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Renovation Mortgage help !
Hi i wondered if anyone can help me, im buying a ruin on the costa azahar which i will be having rebuilt.I will be able to buy the property outright but i would need a mortgage to complete the renovations.Does anyone know who deals with these "renovation mortgages" ? and i would love any tips or hints (and downfalls)from people who have already done this kind of project.
many thanks |
Re: Renovation Mortgage help !
Presumably you will be finding a suitable architect who will prepare drawings for submission to planners. Have you already found an architect? Also it is important to be aware that an architect may not be the best person to talk to about planning regulations. Have you obtained planning permission to rebuild the ruin? I know nothing about the Costa Azahar but in other parts of Spain, you really cannot assume that just because there used to be a building on a piece of land, the planners will agree to a replacement. Especially if the roof caved in years ago. Before spending any money it is vital to thoroughly investigate this.
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Re: Renovation Mortgage help !
If you are wanting to include the costs of works/renovation in your mortgage you will need to provide professional estimates or invoices from tradesmen registered in Spain together with a copy of their insurance certificate.
Best to try a reputable mortgage broker to do the leg work for you. |
Re: Renovation Mortgage help !
Hi Nige thanks for the advice,i have already got plans drawn up and a reputable builder has quated for the works.The "ruin" is actually a terraced town house so its just a question of rebuilding within the existing shell.
Thanks Nick |
Re: Renovation Mortgage help !
Hi bh49q,
If you have got the plans and a building licence then what you need is a stage payment mortgage, just as if you were doing a new build villa. This pays lump sums as the build progresses at defined stages of completion. I believe these are not common with Spanish banks but both Natwest and Halifax (through their Spanish subsidiary) offer these specifically for works in Spain and have detailed explanations on their websites. Sorry I dont have the URLs to hand. Regards, ;) John. PS I tell lies here is the Halifax http://www.halifax.es/halifaxing/default/default.asp and the Natwest is http://www.natwestinternational.com/spanish.asp
Originally Posted by bh49q
Hi Nige thanks for the advice,i have already got plans drawn up and a reputable builder has quated for the works.The "ruin" is actually a terraced town house so its just a question of rebuilding within the existing shell.
Thanks Nick |
Re: Renovation Mortgage help !
Originally Posted by John & Kath
Hi bh49q,
If you have got the plans and a building licence then what you need is a stage payment mortgage, just as if you were doing a new build villa. This pays lump sums as the build progresses at defined stages of completion. I believe these are not common with Spanish banks but both Natwest and Halifax (through their Spanish subsidiary) offer these specifically for works in Spain and have detailed explanations on their websites. Sorry I dont have the URLs to hand. Regards, ;) John. PS I tell lies here is the Halifax http://www.halifax.es/halifaxing/default/default.asp and the Natwest is http://www.natwestinternational.com/spanish.asp Thanks Nick |
Re: Renovation Mortgage help !
If you are buying the property outright and are only looking for mortgage to carry out the rebuild you could look at a specific type of developers mortgage offered in Spain.
This mortgage is known as Auto Promocion (Self Development). There are some excellent deals to be had with this type of mortgage. Ask your local bank, most offer it so long as you already own the property. You will have to meet some of the requirements outlined in previous posts but I feel it's worth investigating. It is similar to the stage payment mortgage. Good Luck David |
Re: Renovation Mortgage help !
Hi Cadiz Builders,
Could I use an Auto Promotion (self Development) mortgage to fill any shortfall in my new build villa project? I will own the land and have sufficient capital to get under way with the build but as ever when it comes to finishes and details of the fit out it may not stretch to meet our wishes. It would be good to have a plan b) in place to keep the build on programme. Regards, ;) John and Kath.
Originally Posted by Cadiz Builders
If you are buying the property outright and are only looking for mortgage to carry out the rebuild you could look at a specific type of developers mortgage offered in Spain.
This mortgage is known as Auto Promocion (Self Development). There are some excellent deals to be had with this type of mortgage. Ask your local bank, most offer it so long as you already own the property. You will have to meet some of the requirements outlined in previous posts but I feel it's worth investigating. It is similar to the stage payment mortgage. Good Luck David |
Re: Renovation Mortgage help !
Hello John & Kath,
If you alredy own the land that's a head start. Presumably you already have an architects project to build the villa. At an early stage approach your bank and tell them what your intentions are and that you would like to present the project for valuation. The bank will then send your project for valuation, a tasador (valuer) will view your plans and come back to you with a figure. This will be the amount they are willing to lend on your project. To get hold of any money your architect will need to give the bank a "Certificado de porcentaje de obra ejecutada". Based on this figure, the bank will lend you up to the percentage that you have already built. As an example if your project is valued at €100,000 and your architect prepares a certificate of percentage built of 40%, you can borrow up to €40,000. I hope this helps David |
Re: Renovation Mortgage help !
Hi Cadiz Builders,
We are on Costa Esuri at Ayamonte. We have bought the plot and engaged an arquitecto who has produced the sketch plans which we are delighted with, he is now, together with the technical architect, preparing the detail for submission to the College of Arquitects in Huelva. When we have their approval and the building licence we will go out to tender for the build project. The outline approval by Ayamonte is for 182 sq m but because of the steep slope on the site there will be two basements which will mean that we will have an enclosed area of nearly 350 sq m and using €1.000 sq m for the finished villa and €300 sq m for the basements we are looking at all up costs of about €350.000 inclusive of the plot costs. If when the college have approved the plans and estimates we take these along to the bank will they ask the Tasador to look at these costings and base their proposals on them? Do they charge a fee for that? Or will they ask the Tasador to estimate the final value of the finished project frontline to the 14th fairway (lets say €500.000) and base their proposal on the later figure? From the release of payment point of view it sounds just like a stage-payment mortgage in UK based on architects valuations of % completion. David, any further advice would be greatly appreciated. Regards, :confused: John and Kath.
Originally Posted by Cadiz Builders
Hello John & Kath,
If you alredy own the land that's a head start. Presumably you already have an architects project to build the villa. At an early stage approach your bank and tell them what your intentions are and that you would like to present the project for valuation. The bank will then send your project for valuation, a tasador (valuer) will view your plans and come back to you with a figure. This will be the amount they are willing to lend on your project. To get hold of any money your architect will need to give the bank a "Certificado de porcentaje de obra ejecutada". Based on this figure, the bank will lend you up to the percentage that you have already built. As an example if your project is valued at €100,000 and your architect prepares a certificate of percentage built of 40%, you can borrow up to €40,000. I hope this helps David |
Re: Renovation Mortgage help !
Originally Posted by bh49q
Hi i wondered if anyone can help me, im buying a ruin on the costa azahar which i will be having rebuilt.I will be able to buy the property outright but i would need a mortgage to complete the renovations.Does anyone know who deals with these "renovation mortgages" ? and i would love any tips or hints (and downfalls)from people who have already done this kind of project.
many thanks Hi Nick if you own the land outright and have an architect/planning(detailed) etc then most banks will allow you to borrow against the value of the land and proposed project. usually you can finance up to 70/75% as long as your income stacks up. I deal with this sort of thing all the time in the Uk and have just started doing the same in Portugal and Spain. If you want to PM me I will forward the email of the representative of the bank I deal with so you can go directly to her. Cheers, Matt |
Re: Renovation Mortgage help !
Originally Posted by John & Kath
Hi Cadiz Builders,
We are on Costa Esuri at Ayamonte. We have bought the plot and engaged an arquitecto who has produced the sketch plans which we are delighted with, he is now, together with the technical architect, preparing the detail for submission to the College of Arquitects in Huelva. When we have their approval and the building licence we will go out to tender for the build project. The outline approval by Ayamonte is for 182 sq m but because of the steep slope on the site there will be two basements which will mean that we will have an enclosed area of nearly 350 sq m and using €1.000 sq m for the finished villa and €300 sq m for the basements we are looking at all up costs of about €350.000 inclusive of the plot costs. If when the college have approved the plans and estimates we take these along to the bank will they ask the Tasador to look at these costings and base their proposals on them? Do they charge a fee for that? Or will they ask the Tasador to estimate the final value of the finished project frontline to the 14th fairway (lets say €500.000) and base their proposal on the later figure? From the release of payment point of view it sounds just like a stage-payment mortgage in UK based on architects valuations of % completion. David, any further advice would be greatly appreciated. Regards, :confused: John and Kath. Hello John & Kath, That's right once you have your project "Proyecto de Ejecucion" in hand take it to your local bank. They will give it to a Tasador to value the project, including location, quality of build etc. you will have to pay for that. I would estimate around €300 for the tasador. It is similar to the stage payment mortgage in the UK. You receive funds on the certified % completion from the architect. P.S. We'd be interested in quoting for the building of your villa as well. Regards David |
Re: Renovation Mortgage help !
Hi David,
I thought you might. I ought to warn you that I am CEng, MICE, FIHT and FIM which some would say stands for MEAN but then I follow my college professors dictum that a Civil Engineer is someone who can do for 10 shillings what any fool can do for a pound. I will bear you in mind but Cadiz is a long way from Ayamonte and there don't seem to be any shortcuts unless you have a helicopter or boat so that must add to your costs. Very many thanks for your advice and all your posts are easily understood and seem very grounded so I will read them with interest in the future. Regards, ;) John.
Originally Posted by Cadiz Builders
Hello John & Kath,
That's right once you have your project "Proyecto de Ejecucion" in hand take it to your local bank. They will give it to a Tasador to value the project, including location, quality of build etc. you will have to pay for that. I would estimate around €300 for the tasador. It is similar to the stage payment mortgage in the UK. You receive funds on the certified % completion from the architect. P.S. We'd be interested in quoting for the building of your villa as well. Regards David |
Re: Renovation Mortgage help !
Originally Posted by John & Kath
Hi David,
I thought you might. I ought to warn you that I am CEng, MICE, FIHT and FIM which some would say stands for MEAN but then I follow my college professors dictum that a Civil Engineer is someone who can do for 10 shillings what any fool can do for a pound. I will bear you in mind but Cadiz is a long way from Ayamonte and there don't seem to be any shortcuts unless you have a helicopter or boat so that must add to your costs. Very many thanks for your advice and all your posts are easily understood and seem very grounded so I will read them with interest in the future. Regards, ;) John. Regards David |
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