Can I Truly Buy A Property In Spain??

By Author: Javier Melendez
Total Articles: 17
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The reality is that can get a mortgage in Spain as long as they can satisfy the following conditions:

Income - proof of your income could be employment documents (such as printed pay-slips) or proof of self-employment (such as company accounts), or some form of official tax declaration from whichever country in which you live.

ID - proof of who you are. A passport, a driving licence and your banking details will help to validate who you are and where you are from, especially if you are not a Spanish resident.

How Much Money Will I Be Able To Borrow?

The highest loan to value rate that you will be able to apply for as a non-resident will be eighty percent of the value of the house.

What Else Do I Need to Think About?

* You can to solicit a mortgage loan in Spain for any kind of residential property.

* It normally takes up to 1 month for successful mortgage applications to get approval.

* A Spanish mortgage will enable you to acquire a residence on mainland Spain or on the Canary or Balearic Islands.

* You will have to insure your property as a pre-requisite of your ...
... Spanish mortgage.

* The term of the majority of Spanish residential mortgages is between ten and thirty years.

* Nearly every Spanish lender will impose "fines" for early redemption. The amount of the penalty will likely be between 0.5% and 1.5%.

* Property valuations will be managed via your Spanish mortgage lender. You will normally pay the valuation fee before the valuation is carried out.

What Is Customary When Purchasing a Property in Spain?

As soon as you have successfully agreed on a purchase the entire buying process will last around 4 months.

Firstly you must pay a deposit against the property and sign legal documents called compra-venta. Your deposit will likely be approximately 5%-10% of the purchase value, and together with the compra-venta, will fix the purchase price.

Secondly comes the signing of other legal documentation such as the deeds (known as the escritura). The escritura needs to be signed by the buyer, vendor and witnesses. At this time you must settle the balance of the purchase and also pay taxes and other related costs.

Finally you will become formally validated as the owner of the residence at the Registro de la Propiedad (land registry).

If you intend to spend more than six months of the year at your Spanish property you have to apply for a residencia, which means that you will be able to travel without restrictions throughout Spain and also pay less tax.

Mortgage Interest Rates in Spain

Spanish lending rates are closely linked to the expectations of the European Central Bank and are also related to the Euribor (Euro Interbank Offered Rate): the currency of Spain's mortgage loans is the Euro, which is now the national currency.

If you are considering investing in a Spanish property, you could be in for a agreeable surprise. Traditionally, euro-linked mortgage rates have been lower than most other "foreign" interest rates, and Spanish mortgage interest ratesinterest rates are remaining stationary in spite of a slowing down of the Spanish property market. As a consequence, it could prove to be a great time to consider about buying your dream Spanish home!

A Few Words to the Wise

Please bear in mind that it is vitally important to instruct a suitably qualified solicitor to work for you when you purchase a Spanish property. If you can't understand Spanish, be sure that your solicitor is able to communicate with you (both spoken and written) in a language that you understand.