Mortgages in Spain

[Anonymous]

‘The number of new mortgages granted by Spanish banks in August fell for the ninth consecutive month……..

The mixture of higher interest rates and more expensive property has led to the market slowdown, with August now the ninth consecutive month to show a reduction in the number of new credits…..’
http://www.typicallyspanish.com/news/publish/article_13032.shtml

I’m surprised this article doesn’t mention the thousands of properties with no LFOs that people can’t get mortgages on, even if they want to. Would think this is a huge factor for the reduction in number of mortgages granted.

[Anonymous]

Suzanne

they are probably concerned about being thought of as ‘doom mongers’ if they present all the facts at once. I think there is still much denial going on about just how bad it’s heading, not least because of the potential damage possible to those trying to sell/rent, make a living etc.

[Inez]

And also its not cut and dried! for example Santa Maria, there are 3 banks who will lend although there is no LFO but this is because its minor infringements, not out and out illegality! If the development was on the 1986 PGOU then its ok – just maybe the developer made a mistake in his build, or has to place wheelchair access to the pool or something like that.

I just took on a commercial unit, no LFO but has openine licence from Mijas town hall as the builder has a couple of minor adjustments to make. Guy also has full mortgage on it.

Bit of a grey area but Im learning!

[Anonymous]

Inez

is anything ‘cut and dried’ in Spain? As soon as someone comes up with an example of how something works, someone else comes along and says ‘ah, but not always, it could be like this, depending on that’. Seems to be a mass of grey area’s where we so much need transparancy!

[Inez]

I know – and after living here nearly 13 years I now know the meaning of Manana!

Its either shrug the shoulders and say that, or KILL!!!!!!!!!!!!!!!!!!! 😈

[Anonymous]

Hi Inez 😉
Does minor infringements mean building a rather large development of apartments when in 86 it was supposed to be town houses. 😕
How about the odd extra apartment block on some developments where its deemed as O.K now. 🙂
Go on tell me that this minor infingement includes La Canada 😉
Next we will have the new terminal at Malaga without an L.F.O.
Now why is cynical me thinking that this government or local councils are delaying sorting this mess out by considering shoring up the coffers of a council that became bankrupt due to there own corruption.
Are they really thinking that to make developments legal they may charge us to compensate them for their crimes 😕 (think that will be taking the p–ss somehow me finks)

Frank 8)

[Anonymous]

so Inez have you moved into the commercial centre?

You’re right about the mortgages they are lending in our area even for Los Lagos

Regards

Paul

[Anonymous]

@p800aul wrote:

You’re right about the mortgages they are lending in our area even for Los Lagos

But at what price (risk) to the mortgagee? Los Lagos is a real risk. Green Hills not so much because it will get the LFO when the developers reach a settlement with the Town Hall, which is in progress.

Would the fact that there are very few buyers around make the banks desperate to lend? After all it is part of their bread & butter.

I have just read on another forum a post from someone trying to sell on La Reserva. Depressing reading.

[Anonymous]

I am aware that sometimes the mortgage companies will lend on the provision that the 1st technical report is favourable (technically after this it is just a case of stamping the Licence)

In theory though this only seems to apply to the Alicante/Murcia region.

[Inez]

They will here as well Rusty – it seems to be the banks making their own minds up as to what constitues an infringement!

Nope – havent moved into the commercial, Im playing it safe and renting a first floor unit used solely as offices and within a short walk to the beach at San Pedro (where the feria is on and to which I MUST attend and sample…..mmmmmmmmmmmmm)

Anyway, I have been following the latest ideas of asking owners to recompense the town halls and it is amazing. Apparently Banana Beach is going to be demolished – period!

Others have to hand over part of lands or pay compensation. Well, for the big guys who want to carry on thats fine, its the smaller developers who will renage.

And the biggest laugh of all could be La Reserva, as they actually DO have and own the land requested by the twon hall, so it COULD all be legalized!!! 😯

I give up – going for a coffee and brandy – to START with ! 😆

[Anonymous]

Los Lagos is a real risk

.

You in betting mood Claire?

[katy]

The banks giving mortgages on such as Los Lagos are probably the developers mortgages. The banks know there is less risk of the developer going bankrupt if they lend to purchasers, bit like spreading their bets (or debts!)

[Anonymous]

The banks giving mortgages on such as Los Lagos are probably the developers mortgages

Not so, according to my information

[Inez]

Im checking into Los Lagos as a few people have enquired. If the banks get a feel for something and that its ok, then they will lend, and some if the more obscure Spanish ones may do so as well as they undersant their system!

[Author]

Posts