Here is a useful guide to purchasing a bank repossession.
Calculate your budget
How much do you want to spend on a property ? Remember you will need include the taxes and purchase costs in your budget.
Purchase tax (ITP) in the Valencian Community (Costa Blanca) is 10%.
Purchase costs (Notary fees, land registry fees, gestion) – approximately 1500€ . This varies with the property price and we can advise .
If you require finance, the bank is normally prepared to lend 70%, so you will need have enough capital for the other 30%, the tax
Example without mortgage:
Property Price = 100,000 €
ITP tax = 10,000€
Purchase costs 1500€
Total cost = 111,500€
Example with Mortgage:
Property Price = 100,000€
Maximum mortgage of 70% Loan to Value = 70,000€
Capital required for mortgage = 30,000€
ITP tax 10,000€
Purchase costs and Mortgage set up cost approximately 5000€
So to purchase a 100,000€ property with a 70% mortgage, you would need approximately 45,000€
Let us know how much capital you want to invest and we can calculate your maximum budget. It’s very important not to go over budget.
For more information about mortgages, visit this page: Mortgages
Finding a property
Browse through our website and call / email us for more information. Ask us for suggestions.
- Is the property for holiday or permanent living?
- Do you want to be in a Spanish area or an area with lots of other English speakers?
- Is it for investment? Holiday letting or Long-term rental ?
- How close is it to the airport, amenities, the beach, golf course etc..
Again, we are here to help. Ask us for our recomendations
NIE application and opening a bank account
If you intend to purchase a property in Spain, you are going to need an NIE numberand a Spanish Bank account. We can help you with both. It’s a good idea to get these two things sorted at the outset.
N.I.E. application – 50 € for the first person. 25€ for each additional person.
Help opening a bank account – We will help you with this, Free of Charge. To open a bank account the bank will need your passport.
If you intent to transfer Pounds to Euros, it’s a good idea to use a currency specialist. This will save you a considerable amount of money.
More about Currency Exchange…
Arranging a viewing.
Once you have found a property you would like to view, call us on (0034) 604 149 077 or email email@example.com to arrange a viewing. We’ll order the key for the properties that interest you and meet you in the locality of the property.
Viewings can be arranged on weekends if we have been given enough notice to arrange keys.
More about arranging a viewing…
8 day “Transparency period”
When the bank first releases a property or reduces the price there is a period of 8 days during which applications to purchase can be registered. If more than one party registers a purchase application, then those who have submitted purchase applications will be invited to bid for the property.
Sealed bids are submitted and opened by a notary.
Once the transparency period has finished and no purchase applications have been submitted the property can be purchased for the asking price.
PLEASE NOTE: Not everyone wants to go through the auction process. Simply let us know and we can arrange to show you properties for which the auction period has expired, meaning that the properties can be purchased at the asking price. Less fuss.
A 500€ deposit is paid which is refunded in full if you decide not proceed or if the bank rejects your purchase application.
The 500€ is paid by bank transfer (can be done from a UK account). We will need a copy of the transfer to submit your purchase application.
Once the purchase application has been accepted the purchase contract is then signed and a 10% deposit is paid within 8 days. The balnace is paid upon completion, when you take possession of the property.
We highly recomend that you consult a conveyancing professional.
Costs associated with the purchase
Finance – Non Resident Mortagages are available for normally up to 70% of the value of the property.