Mortgage in Spain
Mortgage in Spain is very popular, very convenient and well developed, it allows you to buy a house without paying immediately its full cost. to buy or build real estate, many banks in Spain are ready to provide a mortgage (secured by this property). The procedure for real estate registration takes an average of two to four months. One of the main stages is getting a mortgage loan in Spain. When you take out a loan, the amount of credit leaves 50-60%, and sometimes up to 65-70% of the appraised value of the object. The usual period of credit is from 10 to 30 years and depends on the borrower’s age. It is also possible and early repayment of the loan.
The size of the initial payment reaches 50% for non-residents, and for residents it is 20%. Relying on the year 2016, the average mortgage rate in Spain is 3.5-4% per annum.
The number of Spanish banks that grant loans to foreigners includes BBVA, Unicaja, Caixa Catalunya, Caixa de Girona, Caja Madrid, Banco Andalucia, Deutsche Bank, Banco Popular.
To buy residential property in Spain, not one Russian bank does not provide a mortgage. However, you can lend to almost all banks on bail already available real estate.
Important Points in the Spanish Mortgage Loan:
In order to issue a loan, you will have to open an account with a Spanish bank and put on it from 20 to 50% of the value of the property.
Most often, the loan is issued on the security of the property being acquired (to evaluate the acquired property, you need to hire an independent expert). His services cost an average of 400-500 Euros, paid by their borrower.
In Spanish banks, as a rule, there is a commission for early repayment of the loan.
Registration of a mortgage implies mandatory insurance of both the life of the client and the real estate object itself. Pay attention to the important point: for the borrower it is much more profitable and more convenient to make out insurance in an independent agency.
Also, the registration of mortgages in Spain is paid. For this service you have to pay about 1-2% of the amount received.
An additional waste is also the fact that 1.8% of the amount of the loan given to you will have to be paid for stamp duty.
The main stages in the process of issuing a loan:
a choice of a property and a bank that is ready to lend you.
also evaluation of residential real estate (carried out by independent experts and takes up to two weeks);
collection of documents that confirm the financial solvency of the client;
all collected documents must be translated into Spanish with the help of an official translator;
provision of translated documents to the bank that issues the loan;
final coordination of mortgage loan terms;
notarization of the mortgage loan agreement.
Making a mortgage in a Spanish bank is not a very complicated procedure. However, the people who conduct this operation for the first time have quite a lot of questions. In most cases, they concern the execution of documents.
List of required documents:
valid international passport;
a certificate from the workplace indicating the salary and position (provided on the company letterhead and certified with the seal and signature of the manager);
certificate of personal income tax for the last three years;
an extract from a foreign or Russian bank that confirms your solvency (sometimes it is permissible to provide a letter with the guarantee of a servicing banking organization);
certificates of ownership of real estate in Russia or other countries (home, apartment), confirming the solvency of the borrower;
A certificate confirming that the borrower does not have other loans (document from the mortgage history bureau).
Some banks additionally ask for a tax return or some document on the absence of tax arrears for citizens of the CIS and the Baltic. . Of course, the banks of Spain always guarantee the confidentiality of the information you provide.
Features of buying different types of real estate
Purchase of land
The land in Spain is a very tasty piece for investing. The purchase of a land plot is easily accessible to any foreign buyer, so that any natural or legal person can acquire land in personal property a piece of land.
Obstacles in the acquisition of a piece of land in Spain, you will not, because the Spaniards willingly grant their possessions to foreigners on terms that are indigenous people.
However, even if you have a full sum for buying a long-awaited purchase, you need to have a little patience, as it is necessary to clarify all the nuances. You will need to decide what assignments the land will be used for. Also it is worth to study information about any restrictions, the availability of infrastructure, communications and other issues. Becoming the owner of a site on which trees grow, you can not cut them out without permission. Also, you can not build less than a hundred meters from the coastline.
In Spain, almost all the land is privately owned. The plots are sold and can be used for further development. It should be noted that if after the purchase of land in the next year is not expected construction, then this site is subject to taxes and notarial embezzlement.
Equally, we must pay attention to the fact that if you decide to change the status of your home from a dwelling to a public (cafe, hotel, etc.), you probably will not succeed. Also, the law of Spain divided the land into two main types: for agricultural purposes and for construction. That is, the building permit is not given automatically with the purchase of land.
Housing under construction in Spain
In our time it is very important to have your home abroad. Moreover, each of us dreams of building a house and living in it with his whole family. Of course, the quality of living in a private house is different from a city apartment. Having your own house, you have a personal space, more environmentally friendly air, etc.
Individual construction of houses in Spain is developing every year, and more and more is a promising direction. Own landscaped territory, home comfort and coziness with the family – all this you can buy soon, having built your own home in Spain.
What about the under construction real estate in Spain. New real estate in Spain is an excellent investment of money AND OPPORTUNITY, not only to have a rest, but also to EARN. Any real estate on the azure coast has a high rental potential, especially in those regions where the season lasts up to ten months a year. The big advantages of a new building are that you buy an apartment with all amenities, modern planning and repair, as all these conditions are included in the price of the primary real estate.
The banks of Spain provide their services in providing loans for real estate under construction, this gives you a small guarantee in the acquisition of real estate.
If you are planning to buy a new building in Spain, then it is better to do it with the help of a real estate agency that will be the guarantor for you (for example, from a legal point of view). It is worth paying attention to the fact that there are different stages of construction, starting from the stage of excavation, and ending with already ready to move in housing.
Our real estate agency CHUDESNIY works only with trusted developers in all regions of Spain. And we guarantee to our customers 100% protection from any form of fraud or unfair construction.
When buying a new property, you should pay attention to the legal aspects, examine and verify the documents properly, or to entrust this task to lawyers. Foreign buyers are unlikely to be invited to sign a private contract for the purchase of real estate without any prior payment, since there is always the likelihood that the foreigner will not come again to the country, or will not come out to the deal. Usually the deposit for a new property is 10% of the value of the property.
For example, if a representative of the transaction (seller) refuses, a deposit in a double amount to the buyer must be paid. If the buyer refuses the transaction, the deposit remains with the seller. Thus, the possibility of avoiding the transaction is, but for both parties the exit from the transaction becomes expensive.