Mortgage in Spain
 

Hi we are a British couple who are looking to purchase a Farm/Finca in the near future and we are going to spain on the 16th Feb to have a look at some properties. We have just been advised that we may be unable to get a mortgage to buy a rural/rustic property in Spain, as most lenders will only give mortgages on new/urbanisation properties.

Does anybody have any experience of this

HELP:D :scared:

Re: Mortgage in Spain
 

There are two kinds of mortgage, one as a non resident which you can borrow approx 70% and as a resident 90% +. Of course they will also want evidence of income. On fincas they do a valuation so if the finca needs renovating they will only lend on the actual today worth of the building, no extras for improvements. A friend of mine who has a successful business down here met this problem. Anything over 20 years old they class as old. I have just brought a finca, but the location is good, as I have sea and valley views and not far from Marbella, so it should hold its value. If you buy in some hick town away from anywhere you may have a problem. When you are borrowing don´t forget to add the 10-12% taxes onto the price also, some people forget. Also make sure of electricity, water, phone, as in some areas people have been waiting 3 years for a phone...... This applies on the Costa Del Sol. In valencia you have to watch about land grabbing, ie they can take your land from you for developments etc, I hear their are more problems in that area. So be careful.

The banks will do their own surveys of the property, but make sure you have a good lawyer also, as I have heard sometimes the property title isn´t always transferred to the new owner which can cause major probs. So a good lawyer is essential.

Before buying, spend some time in the area to see if you really like it do your homework and be careful who you trust, especially other English or foreigners. Learn Spanish as soon as you can, if you are living in the country the natives won´t speak English, and you will feel isolated otherwise and less independent. Another tip is to find out when you buy who the current owners use for plumbers and other tradespeople, as the person will have knowledge of the property.

Good luck :)

DG.





:)

Re: Mortgage in Spain
 

Just a few words to advise you to be carefull regarding house purchases. I was in Spain for 8 months last year and spoke to quite a few people who had horror stories to tell regarding their house purchases. One couple who had lived outside Benidorm for 20 years had a letter from the local council to say they wanted to reclaim her large garden with a cost to her of over £80,000. Go figure that our... Another couple said they had a bill from the council for tarmacing the pavements behind and in front of their apartment. I dont want to put you off realising your dream but be very very careful.
Glasni

Re: Mortgage in Spain
 

Valencia is the main provence to be careful of this. Look on the map to see how big it is. A good english speaking laywer should be able to advise you, but pick them from Spain not UK.