Mortgages on rustic properties
 

i have heard that it is hard to get a mortgage on a rustic property.is this true?
the property is a corjito and its in quite a good state being about 10mins away from the town...not too sure if this is classed as urban or not.
if it is classed as rustic does anyone know of any lenders out there who will borrow the money.

Re: Mortgages on rustic properties
 

It could be true - it depends on the legality of the building.

Many houses built on rustic land are either totally illegal or they have been built as agricultural buildings.

If it was legally built and is registered as a house and has the necessary certificates of occupation etc there is no reason why a mortgage should not be granted.

To put it another way, if you can't get a mortgage then don't buy it!

Re: Mortgages on rustic properties
 

You need to enquire if the property has a full escritura (title deed) because if it doesn't, you will not get a mortgage on it. If the property needs to be knocked down and rebuilt you will probably only be able to build on the 'footprint' of the old house so just err on the side of caution and double check everything.

Re: Mortgages on rustic properties
 

If you have the Catastral ref no you can check for yourself the status of the land etc via the Catastro website - see the free beer thread I expect!

Re: Mortgages on rustic properties
 

Spot on dude. :thumbup: ;)

Re: Mortgages on rustic properties
 

hi, our villa is on rustic land and we got a mortgage on it through BBVA (no probs) pat

Re: Mortgages on rustic properties
 

hi did you get a 80% mortgage or was it 70% or less and was this due to it being rustic or just the banks general terms. if they want 30% or more i will struggle with the deposit.

Re: Mortgages on rustic properties
 

can you get a spanish mortgage if you are 19

Re: Mortgages on rustic properties
 

I have a new house built on rustic land. I have two catastral numbers, one for the land which is catagorised as rustic and one for the house which is catagorised as urbano. The house is mortgagable.

Re: Mortgages on rustic properties
 

how much did the lender ask for a deposit

Re: Mortgages on rustic properties
 

The norm for lending purposes seems to be 70% of the bank's valuation. Higher percentages are available but the interest rate will generally be less favourable. As with anything, shop around.
Any mortgage offer will depend on the bank valuation and of course your income.
I don't want to rain on your parade but if you are going to struggle to raise a 30% deposit, maybe you should be looking at a cheaper property because, don't forget, you will also have to pay mortgage arrangement fees, taxes, notary fees (on average 10% of the purchase price) not to mention building licences, architect's fees (not cheap!) etc.

Re: Mortgages on rustic properties
 

il ask again as people are struggling with what iam saying. i have a rustic property with full deeds. i have a 20%deposit and 12%for taxes set aside. what im asking will i get a mortgage with this property or will the lenders ask for more of a deposit as the rustic thing is a grey area. does anyone know of anyone getting a 80%mortg on a rustic property with full deeds.

Re: Mortgages on rustic properties
 

I thought hillybilly just answered this on the previous post, the best scenario, rustic land would probably be less loaned.

I also thought that rustico land dwellings had to be used as the fashion of the land, IE farm buildings on a working farm.

Rixxy will be able to tell you.

Re: Mortgages on rustic properties
 

Someone needs to take a chill pill!

Re: Mortgages on rustic properties
 

The amount a bank is willing to lend really has nothing to do with a property being rustic or urban. It depends on the individual lender's criteria, their valuation and your personal financial circumstances.
Will you get an 80% mortgage on this particular property? None of us on here is in the position of being able to answer that question. Ask some banks.

Re: Mortgages on rustic properties
 

It depends where you are and when the house was built. It used to be quite easy to build a house on rustic land so long as you had a reasonably big plot. 5000m2 was prettty typical and in our area it was 7000m2. We build a house on 8000m2 of rustic land about 4 years ago.

It is possible to build an agricultural building on a smaller plot but it will not be registered as a house but as some sort of shed or store.

In Andalucia, and in other parts, it is now necessary to have over 30000m2 to build a house, and yes, you do have to be registered as some kind of farmer and paying social security as a farmer. In other words effectively you can't build a house on rustic land any more.

It is so important to check the escritura and registry if you are buying a property on rustic land to ensure that what you are buying is a "vivienda" not an "apero", "nave" or an "almacen".

Re: Mortgages on rustic properties
 

Oh, we looked at land in Almeria a few years ago and they were big plots and you had to plant about 50 Olive trees in it.
That must of been how they were working it then.

Re: Mortgages on rustic properties
 

oh thanks for that helpful advice rugbymatt!!!:D

Re: Mortgages on rustic properties
 

your welcome.