Terms of property sales and mortgage advice and tips in Catalunya

Catalonia mortgages

If you are thinking about spending more than ninety days a year in your new residence, you may find it difficult in the UK to find a low cost lend for your financing needs. Our estate agency and property finding service is now long established and respected throughout Catalunya. We now have connections with some of the larger banks and independent mortgage brokers throughout the region that will provide our clients with a personalised service offering a wide range of products and services, which can be adapted to your requirements and expectations.

Mortgages and remortgages are now available through the banks on either urban or rural properties and they are now offering mortgage plans specifically designed for European residents and non-residents of Spain.

In most cases you will be obliged to set up a Spanish bank account.

An example of this is:

Finance up to 85% of final valuation

25 years to pay off the mortgage

Initial interest rate (6 months) = 2.95%

Revision each year

(Please note that each individual case needs approval of the bank's committee and will be subject to status)

All properties will require a valuation, the cost of which is determined by the valuation received from the surveyor. This must be paid at the time of the valuation and is not added to the mortgage.

The mortgage will be offered depending on your particular circumstances. If you are purchasing a property in an urbanisation or in a town the criteria for loan to value is:

Spanish national: 80% loan to value

Non-Spanish Resident: 70% loan to value

Non Spanish Resident living permanently in Spain: 80 % loan to value

The maximum term of the mortgage is 30 years. If you are under the age of 60 and in good health you will be required to purchase life assurance to cover the amount of the mortgage. If you are aged over 60 or in poor health and resident in Spain, then you would be required to take out accident cover.

If you are purchasing a plot of land with no dwelling on it then the criteria is a maximum of 50% loan to value over a maximum term of 15 years.

If you are purchasing a finca with either a small or large dwelling on it then the maximum loan to value is 70 % up to a 30-year term.

The maximum loan is calculated at 40% of the gross annual income.

If your mortgage is agreed the money will be paid into your Spanish account minus the following charges: Valuation fee, Notary and Gestoria fees and the Bank fee.

VERY IMPORTANT:

THE DETAILS SHOWN ABOVE ARE ONLY APPROXIMATE AT THE TIME OF PUBLICATION AND MAYBE SUBJECT TO CHANGE. FULL AND UP TO DATE DETAILS WILL BE PROVIDED AT THE TIME OF APPLICATION FOR A MORTGAGE. YOUR HOME OR LAND IS AT RISK IF DO NOT KEEP UP WITH YOUR REPAYMENTS.

Other legal terms of sale

• Further photographs and details may be available for some of these properties
• All properties offered for sale have been researched and title deeds examined
• An English translation of the title deed can be made available to the purchaser at a cost
• We offer assistance with local architects and builders if required
• Viewing is accompanied and only by prior appointment
• A minimum deposit of 10% is required to secure any property of your choice
• To remove a property from our listings (taken off the market) we require a non refundable fee of €1000. This will then act as a bond of trust for you as the client to make arrangements for the deposit to be paid via bank transfer (10% deposit less the 1000 euros)
• It is normally required that after a property is taken off the market a deposit payment is received within 10 working days from the date you return back to the UK.
• All transactions are carried out in the office of our local Notary if possible
• Legal fees are in addition to the purchase price and would not be less than 10% of the declared purchase price. However in some cases the Notary's minimum charge will apply.
• Local accommodation can be arranged on your behalf
• We will assist you in opening a Spanish bank account. You are required to have a Spanish bank account to complete the sale, therefore this must be opened while you are in Spain and allow at least 1 week for transfer of funds.
• Any currency transfers that are carried out should be in Euros not Pound Sterling. We are agents for several currency transfer companies who may be able to offer you more competitive rates. Please ask for details
• We will assist you in obtaining your N.I.E number. This must be applied for before you complete the sale and will take approximately 2 weeks to be completed.
• We will assist you in registering the property in your name in the Catastro.
• We will negotiate with an architect or builder you may choose to employ if possible
• In all cases, our help and assistance is just a telephone call away
• We will assist you with introductions to other services including solicitors, legal advice and assistance.
• In some cases a mortgage can be arranged on the property. We can introduce you to a local mortgage advisor who can assist you.

Very Important

The details shown above are only approximate at the time of publication (both online and traditional publication) and may be subject to change. Accurate details will be provided at the time of purchase. A Notary will be used for the legal transfer of the title deeds only; we therefore recommend that all clients seek independent advice from a solicitor.

Contact us directly if you are unsure about anything at all, we are here to help.