Cash before Mortgage ?

[Anonymous]

May I ask is it possible to obtain a mortgage retrospectively.

We are interested in a property through a private sale, we would use a recommended lawyer and obviously proceed on his say so, but the vendor wants a quick sale and therefore wants to exchange and complete on the same day and if we can’t obtain a mortgage that quickly, is it possible to pay cash and then obain the money through the Building Society ? Or what is the best way to proceed

We have not viewed the property as yet.

Please excuse my ignorance !

[Anonymous]

Ambre,

There is no problem arranging a mortgage after you have bought, provided your credit profile is good enough to borrow the amount you need. How much you can borrow also depends upon the valuation of the property.

If you want a quick, expert opinion (and free, I might add), on how much you can borrow given your financial circumstances, then fill in the mortgage enquiry form which I will pass on to a good broker. No cost, no obligation.

Regards

Mark[/url]

[Anonymous]

Hi Ambre,

There is no problem having a mortgage in Spain after you complete. The only things I would suggest if you have a seller that wants a fast completion (every seller does!) is to take some steps to ensure you get a result that is good for you to. I would suggest that whatever happens you should start the ball rolling with a bank or martgage broker straight away and get a valuation. In my area banks can get a valuation within 1 week. This will tell you that you are paying the right price. The person may want a fast sale because prices are static or in some areas dropping and you can use the valuation to your advantage.

If you pay in cash dont get involved in under declaring the price. In other words you give some hard cash to the buyer and the rest thorugh the proper channels which is recorded on the deeds.

The problem with this, apart from the fraud side is that if you go for a mortgage in a few months time, the bank will see the recorded price in your deeds and may only give you a 70% mortgage of that recorded price and not a mortgage based on the true price that you really paid.

Lastly, if you do have the cash and make the purchase and then later get a Spanish mortgage please remember there are quite a lot of legal fees and charges involved in a Spanish mortage which can be quite a large amount of money, so if you can avoid the mortgage you would save several thousands of pounds.

Best wishes and good luck

Bernard

[Anonymous]

Mark, Bernard

Many thanks for your advice, the first thing I thought of when I heard the vendor wanted to exchange & complete on the same day was to hold back and wonder why, something wrong with the property ? wants to do a runner etc etc. So we will tread very carefully……..

Property only just gone on the market and he wants to sell in a couple of days !! Don’t a number of properties take years to sell ?

Fortunately, for a buyer, there are thousands of properties on the market so I confident we will find THE one

Regards

[katy]

I have bought and sold on the same day, no motive other than I wanted to take my pets direct from one house to the new one. It was very complicated though, our lawyer said it was the first time he had done that. We were all morning at the notary.

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