Posts Tagged ‘Murcia’
This blog will be providing you with tailored advice on how to avoid these pitfalls when buying or selling property in Spain.
The Spanish property market has been through a turbulent period over the last decade. EU Property Solutions work with borrowers assisting them out of difficult situations often not caused by themselves as they fell victim to the Property Crash.
The 2007-2008 crash has led to people looking to sell and get out of the property burden and those looking for a bargain investment.
We have a few pointers if you’re considering buying or selling a property in Spain.
Price the Property to Sell
- The property market in Spain has masses of supply currently, especially in the British/Foreign investor market.
- Your property needs to be priced to sell, or it will sit on the market for a long time.
Will you clear any outstanding mortgage and debts?
- Will your sales proceeds (sales price less costs) clear your outstanding mortgage?
- Do you owe any debts for IBI taxes or Community Fees?
- If you do not clear the mortgage your lender will not release their charge on the property and the sale cannot complete.
- 3% Capital Gains tax if you are a non-Spanish Resident.
- Estate Agent fees are 3-6% of the sales price.
- Energy Efficiency Certificate typically €150-€300.
- Plus Valia Tax – this is a local tax on the increase in the value of the rateable value of the land.
- Legal conveyancing fees
- Land Registry Fees
- Notary Fees
- Income Tax Provision when purchasing from non-residents.
- Bank fees for money transfers and mortgage fees.
Future Costs of Ownership
- IBI Taxes
- Community Fees
- Non-resident tax
It all adds up.
Understand what you are buying.
- Research is essential
- Is your mortgage affordable in the long term? Does the rate change?
- What rental yield can you achieve – be careful if you have been promised a yield. These often don’t materialise.
Brexit and your registrations.
- Have your NIE number ready well before starting the purchase process
- Open a Spanish Bank account well before the purchase process.
- Brexit implications for use of property need to be understood.
If you’re interested in hearing first-hand from our Chairman Terry Bell elaborate on any of the above, you can sign up for our free webinar that we’re hosting on Thursday 16th September at 6PM ‘FREE WEBINAR | Brexit and Covid-19 | What does this mean for property values?’ Click HERE to sign up!
PS: Don’t forget to visit our YouTube channel to access a full library of our free videos & webinars. CLICK HERE
There is currently a huge problem in Spain with ‘Squatters’ unlawfully occupying unused holiday homes.
With Covid-19 travel restrictions ongoing, many holiday homes across Europe have been sitting empty for over a year. This has made the likelihood of Squatters in Spain invading properties x10 times more likely than before the pandemic.
Squatters are moving into these empty properties, making it their home and fitting new locks. They also avail of the properties water, electricity, and bins; leaving property owners left with increased bills and bins which cannot be used.
In a recent interview with Ena Cummings, founder of GoldenKeys Property; squatters were described as “vile, evil beasts” who should be thrown out immediately. Unfortunately, due to Spain’s insufficient legal system, Community Presidents not taking action, Banks being irresponsible and the countries water and electric board turning a blind eye, therefore, this means that property owners are left to deal with these squatters themselves.
In Ena’s community, there are 8 squatters who not only have moved into the development but have displayed public indecency. They have thrown bleach and wine at homes on top of stealing water, electricity, and their bin facilities. Ena expressed that the community wanted an AGM with the community presidents.
“It was arranged in 2019 to get the removal mafia in from Madrid. This was to remove the squatters, to get a loan, and pay it through our community fees (which was agreed.) But our two so-called presidents won’t sign the forms as they don’t want to throw people out on the street.”
The only guaranteed way to get squatters removed from a property is to hire a removal mafia from Madrid. This comes at a fee of €5,000. The other option to protect an empty home is to pay €35 a month for a photographic alarm system. The alarm system will notify the Guardia Civil who can throw them out within 48hrs. Nonetheless, both options add further expense to unused holiday homes in Spain.
Ena is adamant that “Spain needs to change their law, but it’s going to get worse before it gets better.”
If you have an unused property in Europe that you no longer can maintain, this is your time to act before squatters make your home theirs!
If you would like to dispose of your foreign property, there are options available for you to do so. Get in touch with EU Property Solutions today and speak with our specialist team for your FREE consultation.
Are you in Negative Equity and do not understand the meaning?
Sort out your Spanish property issues today! In simple terms; Negative Equity occurs when the current loan or mortgage balance secured on a property is higher than the current market value of the property. Subsequently, some borrowers refer to them as Negative Mortgages.
For example, if a borrower’s current mortgage balance is €150,000; but a recent comparable property may have sold for €100,000 (before selling costs of c8-10%)…this borrower is in Negative Equity and faces a mortgage shortfall of €50,000+.
Such Spanish property issues/shortfalls are due and payable in full as and when the property is sold or disposed of.
EU Property Solutions have had contact with and helped many hundreds of people who purchased in Spain and across Europe at the height of the crazily inflated market, pre-2008.
These couples and individuals took out huge mortgages which were too readily available. These scenarios in turn later left the majority of mortgage holders in some form of financial difficulty. Leaving them exposed to an asset with falling value.
Many who still own a property in Negative Equity feel trapped. They are unable to move on, being dubbed ‘mortgage prisoners’ or ‘Stuck in the Sun’.
Furthermore, EU Property Solutions are experts in Spanish Mortgage Law; assisting borrowers who still suffer from a Negative Equity loan. We and our hand-picked legal teams work with all lenders across Spain. We can tailor our services based on your circumstances and lender.
A recent example saw us settle a Negative Equity position on a proposed sale of c€120,000 for £25,000 including costs. Genuine telephone testimonials are available to support our work.
Borrowers often bury their head in the sand. They face the very real risk of Spanish mortgage default or Spanish mortgage repossession. These scenarios can be life-changing and will expose your UK Assets and Income.
Dealing with the situation and acting now is key. EU Property Solutions legal team in Spain is ready to assist.
Don’t be a mortgage prisoner – let us find you a way out of this predicament.