Buying Guide

Payment Terms

Most property purchases fall into two broad categories, re-sale and new-build. A re-sale property is a property sold by a private owner. New-build properties are bought before completion at various stages of development from completely off-plan to closes to the finish date.

Re-sale Purchases

A reservation fee of around 3,000€ is generally acceptable (may be higher for higher priced properties) This takes the property off the market and fixes the price while legal issues are looked into to ensure that there is no problem with the property in question.

Once the legal checks are completed, purchase contracts will be exchanged by Solicitors and a timescale for payment is agreed, which will usually include an interim payment of between 10 and 20%.

The final balance including taxes is paid when full and clear title is transferred to the buyers. Existing furniture, fixtures and fittings may be purchased at this time or disposed of subject to the terms agreed in the purchasing contract.

New Build Purchases from Developer.

A reservation deposit secures the property at a fixed price. Deposits vary but generally are around the €5000 mark. Legal checks will take place to make sure that details are correct as advertised and that the developer meets certain legal requirements while delivering an appropriate bank guarantee.

An interim payment, generally 40% (or 2 x 20%) of the total price will follow within an agreed timescale.

The final balance of funds and taxes are paid at an appointed Notary when the full and clear title is handed to the owners upon completion.

Utility contracts are created at completion along with certificates of habitation. The full legal process is completed on behalf of all parties.

Making sure everything is legal and correct.

Total legal due diligence is carried out in all cases. This must be completed before any money is exchanged in order to protect the purchaser. This is processed by our own legal team consisting of a trusted local solicitor panel who act completely independently. However, we invite our purchasing clients to engage with their own solicitor if they wish to do so as all property we offer to our clients is fully compliant with Spanish law, completely secure and in the case of new-build homes, hold a full bank guarantee. There is no reason to deviate from this approach and we will never do so.

Our legal team is available answer any questions you have about the buying process long before a viewing/buying trip is agreed. Please feel free to request this service from us.

Arranging a Mortgage

The recovery experienced in recent years has brought a competitive element back to the Spanish mortgage lending market. All mortgages are of course subject to one´s financial status but most UK residents are able to secure funding providing they have a decent credit score and can provide the following documents:

Most recent P.60 (employed) or most recent tax return (self-employed)

Last 3 months bank statements to show income

Proof of address (A utility bill will suffice)

Experian credit report

Generally banks will offer a 60% LTV (higher in some cases )with a fixed interest rate of between 1.99%* and 2.49% (March 2020) for the entire term of the loan which can be up to a 20 year repayment period.

* The rate of 1.99% is subject to taking life and home insurance from the lending bank.

Will I be able to rent the property I purchase out to gain income?

Please download our special guide to property rentals in Spain to find out more.

When should we begin viewing properties?

Once we have discussed your needs, wants and budget, we will narrow down your search to the best properties available and arrange viewings to suit you. It is worth planning ahead regarding potential funding options prior to property viewings to avoid the disappointment of finding your dream home only to find out that it doesn´t work financially. Our team of experts is available to all clients. Please don´t hesitate to engage with them

What should I do next?

You can get in touch with us so that we can start to work for you. With over 30 years of experience in this sector we know you will find us to be an invaluable partner and resource. A successful purchase is aided by team players with the same goal in mind. Choose Casas de Luxe to help you move forward and take away the complications on the road to finding your perfect home and a better life