Buying Property in Spain
Buying property on a golf resort is a fairly straightforward affair. There are various different methods of buying a contract depending on which stage of development the property is in.
Buying From The Developer Off-Plan
The most common purchases are directly with the developer buying a property that has not yet been built. The developers will often sell direct but the vast majority of purchasers buy through one of their appointed agents such as Murcia Golf Properties. We have been made a 'Golden Partner' by Polaris World and are able to offer their full range at no additional cost to the client. The advantage to the client is that they have an agent to deal directly with who will look after them throughout and after the completion.
Initially a client will normally arrive in Spain on an Inspection Tour, although we do have staff on site who can accompany you if you are already in Spain on business or holiday. The client will then choose their favourite resorts and we will then try and locate the best plots available for them, taking into account their personal requirements ie pools, plot sizes, stairs, orientations and proximity to facilities etc.
Reservation Agreement
When a property has been identified a deposit of £2000 or up to 5000 euros is payable to reserve the plot. This deposit is refundable and will secure the property for 20 days until a contract is signed.
Purchase Contract
On signing the contract and, depending upon the developer, the initial downpayment of either 15 or 25% will be payable. A second payment of 15% is normally due 9 months after contracts are signed. The balance of 60-70% is due at completion and a Spanish mortgage through the developer will be available (subject to status) to cover this amount if required.
Bank Guarantees
Throughout the build process the developer will give the purchaser bank guarantees to cover any amounts paid. These documents ensure that the monies paid are secure and will not be lost and - in the unlikely event that the construction is not completed or if the developer declared bankrupt etc. the bank will refund the monies normally with interest.
Clearly unless a contract is cancelled often many of the best plots are reserved early in the life of a development or area as it is released and will therefore not be available until later on in the construction process. At Brace Oakley we keep a close eye on releases and advise our clients as soon as properties are available to ensure they invest in the best plot available at the time. The alternative is to buy a contract from an investor who has picked a good plot early in a development and now wishes to sell on. This is known as a Contract Resale.
Contract Resales
Many properties are available as contract resales. These will often be good plots that are nearing completion that were originally purchased at a low release price. Investors then sell them on with a small profit which means that a client can purchase a prime plot often at a lower price than the developer is actually selling the same property for on a later phase/release. The advantage to the purchaser is that sometimes better plots can be found and the property will be closer to completion. The disadvantage is that a greater amount of money will have to be paid as the investor will often have paid the 40% and will require a profit on top of this amount to release the contract. With Polaris World the monies paid so far on the contract are paid directly to Polaris who then cancel the original contract and make a new one in the new purchaser's name.
Property Resale
The most common form of resale is buying a property that has been completed and the seller has obtained the escritura (deeds) and for whatever reason is now selling the property on. The advantage to the purchaser of buying a completed property is that often a large mortgage will be available for as much as 80% of the value of the property at lower rates than a UK mortgage.
Legal Matters
We are able to put you in touch with a number of good English speaking Abogados (Solicitors) in Spain who offer excellent service and good rates to our clients.
Mortgages
We can find out the latest rates and offers available to you and put you in touch with English speaking staff at Spanish banks. We can also refer you to an independent financial advisor who is able to offer you a wide range of mortgage products.
Purchase Costs
On top of the basic price of the property the buyer will have to pay I.V.A (equivalent to our VAT), notary charges, land registry fees, transfer tax and abogados fees. We will advise on the approximate costs when a purchaser identifies a plot. Normally a 'rule of thumb' will be 7% for IVA , 1% for solicitor and 1-2% for other costs totaling up to 10% above the basic nett price of the property.
Wills
We advise all our clients to make a Spanish will. To avoid any future problems with succession matters as the law in Spain is slightly different to UK if you wish to leave assets to a third party and not children or parents.
If you are interested in any of the above please contact us using the form supplied or:
