Why buy through Costasave?
We introduce you to an online database of competitively priced Spanish properties which you can virtually inspect from the comfort of your own home.
Because of our very low running costs, we are able to exclude agents’ commissions of 10% or more which can be costed into the sale price.
It is very important when considering buying a property in Spain that in addition to the purchase price, as seen in the website of any agent, you need to add a further 10% to the purchase price. This 10% includes the taxes for purchasing the property, the town hall tax, the solicitor and notary costs etc
You simply decide which properties you wish to come out and inspect, and we will arrange the introductions. We will find you somewhere to stay for the duration of your visit, and, in the event of a successful sale, guide you through all the formalities at every stage.
To inspect the properties, search the Costasave website here.
We at Costasaveproperties always recommend our purchasers and sellers alike to use a registered solicitor (abogado) to ensure a smooth transaction. Especially now in a time when laws and purchase procedures are changing significantly.
Upon deciding upon a property purchase you will need to secure it with a non-refundable holding deposit of €3,000 (which effectively takes the property off the market). If you withdraw at this stage you will forfeit all your deposit, but if your seller withdraws, he has to pay you back double the amount you have already paid.
The balance of the purchase price is paid at the time of completion at the office of the notary, upon signing the title deeds. At this time Costasaveproperties are also paid their commission, which would be 3,000 euros or 3% plus IVA depending on the price of the property and is paid by the seller from his funds.
Whilst surveys are not commonplace in Spain (unlike the UK), they can be arranged locally if required.
Mortgages
Anybody wishing to take out a mortgage in Spain should bear in mind that Spanish banks, led by Barclays Bank, are currently reducing their lending to a level of only 60% of their valuation figure (you must bear in mind that property prices have dropped significantly and bank valuations are very cautious). The loss of 100% mortgages should, in the long term, provide greater and much needed stability to the housing market over the coming years, with less likelihood of mortgagees defaulting on their payments.
Repayments are normally between 5 and 25 years, depending on age and circumstances, and usually by the capital repayment method.
When a mortgage is required, a survey is generally carried out by a valuation company on behalf of the bank. Mortgages in Spain are usually agreed much faster than in the UK, often within 4 weeks from application date. We would recommend that, if somebody was buying via a mortgage, when putting down the 3,000 euros deposit written into the contract is an agreement that the deposit should be returned in full if the applicant is unsuccessful in obtaining a mortgage. Most sellers would agree to this under the circumstances and in the current market it can be no fault of the purchaser, the bamks are going through a big transition period where lots of them are amalgamating and laws are changing which could affect an application, not at local level, but head office.
COSTASAVE WORK VERY CLOSELY WITH Barclays Bank IN SPAIN TO ENSURE A SMOOTH TRANSITION OF EACH MORTGAGE APPLICATION FROM START TO FINISH – FROM WEEKLY PROGRESS AND UPDATE REPORTS RIGHT THROUGH TO ENSURING ALL DOCUMENTS ARE IN ORDER ON COMPLETION DAY.
Spanish banks require proof of earnings, just like UK banks, when applying for a mortgage or opening a bank account and they will also require an up to date credit check (via www.experian.co.uk) which the client needs to bring with them to the bank. Rather unusually, this needs to be done in the UK by the mortgage applicant, as foreign banks are not allowed to do credit checks on people in the UK.
Finally, funds will ultimately need to be transferred to a Spanish bank account. Costasave work with Currencies Direct (www.currenciesdirect.com) who combine many years of experience with extremely competitive rates for currency conversion.
Transfer of Funds
We normally suggest you use currencies direct who will give you the most competitive rate. We can also save you the banking commission charge in Spain (0.2%) by directing you to a bank which does not levy this.
In the event of an abortive purchase by the purchaser the deposit will be non-refundable and is strictly adhered to in Spain. If the seller forfeits, they have to pay double the amount of the deposit to the purchaser. (Unless a mortgage is involved, then the contract states that the deposit should be refunded if the mortgage application is a failure).
OTHER INTERESTING POINTS
We would always recommend that the tourist information website is something you should look at. There is a lot of information about the area, transport, fiestas and all other activities.
SPANISH TUITION
Having gone through the purchase procedure of your new property, we suspect you may well consider spending some time learning some of the more important spanish phrases so you are able to make yourself understood in bars, restaurants and shops. There is spanish tuition available at all levels – conversational/grammatical depending on the amount of time you have available. We at costasaveproperties still manage an hour a week some spanish tuition for those of us not lucky enough to be been born in Spain and fluent in the language.
Having successfully carried out your purchase you may be planning to retire to spain and in need of an international removers. We have had for many years an association with B & E Removals Limited and they have regular deliveries to our part of Spain and are always very helpful and reliable.
One of the other things which can become costly when you own your own home in Spain is car rentals. The prices tend to go up and down as the seasons and economic climates change. Some people prefer to purchase their own car and keep it in Spain. Especially if you are planning to live here through the winter months and we at Costasaveproperties associate with Alicante airport parking (lowcostparking). These people offer a service which stores your car when you are out of the country, and valets it on your return and pick you up/drop you off at the airport.
THE ABOVE INFORMATION IS UP TO DATE WITH CURRENT LEGISLATION BUT LAWS AND PROCEDURES ARE CHANGING ALL THE TIME HERE IN SPAIN AND WE DO OUR BEST TO PASS ON THE CORRECT INFORMATION BUT CANOT BE HELD RESPONSIBLE SHOULD SOME OF THE ABOVE POINTS HAVE CHANGED WHEN YOU COME TO PURCHASE A PROPERTY. WE ALWAYS RECOMMEND THAT YOU INSTRUCT A QUALIFIED ABOGADO (SOLICITOR) TO HELP YOU TO COMPLETE YOUR PURCHASE.