Building Companies
There are many building companies and more appear
when the interest for purchasing increases. The same rule applies for
people and companies who sell properties, some even without being registered.
We recommend you to engage an authorized and registered Estate Agent for
the purchase of your property. It will give you the security you need.
We only sell freehold properties which can therefore
be used by you, your family or friends all year round. Both land and property
are registered to you.
We have co-operation agreements with several
Spanish builders.
When purchasing a new property you can request alterations and changes to be done during construction as long as these are written into your purchase contract. Also the payments are made in stages which sometime can be an advantage. For new constructions there is a 10 year guarantee for construction faults, according to Spanish law.
Please note that
all prices quoted here are the prices given by the respective builder.
These can vary without prior notice.
We can also offer a range of resale properties
but as the speed of sale is fast it is difficult to have updated material
on these. When interested in a resale property we ask you to contact us
prior to travelling to Spain for up-dated availability.
The most important when purchasing a property
is that you study your budget first. Note that you have to add approx.
10% for legal fees and taxes on top of the purchase price and in most
cases the cost for furniture and electric appliances should also be taken
into consideration. Do not look for a property that is out of your price
range, it will only disappoint you afterwards.
When signing a contract it keeps a particular property for you at the stated price. At this time you pay a deposit corresponding to 10% of the total amount. With some builders you can pay by Visa card. If they do not have this facility we will help you to contact a bank in which Visa or Master Card can be used.
Next payment is made 6-8 weeks after the signing of the purchase contract and the sum of 40% of the total amount. The two next payments are each of 25%. The last 25% is paid when you move into the purchased property.
If you are purchasing a resale property the last
90% are payable at the Notary when signing the Title Deed.
Apart from the purchase price you have to pay 7%
vat, notary fee at the time of signing your Title Deed, Plusvalia tax
(paid once) together with connection fees for water and electricity. We
estimate the costs to be approx. 10-11%.
This applies to both new and resale properties.
We can help you to sort out finance (mortgage) here in Spain. The interest is at the moment favourable.
Note that mortgages are granted depending on status.
You need to be able to provide proof of income and assets in your name.
Please click here for more details.
Once you have moved into your property (applicable
to new properties) you may need to contact the builder for small adjustments.
We are available to help you with needed translation to the builder.
Most of the properties sold are unfurnished but we
can recommend various furniture shops. Note that in most properties the
electrical appliances are not included. The builders selling properties
furnished will have a detailed inventory list available for each property.
It is possible to purchase a property with family
members or friends. The Title Deed will then be signed in the name of
all the owners. This could be a good alternative for financing the property.
The bank guarantee can be obtained for amounts paid to the builder. Please
note that some builders charge a fee for this.
7 % I.V.A. - (VAT) of declared price
7 % Transfer tax of declared price
0,4 - 0,8 % of declared price
0,4 - 0,8 % of declared price
approx. 0,3 - 2 % of declared price
approx. 0,3 - 2 % of declared price
Due to above you need to calculate approx. 10 - 11 % on top of
the purchase price to cover for the costs.
Solicitors fees - approx. 1 % of purchase price.
Annual running costs:
- Telephone (if installed)
- Insurance
- Water and electricity (standing charge + consumption)
- Community fee (if you share gardens, swimmingpool etc.)
- Taxes (you are obliged to submit a tax form on an annual basis)
- Local rates
Exchange
If you are planning to purchase a property in Spain you will have to purchase €uros at some stage to pay for the property.
Getting the best rate can save you “many” pounds on the total
cost of your property.
Foreign exchange is not at the forefront of everyone’s mind given
all the other considerations to make when purchasing a property abroad.
Fluctuations in exchange rates can make a huge difference to the price
you eventually pay. When purchasing a property in Spain you will need
to convert pound sterling into €uros but the €uros can still
fluctuate in relation to the pound. So you can see that searching for
the best rate (sometimes months in advance) is essential. Click
here and let HIFX do the work for you!
Mortgages
If you are planning to “help” your purchase with a mortgage this can be arranged on your UK property, but if you do not wish to risk the security of your home in the UK then the answer is to raise money on the Spanish property you intend to purchase.
Spanish banks will today lend up to approx. 70% of the value of the property and the interest rate is normally lower than in the UK. The repayment period varies from 10-20 years. Both, lending amount and repayment period are subject to status.
There are also UK banks who will lend against a Spanish property but these tend to be more expensive.
It is a very simple process. You will be asked for some basic information about your current situation, your home, your current work situation and your income.
Many clients have financed their mortgage repayments from rental income. This is of course always an option but remember, normally a rental income is not guaranteed.
Once you have sorted out your budget it is time to look for a property. Whilst some people decide to “walk” it alone, most people choose to go through an agent to save themselves the hassle of finding the properties, instructing solicitors, making sure the property is taken off the market and that it is in a good are and re-saleable if need be. All this of course in another language and whilst the procedures are not all that different from the UK they are different and mistakes can be costly.
| To apply for a mortgage the following documents are needed: | |
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Reference letter from the bank in home country (for all applicants) |
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Wage slips (P60) - last 3 months |
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List of assets in home country |
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Copies of passport/s |
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Copies of NIE-numbers |
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If self-employed last years audited accounts and tax return. Also needed accountants reference letter. |
Online mortgage application form click
here.
We recommend that you always appoint a representative that can carry out any searches on the property you are interested in buying and of course, also handle any other matter regarding purchasing a property in Spain.
If you already are in contact with one we are happy to liaise with them. If not, please feel free to use below link for more information.
