Overseas property advice

Spain now has millions of Brits

Did you know over 700,000 British people live either full or part time in Spain on top of this millions more visit Spain for holidays . So what is the real attraction of Spain? prices are not the cheapest around and some of the coasts are now full of cranes and high rises.  I would like to hear your views on the reasons why Spain remains the UKs most favoured destination for buying property abroad.      

Spanish property and the buying process

Spain and France have long been the regions of choice for millions of of overseas property buyers. Both markets offer a variety of landscapes and regions within their borders and a huge choice of properties to buy. Spain is seen as a safe place to buy property by the older generation looking to retire abroad. In fact it is the UKs no.1 retirement destination. It is an established overseas property market however this does not mean that it has not had its problems. It almost goes without saying that these details of the buying process must be regarded as a general guide and no substitute for specific legal advice .

With an ever-increasing number of international investors, the mortgage market in Spain is highly active, with more than two hundred local banks offering home loan products in the country. Your mortgage loan options will greatly vary, depending on the type of property and the purpose of buying it. Usually, the lenders offer loans up to 70 percent of the property value, which is the maximum permissible loan as per Spanish laws. While most lenders may not lend beyond three times your income, a few international institutions such as Barcalys Bank may consider offering four times individual income. Lenders prefer customers with steady employment. Before setting out to invest in a property in Spain, it is imperative for buyers to understand the intricacies involved in the buying process.

To purchase a property in Spain, you need a ‘NIE' number or a taxation identification number. It is crucial to obtain this number, since it is required for all the formal proceedings of property purchase. You can obtain this number with the help of a Spanish solicitor, by giving him a power of attorney. Make sure that the solicitor has your best interests in mind when working for you. After selecting a suitable property, you need to sign a ‘reservation agreement'. At the time of signing this agreement, you are required to pay an amount around one or two percent of the property value. The vendor in turn, officially withdraws that particular property from the market, to enable your solicitor to proceed with other formalities, beginning with ‘land registry checks'. After confirming that the property has a clear title and there are no outstanding debts on the property, the contract of sale is signed by the concerned parties. Upon signing, you are generally required to pay about 10% of the agreed amount as deposit.

For off plan property, you should make sure that your builder gives you a copy of the insurance cover or the bank bond, to safeguard your investment in case the builder fails to complete the project. After completing other formalities, the concerned parties, their lawyers and bank representatives, in case of a mortgage loan, go to the public notary's office to sign the final contract, after which the title deed is transferred in your name. Depending on the type of property you wish to buy, the additional costs on your purchase will vary.

For new properties, a 7% VAT along with a stamp duty of 1% is applicable, while old resale property buyers pay only the 7% VAT. If you are buying land in Spain, you will have to pay 16% VAT and 1% stamp duty. Other additional costs may include land registry fees, lawyer's fees, notary charges and other extra charges, if you have obtained a mortgage.

Spanish property

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Spanish property good news all round

Spanish Tourism helping spanish property owners

Spanish property is set to receive a boost in exposure this summer, with figures showing that tourism in the Costa del Sol region is expected to reach a ten-year high. Juan Fraile, chairman of the Costa del Sol tourist board, said that the expectations for tourism are positive for the region and indicate that it is currently moving forward, according to the Sur newspaper

Halifax is helping Brits abroad cope in a crisis

Spanish property investors will soon be able to take advantage of a range of medical services through a bank account with Banco Halifax Hispania. The facility will offer a 24-hour health helpline and connection for British expats to an English-speaking medical consultant, who can offer advice or guide users to a nearby clinic or surgery. This new service, which will offer peace of mind to overseas property investors considering Spain, is based on concerns recently voiced by the Spanish Society of General Medicine.

Language barriers can be a danger

According to Overseas Property Professional, the organisation said that communication difficulties between expats and Spanish doctors could lead to "serious misunderstandings" as medics are trying to administer treatment. Ian Smith, head of European operations at Halifax, said that health problems can be worrying at any time, but the stress can be exacerbated by undergoing treatment in a foreign country. "Such services provided by the Banco Halifax Club not only overcome the language problem, but also provide reassurance to our customers during such times of difficulty," Mr Smith added. Halifax provides other facilities for overseas property investors, such as professional services in the form of plumbers, electricians, locksmiths and glaziers, as well as agency and legal services.

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