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Financing The Purchase Of Your Spanish Home

Purchasing trends change depending upon the current Financial stability of the markets,  re-sale property - (previously owned homes) are always popular due to the fact that there is no waiting, owners have often added extras to the property, they are often sold furnished and the infrastructure is already in place.  New build properties are most popular when the market is more confident, the developers start building again opening up new areas.  Buying a new build home gives buyers the opportunity to choose the location, orientation and interior finish of their property and they come with a 10 year Builders Guarantee. Resale property prices currently are the best/lowest they have been for years, making now the perfect time to buy!  The excellent exchange rates at the moment allows buyers to get so much more for their money giving them that extra buying power !  Now really is the Best Time to Buy !!!

So first thing to do before you start looking at property is to have your finances in place.  Only then will you know exactly how much you can spend and comfortably look at every property, comfortable in the knowledge that you can afford each and every one that we show to you!   (We will only show you those properties within your budget comfort zone!)

SETTING YOUR BUDGET - Financing Your Purchase

  • Purchase Price - (asking price of the property)
  • PLUS Purchase Costs - (It is good to budget approx 13%)
  • This includes 10% IVA (VAT) and approx 3% for Land Registry Searches, Stamp Duty, Notary Fee, Legal costs etc.
  • Setting a Budget will also be dependent on whether it is a CASH purchase or MORTGAGE
  • If you need a loan/mortgage there will be extra costs incurred, the amount will vary from the lender to lender 

    * This is to be used as a guide only as individual circumstances may differ

CASH or MORTGAGE ?

CASH PURCHASE
You should have immediate deposit funds available when you view a property.  You do NOT have to purchase but if you do fall in love with something at least you will be in a position to make an offer. 

The normal accepted deposit for a resale property is 10% of the purchase price.  We understand that you may not have this amount of money with you, therefore, a commitment deposit of between €3000 - €5000 is acceptable giving you time to bring your deposit to 10% once you arrive home.  The deposit will be taken at the solicitors office at the time of signing the Private Purchase Contract, importantly this will also remove the property from the market and fix the price in Euros!  

Depending upon the circumstances of the Seller and the Buyer a CASH completion can take as little time as a couple of weeks to finalize, normal completion time is approx 4-6 weeks.

NEW BUILD

When purchasing a new build property the developer will have a structured payment plan made up of stage payments, deposit, interim payments and finally the balance paid on Completion / Notary signing.


NEED A MORTGAGE

Financing Your PurchaseGreat News ! Spanish Banks are lending again ! Not only that they are actively encouraging us to borrow and looking for new customers.  Timing couldn't be better for us Brits, the £ post Brexit vote is not as strong as it was, maybe you think you can't afford that dream property any longer, not true, you can borrow Euro's here in Spain to fund your purchase in Euro's taking away the unknown future exchange rates.... borrowing euros now, there couldn't be a better time or option to fund your dream.

Act now Contact Us to arrange for our professional Mortgage Broker to give you a FREE NO STRINGS ATTACHED personal quote and advice.  With this information prior to your viewing trip you can have funding approved and help establish your budget to give you peace of mind knowing all you then have to do is choose your 'Place in the Sun'

And.... More good news ! Banks are lending a huge 70% so you don't need to commit too much of your funds to the unknown variable exchange rates.

N.B.  You will still need cash for 30% including your deposit plus approx 15% for taxes, costs and bank fees etc


DEPOSIT
Regardless of how you will fund your purchase you will still need a deposit !  The normal accepted deposit is 10% of the purchase price, we know that you may not have this amount of money with you, in this case a commitment deposit of 3000 to 5000 € can be paid.  This is done at the time of singing the purchase option contract and will remove the property from the market and fix the price.  This gives you time to bring your deposit to 10% once you arrive back home. 

IMPORTANT:
Keep an eye on the exchange rates! You can convert your currency into Euros ahead of a purchase sometimes saving 1,000's with the best commercial rates, therefore maximizing your purchasing power fixing the price you will pay.

EXCHANGE RATES CAN AND DO VARY FROM DAY TO DAY - IT IMPORTANT TO FIX THE ACTUAL PRICE OF YOUR PROPERTY IN YOUR CURRENCY BY CONTACTING AND REGISTERING WITH OUR CURRENCY EXCHANGE PARTNERS AS SOON AS POSSIBLE!  Currency Exchange Converter

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