The Buying Process in Spain
Your arrival in Spain signifies the end of your planning and the beginning of the exciting hunt for your dream home. We hope that you arrive with an open mind as house hunting 'Spanish style' can provide some unexpected surprises.
Our expert staff will have narrowed the Spanish property search down and your agent will be eager to show you those Spanish properties for sale that best match your requirements. We recommend that you look at a few Spanish properties and make comparisons to ensure that when you make your decision it is the right one. With so much property for sale in Spain we want to find the best property that we can within your budget and the more houses you see, the more sure you will be when we do find your dream home.
Deposit payment can be made by credit card or bank transfer and will be held in your name. We don’t recommend that you carry cash in your pocket but do ensure that this sum is readily available as a delay could mean your dream becoming another persons reality. Payment of this sum fixes the price of your Spanish dream home, confirms your intention to buy and means that the property is taken off the market and reserved for you.and will stop you getting gazumped.
Do be aware that you will need to pay taxes and fees amounting to about 10 or 11 per cent of the price of your property when you buy in Spain. This should be considered when calculating your budget.
Obtaining a mortgage
We recommend Intenational Mortgage Solutions, a top quality Mortgage Broker for Spanish Mortgages
If you are buying an off-plan property the developer may offer a mortgage with very favourable terms and conditions.
It is important to select the mortgage that is right for you, taking into consideration your personal circumstances. It might be that you prefer to raise capital in your home country before arriving in Spain. Do let us know if you require a Spanish mortgage so that we can advise you prior to your departure to bring with you all the necessary documentation and receive the expert advice you need.
If you require a mortgage and prefer to use a Spanish lender you can take a mortgage over 10 – 30 years depending on your age. Generally your repayments must not exceed 35% of your net monthly income or joint monthly income if two people are applying. costs involved can amount to 3 – 4 per cent of the amount you are borrowing.
Instructing a lawyer
Spanish Hot Properties recommends you use one of our Approved Lawyers that have been carefully selected and have the Spanish Hot Properties seal of approval.
Having paid an initial deposit, you will need a Spanish lawyer. We recommend that you select someone with local knowledge that has been approved by Spanish Hot Properties and who speaks your language. Your lawyer will carry out numerous checks to ensure that your chosen property is indeed owned by the person selling it and that it has been marketed correctly. Your lawyer will ensure that there are no undeclared debts owing on the property and that all service bills and taxes are paid up to date.
Using a lawyer safeguards your investment and means that when you receive ownership of your property you will not inherit any outstanding debts.
If you are purchasing an off-plan Spanish property your lawyer will ensure that the developer has an insurance policy or bank guarantee in place ensuring that should the purchase not go ahead at the fault of the developer, your money plus interest of 6% will be returned.
Typically a lawyer will charge 1% of the purchase price of your property plus VAT at 16% for his services during the sale process.
Your lawyer can arrange power of attorney should you wish a third party to sign for your property on your behalf. This can be particularly convenient if you are purchasing off-plan property as occupancy licenses can sometimes be granted weeks after your property is officially completed. Services such as water and electricity cannot be transferred into your name until licences to occupy are in place.
Signing at the Notary
The final stage of your property in Spain purchase will be formally completed before a Public Notary when the vendor signs the property over to you. You will exchange your final payment for keys to your new home.
You must also pay 7% transfer tax or 7% VAT plus 1% Stamp Duty if you are buying from a promoter or developer as well as notary fees which may range from 300 – 1.000€ depending on the price of your property, and fees to register the property of about 60% of the notary charge.
You may like to receive advice about whose name to put on the title deed. Due to quite complicated inheritance taxes it may be in your best financial interest to discuss this. We can arrange a consultation with an expert who will provide you with all the information neccessary to make this decision, and potentially save you and your family money in the future.
Keys in hand and paperwork completed, you have reached another ending and should be ready to enjoy everything Spain has to offer. Spanish Hot Properties, will continue to provide you with any advice and service that you need in order to settle into your home y quickly and effortlessly. Let us do the hard work while you sit back and live the dream!
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