Purchase

The purchase of a property involves a number of purchase expenses. These are as follows: Legal Fees, Notary Fees, and Registry Fees and IVA (VAT). The total of the above will amount to 10 - 11% of the purchase price.

Having found and agreed the purchase price a Contract will be prepared by the lawyers or lawyer. In Spain there is no restriction on the same Lawyer representing both parties. The Contract will contain the main points of the purchase such as the price, the property details, an inventory (if applicable) and a completion date.

The contract is a legally binding document and it is usual that purchaser will pay 10% on signing.

If a mortgage is required approval will have been granted prior to signing.

The time required to complete the purchase transaction is determined by the circumstances of the buyer and seller. If both parties and the cash is available the purchase could be completed within a matter of days.
In some cases, by mutual agreement, a completion of several months is agreed. However, in most cases the completion usually takes four to six weeks.

As a potential Spanish property owner it is now mandatory that you obtain an N.I.E.
This is a Spanish registration number and is obtained through the police station. The procedure is simple and your agent or Lawyer will assist.

At the point of completion, if there is a mortgage involved, the parties to be named on the Deed are required to be present or have in place a Power of Attorney in favour of another person.

If there is no mortgage involved and the purchaser cannot be present the lawyer can sign on his behalf to be ratified at a later date.

Sales

The sale of a property involves costs and these should be accurately determined, relative to each seller's circumstances, in order to establish what a gross figure will return net to the seller. The types of expenses liable to sellers are as follows, cancellation of mortgage, Capital Gains tax, Plus Valia Tax, Legal Fee, Agents Fee.
All of the above will differ according to the circumstances of the property and the seller.
The seller will be required to supply to the Lawyer representing the purchaser a copy of the Deed (Esritura) and copies of receipts for items such as Rates, Basura, Electricity etc. and also a statement (Certificate) from the administrator indicating the situation with regards to Community Fees.

At the point of completion all parties stated on the Escritura require to be present at the Notary. If any or all of the parties cannot be present they can be represented by a person holding a Spanish Notarised Power of Attorney.

This Power of Attorney can be granted in Spain at any point prior to completion and simply involves a visit to a Spanish notary.

If any or all of the parties cannot be in Spain for completion a Power of Attorney can be raised abroad. This is a little more complicated and time consuming as the document requires to be sent (in Spanish) to a Notary in country of residence of the seller. After being signed it is then sent to the Home office for Apostile and finally returned to Spain by special delivery.

From the preceding it can be seen the sale of a property should be planned as far ahead as possible. This will save time and money and eliminate a great deal of inconvenience.

We will be pleased to evaluate your circumstances at no charge.

Mortgages

If funding is required against the purchase of Spanish property consideration must be given to Equity Release on an existing property in your home country against the application for a Spanish mortgage. One could be more favourable than the other especially with regards to set-up charges.

We will only deal here with the Spanish mortgage.

The requirements for a Spanish mortgage are very simple and are as follows:

Proof of Income

If the applicants are employed a copy of the P60 of each is sufficient.

If the applicant is self employed a copy of the company accounts for the previous year or if the accounts of the company are prepared by a Chartered Accountant a letter indicating gross and net income will be accepted.

If the husband and wife fall into different employment categories a combination of the above is sufficient.

The interest rate prevailing at the point of purchase is usually fixed for the first year and variable thereafter at 1.50% above Euribor. (European Interbank Offer Rate). The joint income of husband and wife can be taken into consideration.

The period of the mortgage will depend on the age of the applicants and the amount to be borrowed. Usually up to the age of 70 is accepted.

No medical is required.

Bank Reference

A reference from your bank simply indicating that you handle affairs in an orderly manner.

Property Valuation

A valuation requires to be carried out on the property and it is on this figure that the loan amount will be based. Up to a maximum of 70% of the valuation will be available.

Cash can usually be available within two weeks.

Legal Services

We have excellent legal backup available to our clients at much lower than the normal cost.

Property Conveyancing

The purchase of a Spanish property is usually your first contact with a Spanish abogado (lawyer). He will conduct a search, which will include the Land Registry, the Community, Tax Authorities and all the service departments such as Electricity, Telephone, and Water etc. to establish any outstanding debts.

If you have confidence in the agent you are dealing with it would be convenient to use his abogado. If not make some enquiries and select someone who comes recommended.

There are other areas, which would require the services of an abogado, which are as follows:

Will

The making of a Spanish Will is a very simple but very important task and should be done as soon as possible after the purchase. The Spanish authorities will accept the wishes of an existing Will in an overseas country. However, the process is lengthy and will cost more than setting up a Spanish Will.

Power of Attorney

The majority of properties are purchased in joint names e.g. husband and wife. When it comes to selling the property both parties require to be present at the Notary. This may not always prove convenient due to employment or health commitments. As a result it is common that both parties grant Power of Attorney giving each other power to sign in the absence of the other. This means that only one of the parties requires to be present. The Power of Attorney could of course be given to the abogado, in which case neither of the parties are required to be present at the Notary.

The cost of a Power of Attorney will be cheaper than a trip to Spain.

Spanish Residency

If your immediate or eventual aim is to become resident and possible set up a Spanish company your abogado will be in a position to advise on the procedures and requirements.

Good legal advise will save you time and money.
We can provide it.

Property Management

We are in a position to provide all the after sales services likely to be required such as Property Inspections, key holding, Maintenance, Cleaning and Laundry, Garden and Pool care, Rentals etc. etc.

Having been in the property business on the Costa del Sol since the early eighties we have at our disposal a very dependable team covering all the areas mentioned above.

We can tailor a package to suit your own personal requirements and at a very reasonable rates.

Your account with ourselves would be managed on a professional basis with monthly statements issued.

In addition to the above please bear in mind that we will also be available to advise on and assist with any problems which may arise during your own or your family/friends visits to Spain.

Property Finders
The peace of mind of your property being in capable hands

Rentals

We will be pleased to place your property on our Rentals Register. Please contact us and we will be pleased to advise on all matters relating to the preparation of your property for the rentals market.

Our properties are marketed through the web, prominent overseas rental magazines and also overseas agents.

If you wish to market your own property we will be pleased to provide all the necessary support services.

We always require additional properties.

Insurance

We are insurance agents and can provide cover for Buildings, Contents, Car etc.

If there is a mortgage involved it is not uncommon for the bank to insist in placing the Buildings policy with themselves. This is to ensure that cover does not lapse without their knowledge.

When selecting an agent it is important to select one who will assist you in the event of a claim and not simply give you a claims form.

If a claim is made, quotes must be prepared and submitted for the cost of repairs or replacements and someone must be available to deal with the Loss Adjuster when he comes to inspect the damage. Usually they only speak Spanish.

Care must also be taken as to the cover put in place as there can be gaps as to what is covered by the Buildings policy and what is covered by the Contents policy.

We advise all our clients on the type of cover required and also deal with all matters relating to quotes and Loss Adjusters.

At no extra charge