Importance Of Financing A Spanish Property

How to purchase property in Spain has been a favorite question for buyers for some decades. Now investors are catching on. Spain has a magnetism that’s hard to explain and that few other countries possess. It’s not just the spectacular scenery, fantastic beaches and yearlong sunshine. It seems to be something about the easy, relaxed pace of life and the exuberance and joy of its people, which draws people back year after year and makes them reluctant to leave. Plus, of course, it has the lowest cost of living in Europe! But clearly, it is exactly this magical quality that you will need to beware of when it comes to buying property! It is fatally easy to fall in love with a house that is bathed in sunshine, with a stunning view, and allow all common sense fly out of the window as thousands of British buyers have discovered to their cost. Stranded with no property and no money, many are wishing they had never heard of Spain. So if you are serious, you need to understand how to buy property in Spain in a way that will improve your lifestyle, and will not leave you out of pocket. Below are some suggestions to point you in the right direction. Once you have chosen a place, book into a hotel for some days and explore. Ideally, do this in the least appealing time of year weatherwise. Pretend you are a journalist and attempt to find as many drawbacks as possible. If it’s in a hotel area, would you fancy it if many vacationers have gone home? When it’s in a rural location, would you feel cut off in the winter months? If one of its attractions is that it is close to an airport, how would you feel if your airline stopped flying into that airport? This is a biggie. Hire an attorney whom you can really trust and who really understands all aspects of Spanish real estate law, such as planning and zoning laws. Get more info if you are searching for more information concerning financing a Spanish property.

Your consulate may be able to provide you with a list of recommended attorneys. Do you know how many individuals are left bankrupt, with their dreams in shreds, because they did not check planning regulations? Either they did not check that they had full title to the land, or they failed to make sure that the property they were purchasing was legally built on that land. If this happens, the authorities will simply demolish the property, leaving you with nothing. And this has happened to lots of people. Remember also that in parts of Spain, even if the property is legally built on the land, the authorities can return the land if they decide they need it for municipal development. And there is nothing you can do about it. This is known by English speakers as the “land-grab” and has occurred, for instance, in areas of Valencia including the Costa Blanca. Though this was declared illegal under European law, many foreign property owners continue to be threatened with loss of the property. So do take very clear and thorough legal counsel before proceeding. Before you begin your search for a property, write down your budget and keep looking at it. From the Spanish sunshine, after a few glasses of Rioja, it’s easy to be seduced by a gorgeous property that you really can not afford. Be clear about your budget and stick to it. When you have begun in earnest in your property search, view the properties as frequently as you wish. If any owner wants to restrict you to a single viewing, walk away. Take care to check such details as telephone connections, and broadband if this is important to you.

After your initial screening, a lot of questions will happen to you so write them down before next time. Try to visit in different weather conditions and at different times of the day. For financing, the simplest way to raise a mortgage is often by going to a Spanish bank. You can usually get up to 80 percent of the purchase price like that. As an alternative, you might prefer to refinance your existing property. Do not forget that in Spain there are initial charges that need to be paid up front. These include transfer tax, stamp duty, fees to the notary public, and name changes to the deed. You should allow about 10 percent of the purchase price to cover them. When you have finally got to the point of buying your property, the first thing you do is sign a “reservation” agreement. This means the vendor has to withdraw the property from the market. When the attorney’s search is finished, you and the seller sign the “sale and purchase” contract. This is legally binding and all the particulars of the property must be correctly entered. On completion day, you and the seller, both with your attorneys, attend the office of the notary public to sign the final contracts. The process is now complete. Relax with a glass of wine and enjoy your new property. These hints about how to get a property in Spain should make certain that the process goes smoothly and that you don’t fall into any of the drawbacks which many expatriates have encountered. Just ensure that you have covered all the legalities, which you can trust your lawyer or attorney, and that all the paperwork is properly filed. It appears a hassle at the time. But it will let you enjoy and profit from the new property for the rest of your life.