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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. Walkerspain.com 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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Spain’s boost from record visitors and spending

Spain’s boost from record visitors and spending

Spain’s boost from record visitors and spending : : Spain attracted 82.8 million international visitors in 2018, a new record boosted by 18.5 million British holidaymakers and property owners. It was the sixth successive year for growth, achieved by a fourth quarter spurt in arrivals.

Visitors stayed for around a week on average and spent a record amount of €146 per head per day, according to the report from the National Statistics Institute (INE).

For the sixth year in a row, Spain has set a new record for foreign tourist arrivals. There were 82.8 million international visitors last year, a rise of 1.1% from 2017.  Spain’s boost to the economy amounted to €89.9 billion, representing a 3.3% increase from 2017.

Record number of North American tourists

More Americans than ever before arrived in Spain during 2018 – an increase of 11.8% – despite renewed competition from Greece, Tunisia and Turkey. Tourism from Scandinavia dropped 0.7% to 5.7 million and Germany, second biggest market after Britain, had a drop of 4.1%

However, 2018 was the year that tourist destinations like Barcelona, Ibiza and Mallorca clamped down on unregistered tourist lets, threatening fines for owners and agents. This follows protests from locals faced with increased property prices and hooliganism. Mallorca is seeking to ban 18-30 style holiday groups after confrontations and balcony deaths.

Offers on bank-owned property in Spain

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. Walker Property Spain have a well-honed purchase management service for buyers.

Legal – All bank controlled property is fully legal and as such qualifies for generous mortgages.  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.[/vc_column_text][/vc_column][/vc_row] Check latest mortgage offers

Author : : Elliott Barnett, international property writer | Image: Shopping in Spain remains a top tourist attraction. 

More info Can Spain cope with more tourists? | Palma, Mallorca bans holiday apartments    
  
  

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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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Spanish bank bargains, but make sure they are legal

Spanish bank bargains, but make sure they are legal

Spanish bank bargains, but make sure they are legal : : Repossession property bargains have helped to restore the Spanish real estate market to almost its peak level of 2007 with very few legal problems for purchasers. That was mainly because the vendor banks had massive legal departments to ensure the properties on offer were fully legal or were made so.

The lawyers checked all the paperwork and despatched valuers to make sure the villas and apartments matched the relevant documents. The resultant valuations averaged 44% below the peak years of 2007-2008. Great discounts, so it wasn’t surprising buyers were tempted and that their Spanish solicitors found few legalities over which they could hassle down the price. Led by property hotspot Marbella, town hall planners compiled lists of legally built properties and made them available to buyers’ legal representatives. By default, the remainder should be double checked or avoided.

Specialist international brokers, Walker Property Spain declared all their property offerings to be “fully legal” and that “No client has ever lost a deposit or been financially disadvantaged”. Advice to “use a Spanish solicitor” from the start of the buying process came with well honed purchase management services to smooth out any wrinkles with the banks.

Know the history of Spanish bank bargains

Even with the huge discounts on offer, purchase of a repossessed property remains a serious consideration. Buyers should remain vigilant on planning consents, construction standards and permissions. Headlines a few years ago highlighted demolition orders on illegally built villas and owners trying to stave off the bulldozers.

Knowing the history of the property, its current legal state and any proposed nearby further development is vital work for every buyer’s Spanish solicitor.

Columbus finca deeds made legal

Madrid lawyer, Javier de Juan, was retained by the UK purchaser of the Mallorca Estate of the Christopher Columbus family. The property dated back to Roman times and beyond. The first name on the deeds to Son Colom da Sa Cove is Jaime Colom, uncle of Cristobal Colom – Spanish for Christopher Colombus.

It took three months to bring the ancient deeds up to date. They included cave dweller residences, a Roman silver mine, medieval alterations and additions, many boundary changes. Lawyers worked closely with the Mallorca property registry to produce the most accurate and up to date deeds in the history of Son Colom da Sa Cove.

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 already renting out a property longterm, some banks may also include part of your rental income in this calculation

Author: Elliott Barnett, international property writer | Image:: Bank-owned bargains at Valle Romana, Costa del Sol with sea and golf views

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Spanish property – Purchase Ready clinches the deal

Spanish property buyers be purchase ready and secure first choice home...

Spanish property – be Purchase Ready :: Property buyers are missing out on their Dream Home choices in Spain because their legally required documents are not available or up to date when needed. They are essential for viewing property, mortgage approval, putting in an offer to purchase and at the notary when registering the sale.

The property source – bank, developer or private seller – needs to know you are a serious contender with your finance in place and a strong completion date in mind. Recent legislation has added to the purchase paperwork. Typically, around 50 documents per couple have to be collated and ready to secure your chosen dream home.

The Spanish real estate market is returning to previous peak levels of activity and sales. It is obvious there are many properties to sell and plenty of international buyers hunting them down. It’s a fact the best properties go first and, generally, they are snapped-up – by the best prepared buyers.

“Your” dream home sold to a rival buyer

There are 1,000s of “miss buyers” who have failed to get their act together. Instead they have been locked in multiple paperwork deadlocks with banks’ property and departments, Spanish solicitors, developers or promoters. After a month or so of impasse, the seller sees an easier and quicker way to close a deal – and sells “Your” dream home to a rival buyer who has finance and paperwork organised.

Mis-selling in real estate has been around a long time, but “Miss buying” also leads to frustration, tears and heartache for buyers. It happens every day. It’s a sellers’ market…get over it and make sure you are in pole position next time.

From 2001, including the recessional decade from 2007, Walker Property Spain has helped buyers achieve outstanding deals on properties with timely advice and action. Launched in 2017, a FREE purchase management service for international buyers. Purchase Ready was hailed as a great new idea – help and advice when needed and improved sales progress to secure the desired property.

The firm’s Purchase Ready team helps buyers collate all the ID and status paperwork they would need for a speedy purchase; obtaining a mortgage and NIE, the Spanish document necessary to borrow and spend and have utilities in Spain. It was welcomed by stressed-out buyers, wrestling with mañana, mañana responses, tangled forms and their own busy lives back home.

More:  Alcazaba Lagoon Casares new deals | Things to consider
Image: Alcazaba Lagoon Casares, Costa del Sol where phase 2 apartments now offered offplan

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Spanish mortgage deals 2018 – ‘a good choice’

Spanish mortgage deals 2018 for buyers ay La Manga Club, Murcia

Spanish mortgage deals for 2018: There is already a good choice of mortgages and properties from Spanish banks and, from this year, more building starts from local developers expected for any year from 2008, the outset of the recession.

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%.

With mortgage deals from the vendor banks around 2% APR and now fixed interest offers for 20 years from Hola Bank, the English speaking specialist, property buyers are being tempted to buy in record numbers. Walkerspain.com 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.