Twelve months ago I purchased a property off plan with a developers ‘guaranteed mortgage’. I have paid the required deposit and stage payments amounting to approximately 27,000 Euros.
The development is now complete, but I have not been able to obtain a mortgage to complete on the property, due to affordability. The developer is aware of this.
I have been advised by my lawyer that the contract states that I should be reimbursed 50% of the deposit / stage payments, but this is at the developers descretion! I am not able to check the wording of the contract, as I don’t speak sufficient Spanish.
Has anybody any experience of this situation and can they comment on the likely outcome?
A Majority of spanish banks are not giving 70%. Some will, but you will clearly have to show you are a safe bet.
The danger/opportunity for you, is that your property will need to be valued. If the value is higher now, you’ll find getting the mortgage easier, whereas if the valuation is lower now, you might require more than 70% mortgage to complete…