Properties
for Sale in Spain
These are the following basic property types you will
come across in Spain:
| Apartment |
A Flat, usually on one level, within
a building complex (“Edificio”). |
| Finca |
A Spanish cottage, normally for sale with a sizeable
plot of land, stone walled and bursting with character,
however, can be higher maintenance than a new villa. |
| Tienda |
Tienda is the Spanish word for shop. Shops are
normally “stand alone” units here and
it is rare that they come with living accommodation
included. |
| Town-House |
Usually (but not always) an old Spanish town house
located in the old town (“Casco Antiguo”)
of a town or village. Normally bursting with character,
some with their own courtyards but often built on
three or four levels (so lots of stairs). |
| Villa |
House set in its own grounds, sometimes with pool.
Many of villas are structured as two self contained
apartments and many people here have long term rentals
in their villas to supplement their income. |
Buying property in Spain is not a complicated process,
however, different rules do apply in comparison with
UK procedures so you would be wise to retain the services
of an English speaking abogado (lawyer) to protect your
interests. For example, there is no “gazumping”
in Spain (which is good news), however, this also means
that once you have contractually committed yourself
to a property, you are legally obliged to complete (even
if, for example, debts on it are later discovered) so
it is vital to get the right advice early on. There
are two basic types of initial property, offplan (new
build property) or resale property:
Offplan: Many people buy
offplan and
there are various advantages to this, as opposed to
buying a resale property. The property market in Spain
continues to expand rapidly and new build properties
are always attractive to prospective buyers. Indeed,
many large investors reserve whole sections of offplan
properties for later resale.
Financially, the staged payment periods associated
with offplan purchase are attractive as properties can
be bought for a low deposit, with time to organize finance
as the development progresses (deposits are usually
protected by bank guarantees – but this is worth
checking prior to committing yourself to a property
and 70-80% mortgage options are also readily available).Also,
once a contract is signed, the price on your property
has effectively frozen and, by the time the development
has been completed, your property has usually already
increased in value by anything up to 50%.
If you are buying offplan to live in, however, be
warned that completion dates can slip. Whilst in the
UK, contractors are contractually obliged to adhere
to completion dates and LADs (Liquidated and Ascertained
Damages) come into force if completion dates slip, this
is not the case in Spain and it often happens that developments
are weeks or even a few months late in completing.
Resale: With resale properties you
can actually visit prospective properties and see exactly
what you are getting, including a real idea of views.
They are available straight away and most resale properties
are agreed and completed within three months so you
do not have to worry about delays in completion. Resale
properties also sometimes include fixtures, furnishings
and white/electrical goods within the purchase price
(great for holiday or rental use).
One of the main differences between UK and Mediterranean
lifestyles is that, due to the wonderful sunshine, you
have very much an outdoor lifestyle in Spain (so you
don’t have to get too hung up on having large
internal space). You can afford a place in the sun,
whatever your budget!
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