No mortgages on rustic properties!

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This topic contains 8 replies, has 5 voices, and was last updated by Profile photo of Inez Inez 7 years, 8 months ago.

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  • #54897
    Profile photo of Anonymous
    Anonymous
    Participant

    I had a chat with my bank manager this morning, and it seems like mortgages are currently not available on rustic property. He was of the opinion that this was common amongst lenders at the moment.

    Seems a bit of a strange position, there must be massive quantities of rustic properties for sale, if this situation persists, sellers of these properties are really going to be in trouble!

    I’d be interested to hear if anyone has any insight as to why this is currently the position, and also if it is likely to continue.

  • #91458
    Profile photo of Anonymous
    Anonymous
    Participant

    @El anciano wrote:

    I had a chat with my bank manager this morning, and it seems like mortgages are currently not available on rustic property. He was of the opinion that this was common amongst lenders at the moment.

    Seems a bit of a strange position, there must be massive quantities of rustic properties for sale, if this situation persists, sellers of these properties are really going to be in trouble!

    I’d be interested to hear if anyone has any insight as to why this is currently the position, and also if it is likely to continue.

    Sorry for my ignorance, what is the exact definition of a rustic property?
    Raw land? Houses in secluded positions?

  • #91459
    Profile photo of Anonymous
    Anonymous
    Participant

    I think it is defined on the escritura. If it says rustico, then that’s a problem at the moment as i understand it.

  • #91463
    Profile photo of Inez
    Inez
    Participant

    At best you could only get a lower percentage on rustic, I think to 50% (I can confirm that after talking to my guy)

    I havent heard all banks have pulled mortgages on them, I suspect the odd bank will still do it as every case seems to go on individual inspection!

  • #91472
    Profile photo of Anonymous
    Anonymous
    Participant

    To Anciano:

    I read about your problem and I must said, as your banker said, that mortgages are not available on rustic land. But as much as I know never has been possible, it’s not a moment problem.

  • #91511
    Profile photo of Anonymous
    Anonymous
    Participant

    I was aware that mortgages were available in the recent past on rustic properties, maybe up to 70%. Land seemed much more difficult.

    However, it does indeed look as though mortgages on rustic properties are very difficult to find, and maybe to a maximum of 40% of valuation. I am still looking into this.

    Anyway, I just wonder what this will do to the value of all those rustic properties on the market. I know of dozens, all reduced by around 30%, but if realistic financing is not available on these, then I guess they will drop like a stone! Considering this, I think it is a brave buyer who takes on a rustic house these days.

  • #91514
    Profile photo of Anonymous
    Anonymous
    Participant

    @El anciano wrote:

    Anyway, I just wonder what this will do to the value of all those rustic properties on the market. I know of dozens, all reduced by around 30%, but if realistic financing is not available on these, then I guess they will drop like a stone! Considering this, I think it is a brave buyer who takes on a rustic house these days.

    You can always tell those owners how much money you have available. Some will prefer the bird in hand instead of the one on the fence…

  • #91516
    Profile photo of katy
    katy
    Spectator

    I think the reason why the banks won’t lend on rustic is because there is a question of illegality on so many thousands of them.

  • #91521
    Profile photo of Inez
    Inez
    Participant

    My guy says there are banks still lending on rustic and up to around 50%.

    However each case is different and a rustic property on an urbanized development is different to rustic up the mountains in the middle of nowhere!

    Hence each case is different.

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