Help please – Buying my first apartment in Spain

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This topic contains 6 replies, has 7 voices, and was last updated by Profile photo of Anonymous Anonymous 3 years, 1 month ago.

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  • #57773
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi all. I’m buying my first ever property in Spain and need a bit of advice please.

    I’ve been bombarded with information from the estate agent but I don’t know how much I can trust him with the info as he wants to introduce me to various people (Bank, lawyer, etc) and I know it’s probably so he gets a cut (which I don’t mind) but wouldn’t mind a second opinion.

    Firstly. The property is in Fuengirola and is a studio in a large hotel complex (PYR if anyone knows it).

    I have a reasonable sized deposit, but will need a mortgage to complete the finances.

    I have been told that Life insurance is mandatory? Is this right? Would anyone know which is the best Bank to go to? Do I ‘need’ an introduction from him, or can I walk in on Monday morning and see someone?

    Secondly, I obviously will need a lawyer. He wants me to go to one he is recommending on Monday morning. Is this wise? Should I check these people out with any formal qualifications or association membership (Like the law society in the UK?)

    Finally the fees. I understand that I will have a 8% tax, a 1% mortgage set up fee, a 1% Lawyer fee and around a €200 valuation fee. But what other fees should I expect?

    Thanks all. I’m sorry with all the questions, but I feel a bit vulnerable having never done this sort of thing before. I am aware there’s problems in Spain at the moment and ackowledge this investment has some risk attached, so I don’t need the warnings please, just some advice on completing the purchase with the minimum of risk/costs.

    Thanks all.

  • #118117
    Profile photo of Anonymous
    Anonymous
    Participant

    I am sort of in the same position as you are, and so far I’ve learned:

    1) Never go to the estate agent for anything except to buy the house. Make sure that you don’t take their bank, lawyer etc. recommendations, for reasons of conflict of interest
    2) Life insurance is not mandatory. It’s just that the banks won’t give you a mortgage without it.
    3) Re-mortgaging a UK property and paying in “cash” will save you hundreds of pounds each month.

    D

  • #118119
    Profile photo of katy
    katy
    Spectator

    Sound advice Daryl 😀 First of all, find a Lawyer, don’t be rushed into anything.

    This one has been highly recommended on here by a few people.

    Ley 57 Abogados
    Contact: Carlos Cómitre Couto
    T: +34 951 775 253
    E: info@ley57.com
    http://www.ley57.com

  • #118126
    Profile photo of Anonymous
    Anonymous
    Participant

    All sound advice above, whatever your estate agent may tell you.

    Take your time, do your research. Property prices are still falling in Spain, regardless of what your estate agent may tell you. You are therefore in no hurry to buy.

    Read this book: http://www.amazon.co.uk/You-Law-Spain-David-Searl/dp/8489954410

  • #118127
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi, I agree with former advice:

    -No rush
    -Estate agent only for buy, his “recommended” professionals could work with him, the problem is not that the Estate agent gets a cut, the problem is when the lawyer does, in this case who is he working for?
    -You can go to any bank you want, and you do not need any introduction.
    – Life insurance is not mandatory, but banks require it ( they assure money, and earn money selling the insurance)
    – The other cost you could expect depend of the amount of mortgage, if you are going to attend to the completion, and the Notary and Registry fees( about £1000), I suposse you have a NIE, if not you have to get it.
    – Do not sign any contract if you have any doubt!! I suggest to ask a Lawyer first.

    But the best tip is think quiet, not while the Estate agent is speaking and speaking, if you have to come back home, do not worry, the whole process can be done from UK,I am a Spanish Lawyer based in UK are regulated by the SRA and the Bar of Madrid, and recommended by the Spanish Consulate in Edimburgh.

    So If you want more formal information, I will be very happy to help you.

    David Lorenzo-Spanish Lawyer UK
    Foreign Law | Birchall Blackburn
    dxlorenzo@birchallblackburn.co.uk
    http://www.spanishlawintheuk.co.uk

  • #118128
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    Hi, I’m an agent, so take the following however you want

    @audi321 wrote:

    Hi all. I’m buying my first ever property in Spain and need a bit of advice please.

    I’ve been bombarded with information from the estate agent but I don’t know how much I can trust him with the info as he wants to introduce me to various people (Bank, lawyer, etc) and I know it’s probably so he gets a cut (which I don’t mind) but wouldn’t mind a second opinion.

    Could be. normally they are getting a cut, the prices of their people are higher, so easy enough to check.

    @audi321 wrote:

    Firstly. The property is in Fuengirola and is a studio in a large hotel complex (PYR if anyone knows it).

    I do. Can offer a decent return. makes sure they have informed you of the community fees, etc…

    @audi321 wrote:

    I have a reasonable sized deposit, but will need a mortgage to complete the finances.

    I have been told that Life insurance is mandatory? Is this right? Would anyone know which is the best Bank to go to? Do I ‘need’ an introduction from him, or can I walk in on Monday morning and see someone?

    You can go an see any bank you want. I assume you need a substantial % of the price? Most banks in Spain will give 10 to 40% without a problem. IF you are looking at 60/70/80% and the agent can recommend a bank, its worth looking into. You don’t have to accept the banks offer.

    @audi321 wrote:

    Secondly, I obviously will need a lawyer. He wants me to go to one he is recommending on Monday morning. Is this wise? Should I check these people out with any formal qualifications or association membership (Like the law society in the UK?)

    Normally most people would say don’t. But its down to you. its pretty easy knowing if a lawyer has a dubious reputation. type it in on the internet.
    Believe it or not, agents don’t only recommend the bad lawyers!

    @audi321 wrote:

    Finally the fees. I understand that I will have a 8% tax, a 1% mortgage set up fee, a 1% Lawyer fee and around a €200 valuation fee. But what other fees should I expect?

    Transfer and registry costs for the purchase aswell.
    1% lawyers fees seems a bit high, although based on the prices in the PYR a flat fee would be a similar figure
    [/quote]

  • #118527
    Profile photo of Anonymous
    Anonymous
    Participant

    If you have any law firm near you than try to contact with them because they work on behalf of you and you can easily get all the solution of your legal problems there.And they charge you low rates for their services also.
    Need Legal Help

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