Buying a property in Spain
The aim of this part of our website is to give you all the information you need to buy a Property in Spain. We would like to make the whole process as stress free and easy as possible. Lawyer’s fees are usually around 1% of the selling price. Keep in mind that circumstances change; you may buy a place in a quiet area, but you must think ahead a few years and be aware of any potential building projects that may affect your privacy or turn the area into a building site. Make sure you write down a list of your requirements so your estate agent can find a property that is ideally suited to you. The world is currently experiencing a credit crunch and Marbella is no exception. Full recovery may not happen for at least a few more years. The time to buy is definitely now as it is a buyers market. Marbella is the best place to live on the Costa del Sol, so any property purchase in the current economic climate can only mean a potential equity growth opportunity.
The Buying Process
Marbella Real Estate 5% commissions may also apply depending on the real estate agency. It is important to conduct due diligence on your property. Then, once the property has been investigated and no problems have arisen, you should be aware of any additional costs such as community fees, local town hall taxes (IBI) and rubbish collection. With our professional experience guiding you, the buying process quickly becomes less daunting and easy to understand. We explain to our clients a step by step process which will result in the completion of a successful purchase. The following is a basic explanation on mortgage concerns in Spain. Residents can borrow up to 80-90 % of the bank valuation for their respective property. In Spain, Non residents can borrow up to 60-70%. Mortgage loans generally last between 10 and 25 years, depending on the borrower’s age.
Marbella will be one of the first areas in Spain to recover as it has always attracted investors, as areas of established wealth always do. Currently properties in Marbella are very reasonably priced and some real bargains can be found. Your borrowing potential is calculated on the monthly repayments being one third or less of your overall monthly earnings. The balance of your purchase is paid and the title deeds or “Escritura” are handed over to you with the keys to your new home. By having a lawyer on your side before you start the search for your dream home you will not have any delays in finding the right home for you. Agent commission are typically around 5% – 10% of listed property price and paid by seller.
Marbella Real Estate 7% standard commissions may also apply depending on the real estate agency. It is important that you complete the due diligence on your new property at the Land Registry, this is done to make sure that the property is free of debts and charges. We can assist you with the changing over the utilities contracts into your own name and having a phone line installed Once your title deeds are registered then you can create a Spanish family WILL to protect your family and assure continued ownership of your new property for generations to come. If you wish to buy your property with a mortgage we can recommend the best deals currently available and advise you on translation services to the lawyer. After your offer is accepted the property is then taken off the market and the price is fixed based on your agreement with the seller through the agent.
All new urbanized land and new commercial builds fall into the 18% rate. Buying any property requires an understanding of the process involved, and this is even more important when buying a property in another country. A new registration of your property is then made by your lawyer under your name at the Land registry, usually within 5 days of completion but this can take up to 3 months to finalize.
A Stamp duty of 1% also has to be paid on properties if the seller is a developer. Be aware of prices in the area as well, do your own research and you will see that Marbella Real Estate has the best properties at the best prices to offer. As you can see, buying a house in Spain is a straight forward process if you have professional guidance and are safeguarded from making timely and costly mistakes. Marbella Real Estate has a proven track record, selling properties for years and we can assist you in avoiding costly errors and secure a smooth and trouble free property purchase.
Marbella Real Estate is fully aware of all legal requirements for property sales and purchases in Spain and we have an in-depth knowledge of the process envolved. Please visit our New Developments and Luxury Villas.