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Some Tips from our Visitors

Look before you leap.

Seek and take professional advice.

Don't believe everything you see on the net. Prices are not necessarily correct, or worse the properties do not exist at all!

If buying for your own occupation, ask yourself whether you'd be comfortable in the area. A remote farmhouse might sound idyllic, but is it in reality?

Do as much research as you can and visit, visit and rent first if you're not sure.

If buying for an investment, that is, to let out to holidaymakers, make sure the property is in a place where people want to stay. If you want British guests, perhaps choose a resort near one of the Spanish airports, served by the "low cost" airlines, such as Alicante, Malaga, Palma De Mallorca. If you are not going to be there, who will manage the property, that is, take care of the change overs, keys, that sort of thing? Thus research the property management side of things too.

Financing Your Purchase

Mortgages

New Spanish homes often come with a mortgage and up to 50% of the purchase price can be raised in this way. Basically, the mortgage will be secured on the Spanish property; your income will be taken into account and you need a P60 or if self employed, your certified accounts.

A variety of lenders will lend on Spanish properties, both new and resales; up to 70% LTV (Loan to Value) is possible. If buying for holiday letting, some lenders will take into account the projected net rental income.

It's quite possible to re-mortgage your existing property in the U.K., providing enough equity available and you meet lenders requirements. If you do this, then the charge is against your U.K. property and not the Spanish home; effectively you then become a cash buyer.

Equity Release

For older people, perhaps consider releasing some equity from your U.K. home, in this case there would be no monthly payments to make, but you need to consider the interest and charges aswell as the outcome.

THE INFORMATION GIVEN IS NOT A SUBSTITUTE FOR TAKING PROFESSIONAL ADVICE. PLEASE CONSULT YOUR FINANCIAL ADVISOR.

Finding A Property to Purchase

Inspection Trips

These are short trips, organised by the promoters and agents of property developers. There is usually no pressure to buy, but the trips are often subsidised and you are usually expected to be in a position to proceed with a purchase, before you book the trip.

Visiting Spain Independently

It's nice to be independent by taking a look around the various areas to get a feel for where you'd like to live and then find a property to suit independently. Make several trips if you don't know the areas well, hire a car and if possible, an independent guide who can show you around. This way, you'll be free to explore as you wish, without having to keep to a timetable! Look in our news page for the latest diy holiday, flight and accommodation deals.

Purchasing a New Property

You can purchase direct from a developer or via an agent. The estate agency business is not regulated in Spain and there are risks associated with buying "off plan". Ensure that you instruct an independent lawyer and one who is independent of the developer or agent.

Buying a Resale

Estate agents in Spain will be only too pleased to assist but as the estate agency business is not regulated in Spain, anyone can set up in this business. Try to choose agents who are members of a reputable trade association and preferably, ones with local and specialist knowledge of the area in which you're considering buying.

Buying direct from owners will save agency commissions and if you instruct a qualified lawyer to act for you, there's little reason why this shouldn't be an alternative way of finding properties. If you can speak Spanish or can hire an interpreter, so much the better. As always take professional advice and be careful. It really is "buyer beware" in Spain.

Alternatives to Buying a New Property or Resale

Long Term Renting

Can be quite hard to find in popular coastal areas. It's easy enough to find winter lets, but when it comes to the high season months, property owners can achieve high rentals from holiday lettings. In addition, Spanish law favours tenants, not landlords, so you will often see rentals available for 10/11 months, where you are asked to move out for a month or more, then move back in, effectively starting a new tenancy agreement. A proper long term rental is one which goes beyond a year, where the tenant has the option (and the right) to renew for up to 4 years.

Living on a Campsite

You can site a mobile home or buy a static on a campsite that is open all year round. Watch the ground rents and charges. The campsites are generally superior to anything you'd find in the U.K. and a pleasant way of living for some.

Coming soon: Spanish property for sale or rent by owner;  Schools update; Setting up home in Spain - practical issues - NIE, Residence; Renting your holiday home and more.

 

More links in the links page
 

Important info:

THE INFORMATION GIVEN IS NOT A SUBSTITUTE FOR TAKING PROFESSIONAL ADVICE.


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