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Q,
If I purchase a property that is under development,
“off plan” what happens if the developer
ceases trading? Do I lose my money?
A, In Spain a new legislation has
been released and is now in action. ALL property developers
must provide full bank guarantees or insurance policies
when selling property. Both provide repayments of
all monies paid plus interest. Therefore NO you would
not loose your money.
Q,
What are the benefits of purchasing “off plan”
and new “key ready” properties?
A, Off plan and new properties come
with a full bank guarantee and a 10-year building
guarantee. Once you pay your 1st deposit the property
price is fixed, therefore in most cases once the property
completes it is worth much more. In some areas in
Spain such as the Costa Calida people have recently
seen up to 30% growth in 12 months. Of course this
also means if you wish to take a mortgage on completion,
it will be on the value of the property at that time.
Many investors often purchase “off plan”
properties to sell before completion purely due to
the high growth.
Q,
What are the benefits of buying a resale property?
A, When buying an established/complete
property the main advantage is, you can see exactly
what you are getting for your money. However you do
not receive a 10-year building guarantee, therefore
make sure you are happy with the build quality. From
an investment point of view or if purchasing for your
own use, you can use or rent the property straight
away. We can recommend a selection of management companies
who will assist with the rental and up keep of your
property, ideal for the “holiday home”
or “buy to let” market.
Q,
What legal costs do I pay if I purchase a property
in Spain?
A, We always recommend you budget
for 10% legal fees. This covers 7% IVA (Spanish Tax)
and 3% for stamp duty, legal costs and land registry.
Q,
Would you recommend a UK or Spanish mortgage?
A, The choice is yours. Spanish
mortgages currently have lower interest rates than
UK mortgages, and by having the mortgage in Euros
you will not be affected by changes in the exchange
rate.
Q, How do I
apply for a mortgage?
A, We can help you find the right
mortgage for you, depending on your requirements.
We can currently offer up to 95% mortgage. Once you
have found a mortgage the Spanish bank will then want
to see your earning as in the UK. You will need to
provide recent salary slips, bank statements and P60s
for every named person. If you are self employed you
will need to submit your most recent tax statement
and accounts for at least 2 years
Q,
How will I know I am doing everything legally?
A, Always employ an English speaking
Spanish lawyer to look over every aspect of your property
purchase. The laws and procedures in Spain are different
to the UK. We are happy to recommend a reputable solicitor
for you.
Q,
Do I need to be a resident to purchase in Spain?
A, Anyone can purchase in Spain
who is a resident of a EU country.
Q,
What annual running costs will I have to pay?
A, Annual fees depend on the type
of property purchased. GARY
Q,
What is the cost of living in Spain like compared
to the UK?
A, All together far cheaper! To
give you an idea here are some examples:
Bread 20p Milk 35p Red Wine £1.50
Petrol 60p Cigarettes £1.20
A meal for 2, including wine in
a lovely restaurant would only cost you approximately
£20.
Q,
Is there Spanish healthcare available?
A, Yes and it is free if you are
over the retirement age. Anyone else under this age
should have full health insurance.
Q,
What happens to my UK state pension?
A, Arrange for this to be paid into
a Spanish bank account.
Q,
How do I open a Spanish Bank account?
A, Very simple, all you need is
two forms of ID i.e., passport or driving licence.
Q,
Does Spain offer a good education system for my children?
A, Yes and it is excellent and again
free of charge. You will also find a good selection
of international schools if you prefer, tuition fees
vary.
Q,
Can I work in Spain?
A, Yes
Q,
Can I bring my pets to Spain?
A, Yes you must however provide
proof they have had the required vaccinations. You
will also need a pet passport if you wish to take
your pets back to the UK.
Q,
Do I need a Spanish Will?
A, Yes, this is very important.
Your solicitor will arrange this for you and we can
recommend a reputable one for you.
Q,
Will I need an identity card?
A, Yes Spain operates an identity
card system. You can obtain this from the police station,
just remember to take a photocopy of your passport.
You must carry this at all times.
Q, Do I need
to speak Spanish?
A, Speaking a little Spanish certainly
helps. If your moving to Spain we would recommend
taking a few lessons before you go and then continuing
once your out there. Locals always appreciate it if
you make the effort to attempt the basics.
You will be glad to know Spanish
is known to be relatively easy to learn and you’ll
pick it up in no time! However don’t worry if
you don’t speak any, as the locals will communicate
in English until you do know the basics.
Tip: - A phrase book is ideal!!
Q,
How do I arrange a viewing trip?
A, Simple, contact us on .........
If there are any questions
that we missed please contact
one of our team on 0870 803 4521,
we will always have the answer for you.
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