Buying Property Off Plan in Spain

22 June 2020 | Tags: , , ,

Spain has an abundance of regions, lots of properties second hand residential and brand new off plan properties.  For our latest ‘Ask My Lawyer in Spain’ webinar we were joined by Marc Pritchard, Sales & Marketing Director of Taylor Wimpey Spain.  Taylor Wimpey build and sell new homes.  We also were joined by Paul Payne from Masa International who act as agent for selling new and second hand property.  And Financial Mortgage advice was provided by Alison Lowther de Cotta, Founder & Independent Mortgage Consultant at Mortgage Matters Spain

 

Questions to our Experts 

  • How are you finding the market at the moment?
  • What are the pros and cons of buying a brand new off plan property.
  • What are the pros and cons of a new build compared to second hand?
  • Generally speaking from the first person putting a deposit down to handing the keys over, how long does the whole build process take?
  • Why it important that you choose your location first, and then look for the perfect property, rather than the other way round?
  • What percentage of your buyers, buy an off plan property?
  • How much can buyers borrow for a new build property.
  • Do you think Brexit will create obstacles to property purchases post 31st Dec
  • If someone is able to pay cash for a property what issues does that raise for the purchaser?
  • Do you expect prices to drop because of the Covid19 situation?
  • Has the prices around Corvera changed since the new airport has opened?

 

  • When do you start to promote developments? When you have planning permission or before?
  • There are developers that start to offer their developments without planning permission in place; what are the risks involved in buying a property like that?
  • What are the extra costs of buying an off plan property compared to an already built property? 
  • Are there any additional costs (in total) as an approximate percentage above purchase price, please?
  • Is there any restrictions on how long you can stay in Spain after Brexit?
  • Key questions to be checked in the purchase contract (terms in general/escrow account/bank guarantee/completion deadlines/LPO in place etc.)
  • Prior to completion, how are you organising the buyers inspection for snagging lists with the lockdown restrictions
  • What is the protocol to repair damages (if prior to completion or later, how long maximum)
  • What money laundering criteria do you have in place?
  • Advantages/Disadvantages of taking over developer’s mortgage loan if possible
  • Is there any compulsory insurance to be set up by the builder after completion?
  • Is it necessary to wait until the property is fully built and LPO in place to start process of applying for the mortgage loan?

 

During the webinar, Alex Radford mentioned the webinar about Property Values and Surveys in Spain

 

If you have any further legal enquiries please contact us about your move to Spain.

 

Next Tuesday, Alex Radford is again taking part in A Place In The Sun webinar this time about the buying process in Spain.
You know where you want to buy and the type of property you’re after but don’t understand how to go about it. We walk you through the buying process – lawyers, mortgages, surveys, currency exchange – and the steps you need to take in order to ensure a smooth property transaction.
Register for your free place  

Alex Radford

Written by:
Alex Radford

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