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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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On-trend penthouses in Spain with free sports and spa

Penthouses in Spain sell quickly, especially any topping an exciting upmarket resort and urbanisation that is setting the new standards for innovative design and build quality along the Costa del Sol.

True to form, penthouses in different sectors of the avant-garde Reserva del Higuerón have sold quickly offplan as they were announced. Any remaining unsold during the construction period have been subsequently ear-marked by international buyers arriving late to the party. Contract signed, deposit made, await keys in Q4 2018.

It is rare that penthouses are still available at the key ready stage of the construction cycle and this can be due to a variety of causes:

  • The buyer, having made the reservation deposits, has had a change of mind – or circumstances.
  • A professional relocation to a distant part of the planet would curtail a buyer’s use of the penthouse;
  • A dip in income negates that generous mortgage offer from the Spanish lender;
  • The proposed penthouse sharing partner has run off with a Strictly Come Dancing contestant?

For whatever reason, there are two absolute gem penthouses available at Reserva del Higuerón, a fully landscaped resort that links verdant hillside to the beach and marina at Benalmádena. One of them is at the top of the resort and the other is halfway down, an easy walk to the beach or a free ride on the resort’s own road train.

The first penthouse on offer is at Altos de Higuerón, located at the upper level of Reserva del Higuerón, and provides stunning views of sunsets and the Med. It provides a generous 150m2 of living space with a large solarium terrace. Brand-new duplex 3-bed, 3-bath and key ready €537,000 with all required paperwork in place.

Midway to the beach is the best selling Hill Collection condominium, where the other penthouse shares the same vistas. It offers 3-bed, 3-bath, 2-terrace configuration and 141.57m2 of living space – plus 171.65m2 for the rooftop terrace. Key ready price is €949,000 and all paperwork ready for quick purchase.

Each penthouse offers huge amounts of space, including terraces for pampering essentials like hot tubs, BBQs. There’s garaging for two cars, storage for jet ski and golf buggy and the household is fully automated – air-con, lights, hot tub and coffee pot controlled from a smartphone.

On-trend apartments at Altos de Higuerón

“An entirely avant-garde urban development with innovative architectural design woven into a natural environment, on-trend apartments and bespoke villas offer a unique blend of privacy and state of the art service, not to mention ample parks, green zones, beauty and health facilities, sports complexes and 24-hour security.”

Reviewed in Daily Telegraph, London

International brokers, Walker Property Spain are offering the last of the penthouses with optional fixed interest mortgages and first year free membership of the onsite sports club and spa where La Liga soccer stars arrive to be recharged and repampered.

More :: Buy before Brexit to beat Spanish residency lock-out  | Image :: Sunset from the Hill Collection, Reserva del Higuerón

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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