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| Frequently Asked Questions |
FINANCE |
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| How do I get finance to buy the property? |
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It is possible to raise finance to assist with the purchase of a property. This can be done by obtaining a mortgage either from a Spanish bank or from British lenders. |
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| What documents would you need from me? |
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To apply for a Spanish mortgage you would require proof of income and if you are self-employed you would need 3 years' audited accounts. |
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| What are the average interest rates? |
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| Spanish interest rates are generally lower than UK rates. |
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| What are the total costs involved in getting a mortgage? |
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| The setting-up costs are approximately 3% - 4% of the amount borrowed. |
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| How do I open a bank account? |
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| All you require is your passport; there is no need to deposit any money when opening a Spanish bank account. |
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| How do I transfer money into my overseas account? |
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You can make transfers direct from your UK bank to your Spanish bank account; this could take 3 to 5 days. Or you can use a commercial foreign exchange company who may be able to offer you more competitive rates and quicker transfer times. |
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| How can I secure an exchange rate? |
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If you use a foreign exchange company you will be able to secure a rate for the total amount you require by paying a deposit. This enables you to calculate the sterling cost of the property and eliminates the risk of rate changes which could lead to the property costing you more in sterling by the time you complete. |
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GUARANTEES |
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| Is a survey carried out on the property, structure and foundations? |
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If you are buying a new build property there will be a 10-year builder’s guarantee and a certificate from the architect.
If you are buying a resale property a survey is not carried out to check the condition of the property; however, this can be done in addition if you wish. |
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Are the new properties normally finished on time? What are the builder’s responsibilities if they do not finish on time? |
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| If the delay is longer than 4 months you are entitled to compensation. |
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| What guarantees are there from the builder or developer? |
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Bank guarantees or insurance policies should be arranged when paying any monies for a property under construction. There are statutory provisions for the builders to guarantee the payments for the property whilst building is in progress up until the time it is completed (Spanish Laws L38/1999 & L57/1968). After this the property has a guarantee against any building defects for ten years. |
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| What would happen if the builder were to go bust? |
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If the builder goes bust and you have a bank guarantee in place you will have your payments refunded; if you don’t have a bank guarantee then you will lose your money.
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