Recently LCPSpain have been selling quite a lot of bank repossession villas and apartments. Since the improvement of finances and cash flow for many overseas buyers and investors, the amount of mortgages being issued by the banks has increased greatly. A visit to any of the land registry offices in Marbella or Fuengirola will show you just how busy the Spanish property market is.
While the heady days of 100% mortgages ‘at the drop of a hat’ are long gone, many overseas buyers can avail of minimum 50% mortgage. In some cases up to 70% depending on proof of ability to pay. Mortgages on bank repossessions tend to allow an even higher percentage of borrowing as the banks keep to turn these properties over to t positive on their balance sheets!
In general, it is easier to get a mortgage on a bank repossession and also the banks tend to give better terms. The rule of thumb in mortgages for non-residents is 50%. With bank repossessions, this percentage tends to be higher. The downside is that many repossessed properties have been stripped of many fixtures and fittings that are usually found in resale properties. It is not unusual to find that the previous owner has removed lights, curtain rails, shower doors and even air Con units before handing the property back to the bank. Extreme cases have even had windows removed! Always make sure you check out the property, either yourself or by a trusted agent.
As we have already mentioned, the Banks tend to loan a higher percentage of repossessions. They also tend to provide far better terms over the period of the mortgage. The days of the unfair ‘Floor tax’ are now gone and Spanish Bank Mortgages are a much more customer friendly animal than before the Property Crisis.
It’s always good to do your homework when buying any property, but especially with a repossession.
Some things to make sure of
If the previous owner didn’t pay the mortgage, it’s likely that there may be other debts against the property. Always make sure you work with a trusted legal team to ensure you are not liable for outstanding community fees, local government taxes ( I.B.I) These debts should be covered by the bank, but it is your responsibility to make sure. After you own the property, you don’t want any previous owner’s debts surfacing.
If the property is in bad condition it would be a good idea to have a technical architect to take a look.
If the property is an unbelievably low price, there is probably a good reason. Check out how much you will need to spend to get the property back up to standard. Some properties just need some cosmetic restoration and to be furnished. If you need to buy new wardrobes, air con, windows, and doors, it can all add up to a hefty kit out a bill. Again, we advise doing your homework or getting LCP to do it for you.
Bank repossession purchases can be a great deal, providing, as with any property purchase, you do your homework first. It can be an excellent investment.
Talk to us here at Legal Costa Properties and allow us to guide you through the deals that don’t always appear online.
You will need to act fast on the best deals as when it is a real bargain, they go fast.
We work with various banks and are regularly informed of the latest properties released by the courts to the banks for sale, Especially in the Marbella area. Many have been in a limbo since the crisis and are now available for sale. Costa Del Sol Properties for sale now include many excellent quality repossession options.
A good start is to drop us an email with some of your details, what your budget is, what are you looking for? A beachside villa or a 2 bedroom apartment? Having the required documentation already in place can give you a head start on a swift decision when the right deal comes along. A current Tax clearance certificate, Proof of earnings, Bank statements, maybe even keep some funds in our Spanish bank account to do a holding transfer.
Do you have your NIE number? You will need it to buy a property in Spain.
The team here at LCP will let you know when suitable properties come up for sale.
Avail of our Live Video service if you can’t make a viewing in person.
Work with our mortgage advisors to get the best terms for your purchase.
Then use our recommended builders to bring your property back up to normal market prices.
When we say ‘Everything you need for your property in Spain’
We mean it.
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The unexpected crisis caused by the coronavirus has brought the real estate recovery stage that started in 2014 to a halt. In the coming quarters,