Once you have made your decision to purchase and considered all the various costs involved, please ensure that you understand the payment terms as they may vary a little according to where and what you have decided to buy. Normally, by the time you decide, you will have already discussed the buying procedure a great deal with our staff.
It is normally at this stage that we will introduce you to an independent solicitor who will also, in addition to informing you about the payment terms, discuss the terms and conditions of the purchase and sale contract with you. Having made your decision, the first thing you will be asked for is a deposit to hold the property and ensure the price and conditions of the contract, this is standard and to your benefit. If you decide to buy a new property, the payment scheme can be, within reason, tailored to your comfort. As the developer is here solely to sell properties, you will find him reasonably flexible. If you have decided to buy a resale property, again the above will still apply. However, you will be dealing with an individual and therefore the terms may be as much to the vendor's benefit as they to your's. Always remember, we are here to see that whatever you decide is dealt with in a professional manner.
Most resale contracts will require that you leave a 10% deposit with the balance of the payment being paid on completion at a Notary's office. This normally takes one month from start to completion. New properties tend to be subject to a different payment scheme. This is because most new properties will be under construction and you will be making stage payments to the developer throughout the construction period.
In either case, buying resale or new, there will be additional expenses involved in the purchase:
IVA (Value Added Tax), Notary & registration fees, conveyancing, house insurance, wills and a few other items which all amount to approximately 10% of the purchase price. We always supply our customers with a comprehensive list of all the likely additional expenses relating to the purchase. We would also like to mention that bank guarantees are available to all our clients for each stage payment that is made. Ask our staff for more details and you will be happy to know that your money is always safe with these bank guarantees. Finance: You may require a mortgage to assist with the purchase of the property - not a problem, as we are constantly working with Spanish banks and arranging mortgages for our clients. Spanish banks normally lend up to 65% of the value of the property and the mortgage will run for a period of 10 years. Our staff will be happy to discuss all details regarding your own personal requirements on request.
Taxes and charges: In ALL cases there are taxes and charges applied to the purchase cost which have to be paid by the buyer. When buying new property I.V.A (Value Added Tax) is currently payable at 7%. In addition to this you will have the expenses of the Notary, registration fee, in some cases legal rights and plusvalia. If you decide on a resale property, then you will find that you are no longer paying I.V.A. but instead you will pay I.T.P. which is a transfer tax, currently 7%. As a general rule you should allow 10% of the purchase price to cover these expenses. Remember, we will give you a list of all your on-going expenses.
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%. |
