If you want to buy a property, sooner or later you have to think about a suitable financing. The same applies to a planned house purchase in Spain / Mallorca. The means of choice is regularly a loan, which is to be secured by a mortgage. When financing through a Spanish bank, there are some special features that need to be taken into account, which are outlined below.
First of all, it is important to note that mortgages may only be granted when acquiring, building or renovating a property.
Once you have decided on a property and know the purchase price, the next step is to choose a bank with suitable conditions. Spanish banks differentiate their conditions according to whether the potential borrower is a resident or a non-resident: The lending limit for non-residents is up to 70% of the purchase price, but this is rarely the case in practice.
is reached, while for residents it can be up to 80%. In addition to the loan-to-value ratio and the costs, a term must also be negotiated, taking into account that in the case of Spanish mortgages, the mortgage must be fully repaid at the end of the term.
In order to obtain financing with mortgage security from a Spanish bank, it is necessary to provide the bank with some information so that it can assess the creditworthiness. Furthermore, the willing buyer needs a Spanish tax number, the so-called NIE number, which can also be requested by a lawyer.
Furthermore, an independent valuation report must be prepared, which, however, may not be prepared by the banks themselves in Spain. Rather, it is the sole responsibility of appraisers of the Spanish National Bank to prepare these appraisals.
Based on this value appraisal, the bank prepares a binding offer for the buyer. This offer must now be officially accepted by the buyer/borrower.
It is then up to the bank to fulfill its information obligations by providing all the necessary information about the financing and sending it to a notary selected by the buyer. This consultation by the notary, which is important for the entire transaction, may take place at the earliest 10 days after receipt of all documents. The consultation with the notary then takes place without the presence of the bank and is intended to ensure consumer protection.
Only with the expiry of at least 24 hours after the notary appointment may the mortgage contract finally be signed. It is important in this context that this is a separate contract from the (later) purchase contract.
It is important to consider the aforementioned deadlines when purchasing a property.
The fees for the registration of the mortgage in the land register as well as the mortgage taxes have to be paid by the bank according to current Spanish law.
Porta & Associates - Your real estate lawyers in Mallorca.
As German-speaking lawyers in German-Spanish real estate law, we are happy to support you in the purchase and sale of your property in Spain. We accompany you from the preparation of the purchase to the signing of the contract in front of a notary and the follow-up of the purchase. Gladly in close cooperation with your real estate agent on Mallorca. We apply for your license for vacation rentals, advise you on current tenancy law and provide legal support for owner associations.
Trust lawyers who speak your language and can advise you on both German and Spanish law. We are on site so that you can really enjoy your property in Mallorca.
www.anwaltmallorca.eu
