your lawyer’s fees are likely to be around 1%.
Spanish bank fees vary but are typically around 1% of the mortgage amount. You should also allow between 250€ and 500€ for the mortgage valuation; stamp duty of 1.8% of the mortgage amount; and notary and registration fees of around 0.5% of the amount borrowed. Your lawyer’s fees are likely to be around 1%.
Repayment or interest-only for purchase, remortgage or capital raising. Individuals or companies. €50,000. None, but must not exceed 80% of the mortgage valuation or 100% of purchase price (whichever is the higher). 5 to 30 years - up to age 70. Normally Euros, but Sterling and other major currencies are available. Will vary from lender to lender - typically linked to EURIBOR. Fixed rates are available, typically for the first year of the mortgage. Spanish bank fees vary but are typically around 1% of the mortgage amount. You should also allow between 250€ and 500€ for the mortgage valuation; stamp duty of 1.8% of the mortgage amount; and notary and registration fees of around 0.5% of the amount borrowed. Your lawyer’s fees are likely to be around 1%. |
