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Network Property Search

Network Property Search

Property bargains from Spanish banks and revitalised developers.
Be Purchase Ready to secure YOUR home and mortgage in Spain.

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Spanish mortgage deals 2020

Spanish mortgage deals for Q4 2020: There is a good choice of properties and mortgages from Spanish banks and with more building starts – and restarts of recession troubled sites – from developers for any year in the last decade Spanish property buyers are returning to the market despite the impact of Covid-19. Plots in prime locations are well-priced and 100% mortgages on the building costs are available. 

Best buys – New apartments and villas from leading banks who have taken charge of developments under construction where developer loans are in default. Brand-new, some with years of construction guarantees, these homes are excellent value with peak to present discounts around 35%.

  • Resale homes can generate up to 70% LTV and brokers are offering rates for high rated clients from 1.5% fixed for up to 20 years. Interest rate from 1.3% variable up to 30 years. On 500K plus 9% purchase tax.
  • New build development, finance depends on the current specific deals from the developer or as above. On new properties 10% VAT.
  • Plot to build: client buys plot outright with cash, becomes the promoter and has the selected villa built to turnkey project for the price all included. 21% vat on plot and 10% on the build. Up to 100% finance for building costs is possible. 

With mortgage deals from the vendor banks around 3% APR and now fixed interest for 20 years from Hola Bank, the English speaking specialist, property buyers are being tempted to buy a property in Spain once again. Best interest rate for Q4 2020 is 1.9% variable for a 60% loan or 2% for 70% loan. buyers can be pre-qualified for their Hola Bank mortgage as part of a Purchase Ready service that smooths the way to a successful purchase and the most suitable mortgage.

Offers – Spanish banks want the properties off their books and will listen to realistic offers. These are formally submitted to special committees that meet weekly and will generally provide an answer with two weeks. However, as the selected property remains on the market, there is the chance it may sell directly off the website or through a higher submitted offer.

Legal – All bank controlled property is fully legal and as such qualifies for generous mortgages as shown here. However, we advice all buyers to hire their own independent Spanish solicitor to check all paperwork, undertake conveyancing and registration and assist with utility provision etc. We can provide firms who have assisted previous buyers successfully.

Endeudamiento/DTI – This is the debt-to-income ratio, and is the percentage of your net income which your total mortgage and loan payments will represent. For example, if your net income is 3000 Euros per month, you already pay 750 Euros per month for your existing mortgage, and the mortgage applied for will have repayments of 250 Euros per month, your Endeudamiento/DTI will be (250+750)/3000 = 33%.  NB – if you are renting out a property longterm, some banks may also include part of your rental income in this calculation.

:  : All offers subject to buyer status and availability.

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Brexit “blip” puts Spanish homes dreams on hold

Brexit “blip” puts Spanish homes dreams on hold : : British buyers of Spanish real estate are Brexited Out by the antics of the EU and UK politicians. They appear to be so confused by the blitzkrieg of Brexit news and views they can’t begin to focus on their dream home in sunny Spain

As a result, Brits have missed the start of the 2019 property buying season. For decades they led the way as the Spanish property market returned to business after Christmas and Three Kings public holiday.  

Would-be British buyers would browse their favourite Spanish property websites, phone friends and family living on a favourite Costa to check for nearby bargains and make a benchmark shortlist of any villas or apartment that matched their requirements. A quick search for cut-price flights and fly to buy planning begins in earnest…

But, not this year. So far.

They appear to be taking a “rain check”. It looks like they need a short recovery period while Brexit legalities are sorted out and life can return to something like normal again.

They will have noted the new bi-lateral agreement between the UK and Spain safeguarding each countries ex-pats. Free healthcare is unlikely to be on offer if there is a no-deal brexit. And that, at last, the UK government has provided detailed information for Brits currently living in Spain and for the 1,000s more planning to relocate there – or buy a holiday home.

The British Embassy in Madrid has stepped up its information for buyers of Spanish homes and, following a Q&A with ex pats and potential buyers, will post Brexit updates on its website’s excellent property advice section.

There is new information that will be most useful to buy to let investors, most of whom find themselves taxed out of the stalled British property market. They are also facing tougher UK mortgage conditions. Many BTL investors are prepared to invest the proceeds from UK forced disposals into Spanish property. But not before the Brexit cannon smoke has dispersed and they have a clear vision of the new potential.

Living the Dream spurs property investment

Demand for Spain’s property bargains has risen quarter on quarter. In the Brexit Years, Scandinavian and Benelux buyers have been at the front of the queue for the best deals – mainly in Costa Blanca and Costa del Sol.

For British buyers, Brexit may yet prove to be just another obstacle on their journey towards Living the Dream in Europe’s favourite holiday destination. In recent years 1 in 4 property purchases in Spain were made by Brit buyers. This was despite crooked town mayors, dodgy builders, greedy bankers, dishonest developers, sales scams and metres of official red tape,

This market share is likely to continue after Brexit. Spain’s unique blend of culture, climate, natural beauty, cuisine, superior transport, beaches and Brit-friendly attitude will remain unrivalled for foreign property buyers. The Brexit blip is unlikely to stop Brits investing their favourite vacation destination.

Out of the EU, maybe. Out of Spain…Vive la vida loca.

Author: Elliott Barnett, international property writer | Image: Brexit: Which way is out of the EU? 

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New homes where eagles fly – €45,000 in Sierra Escalona

New homes where eagles fly – €45,000 in Spain’s Sierra Escalona :: Brand new apartments with communal pool for only €45,000 in a key Spanish location. Between golden beaches and verdant mountain forests where eagles fly and wildcats roam. Released by Spain’s Sareb bank for international buyers.

Fixed at one third of the original construction cost, the prices are designed to attract international buyers to Torremendo, a “Real Spain” town in Alicante province. It is 20 minutes south of historic Orihuela City and only five minutes longer to the sandy beach holiday resorts of Orihuela Costa. International airports at Alicante and Murcia are 30 minutes’ drive.

Torremendo is a timeless village where already 39% of dwellings are second homes and 18% of residents are ex-pats, mainly German and British. They have been attracted because of the tranquil location that includes large lakes and forests of the Sierra Escalona. They like the fishin’, huntin’ and relaxin’ outdoors ambiance.

International brokers, Walker Property Spain have a good selection of the 2-bed, 2-bath apartments, including penthouses with rooftop solarium, shower and barbeque. Prices from €45,000 to €52,500. Local property professionals say the prices are 70% lower than those intended by the original developers. They equate to €371 per square metre.

Spain’s latest nature park designation

The development, Residential Mirador 1, has been built high above the lush Vega Baja plains. Home owners share a gated communal area with swimming pools, an ideal base for outdoor activities in what is expected to become Spain’s latest national nature park.

 The area is acclaimed for its wildlife, including rare migrating birds and Spain’s greatest concentration of wild cats.

The Sierra de Escalona is considered one of the most valuable ecological spaces in the region of Valencia. It has had international recognition for the many different species of birds of prey. Among them are buzzards and Northern goshawks as well as over a hundred pairs of eagle owls – one of the biggest communities in the whole of Europe, providing many sightings. There are breeding pairs of Bonelli’s Eagle and Golden Eagle.

Image: New homes at Torremendo | Eagle in flight, Sierra Escalona

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Buy before Brexit to beat Spanish residency lock-out

Buy before Brexit safeguards residency rights if the UK leaves the EU with a hard Brexit

Buy before Brexit to beat Spanish residency lock-out :: Spanish property buyers are getting younger as families race to Buy before Brexit and beat the official window for EU residency. British buyers can lock-in their residency rights until the end of 2020 and safeguard them permanently in the event of a negative Brexit outcome.

The average age of Brit buyers in Spain has dropped since the Brexit referendum to 42, well below the traditional “pensioner” age group. This is partly due to entrepreneurs or executives, working remotely and conferring online. Another factor in the age drop is the Brexit political machinations. The uncertainties and current buoyant market are pushing buyers to that desired home or buy to let investment. Buying before the cut-off date should ensure British families benefit from the “preferential EU rules”. These safeguard residency, healthcare and payment of UK pensions and beneficial tax schemes on offer for retirees living in Spain

Buy before Brexit is a flying start

Buyers seeking to live in Spain need to build-up a residency  history of five years. If you have lived there for five years or more you are granted all rights for the future. The 27 months to the cut-off date can provide a flying start towards permanent residency. The UK Government made a unilateral declaration that EU citizens will retain their UK residency rights after Brexit. Although it is unlikely the EU will remove the rights of British property buyers in Spain, it could happen…

Buying before Brexit helps to avoid:

  • Property price increases fuelled by a returning strong market.
  • Additional relocation red tape applied after a hard Brexit.
  • Any foreigner taxes or penalties after a hard Brexit.
Removal firms report business is up by 50% compared with the first two years from the referendum. Forward bookings have surged in recent weeks amid downbeat media coverage of the Brexit negotiations. Ex-pats, trying to sell their properties in Spain are finding more interest this year than in the first two years since the  Leave referendum result. As a Plan B, they too have 27 months in which they can also be building towards five years continuous residency. Image: Costa del Sol condominium-style living remains popular with ex-pats Editorial: Kevin Barnett, international property writer