Bank Repossession Property in Spain

When you begin your property search in Spain, I am sure you will see many portals and websites advertising Spanish repossession properties at bargain prices. This could well be a good route for some, but it´s important to understand how the Spanish banks work, and the complexities of buying repossession property. After the world financial crash in 2007/2008 repossession properties were plenty, with many owners hitting a low in their financial status and finding it difficult to maintain mortgage repayments. The banks are obviously keen to try and recoup these losses and offer properties at what may initially seem to be bargain prices, but it is essential that you make certain checks to ensure that the property is a good investment.

Here we have some basic information to help you understand the buying process within the banking system.

Use an independent Lawyer

It is complete madness to embark on buying property in Spain without employing the services of an independent lawyer. Local property laws can vary between Spanish regions and although the banks will have legal representation it is always good practice to have a lawyer represent you who is not associated with the selling party. It is almost certain that electricity and water supplies have been turned off, and in some circumstances it can be problematic getting these reinstated, so your lawyer is vital to investigate this situation with the local utility suppliers.

Check the property

It is more than common that bank repossession properties will be in a state of disrepair, and in some cases some of the appliances, central heating systems and bathrooms may have been partially or totally removed by the previous owners. It is advisable to use a surveyor to obtain a general overview of the property and highlight any structural defects, also he will be able to give you estimated costs to rectify the faults.

How long will it take to buy repossessed property from the bank?

Generally it will take longer to buy through the banks, the final completion will not be able to take place before all paperwork is up to date and available. Banks are notoriously slow with almost all procedures and it could take anywhere from 6 months to 2 years depending on the complexity of the sale and the situation left by the previous owners.

Summary

The obvious attraction to buying repossession property is the purchase price, this in some cases can be very beneficial from a financial point, but the journey buying through the bank can be a challenging and time consuming process, and in some cases what initially seems like a fantastic purchase may not be as attractive as you thought with the selling price not that much better than a similar property purchased through a private vendor, in fact it is almost certain that the bank will not negotiate on price the same way as a private seller.

Work on the 9 hole Mestral course has now been completed and is due to be reopened returning the La Sella golf complex 27 holes. The course has been remodelled with new grass, bunkers, landscaping and a complete up to date irrigation system. Importantly all the tees and bunkers have been resized with new drains and pond areas

Jose Maria Olazabal to visit La Sella in November

All the works carried out have been supervised by the course designer Jose Maria Olazabal. Work was carried out by Golf Tecnicas Naturales,Acttua and TAS. Olazabal will be at the reopening of the course in November to attend an official opening with partners and golf friends with more than 30 years in the sport.

Living in Spain is a dream for many, with one of the best climates and coastlines in the world, and ranked by many official organisations as one of the best places to live and invest, Spain still has a special draw for most nationalities. With the recent situation regarding the covid virus, more people are looking to relocate and work remotely and take advantage of the Spanish climate and lifestyle. Also with the exit of the UK from Europe and new residency laws, many Brits are still keen to relocate and take advantage of the Non Lucrative Visa in Javea.

If you are planning on relocating be sure to visit our homepage and search through our great selection of apartments, townhouses and villas.

Here is a very simple guide to explain what the visa provides and what you will need to obtain one.

The Non Lucrative Visa in Javea

This is probably the most accessible way to obtain a Spanish residency visa.
It allows.

If you are a non EU resident you can live in Spain and work remotely for companies outside of Spain

It is issued for one year and renewable after two years

You can buy property and be involved with other Spanish investments

After five consecutive years, you can apply for a full Spanish residents card

The visa covers your family so you can bring your Spouse and children to Spain immediately

You are allowed to study in Spain

What do I need to Qualify for this Non Lucrative Visa in Javea?

You will need to show a minimum of 26,000 euros in your bank account

Each family member must have 7000 euros in their account. Your bank will need to provide proof of this. In certain countries such as Russia, you will need to provide statements for 6 months to show bank transactions. Your funds do not have to be in the same bank account.

The bank account holder’s name must match the visa applicant.

You can include your spouse and children with a joint application but remember you will need to show funds to support each member.

You will need private medical insurance operating in Spain to show you are covered for care outside the Spanish national health system.

How to Apply

The application is fairly simple, initially, you will submit the application outside of Spain to your nearest Spanish consulate, after you have the visa and enter Spain you must then apply for a resident TIE card.

Usually, the consulate will respond to your application within 1 month, if you do not receive anything within this period then your application will have been rejected. If your application is accepted then the visa will be added to your passport and travel to Spain granted.

Documents required for application

National visa form

Spanish private medical insurance

Form Ex 10

Certified bank funds of over 25,000 euros

Passport

Two Passport photos

Certified medical certificate

A translated certificate of no criminal record

Useful links

Application form  http://www.exteriores.gob.es/Embajadas/OTTAWA/Documents/Solicitud%20de%20visado%20nacional%20-%20Ingl%C3%A9s.pdf

Form Ex10   http://www.exteriores.gob.es/Embajadas/OTTAWA/Documents/Formulario_residencia_no_lucrativa%20%2805.07.2018%29.pdf

Since the announcement of Brexit and other Spanish regulations related to residency, the question of whether it is possible to bring members of your family to live here in Spain has been frequently asked.

Basically the answer is yes! If you have a residency permit such as a TIE card and are classed as a non EU citizen then via the Family Reunification Visa, and after a 1 year period, you will be able to bring family members to live with you in Spain.

There are certain circumstances where it is possible to bring family members to Spain immediately, but one of the following documents will be required.

1. EU Blue Card
2. Student Visa
3. EU Long term residency permit

On the 30th of September 2021 Mayor Jose Chulvi signed an agreement with the Notarial college of Valencia which will give the Notaries of Javea more power to speed up the purchase process, by allowing the facility to electronically carry out tax checks on property sales at the time of purchase, and alerting purchasers to any debts that may be attached to real estate.

Buying a property in Spain is an exciting process, but also one that needs a great deal of time dedicated to research and preparation. A common misconception made by first-time buyers is that the purchasing process is the same in Spain as in their home country. This can often lead to mistakes that either prolong the purchasing process or cost you more money than necessary. Here are the 5 most common pitfalls when buying a property in Spain, and how to avoid them, so that you can feel confident and fully prepared for your Spanish property journey ahead.

Not having your registrations in place before the buying process

Certain registration requirements are integral to your property process – without these, you will halt your buying process. You need to make sure you the following:

• Your NIE number – required for property purchasing and legal conveyancing
• A Spanish bank account – required to set up a mortgage or/and pay relevant fees
• We highly encourage that you complete your NIE registration early so that you can set up your bank account and start your buying process as soon as possible.

Insufficient property research

By not doing enough research into the property you would like to buy, you may risk encountering unexpected costs or additional parts of the process. You need to answer important questions such as:

• Has the house been built legally?
• Does it need any renovation work?
• Does it have building licenses to do any modifications?
• Are there any restrictions on modifications?
• Are there already any urban planning records on the property?
• Is it necessary to obtain a SWOT analysis?
• It is best to get an architect to answer these property questions and obtain the certifications you will need, as well as any relevant reports from the city hall or local authority.

Not accounting for all of the costs involved in buying a house

Buying a property in Spain can become a complicated process if you are not familiar with the exact costs that are involved. The types of tax and the amounts you pay depend on the type of property you wish to purchase (usually VAT and Stamp Duty). Additional costs include notary fees, land registry fees and legal fees, among others.

Not understanding your contract(s)

Buying a property is a considerable investment, so you need to make sure that when you sign contracts, you know exactly what they mean. By misunderstanding a contract, you could risk encountering serious consequences. The most effective way to ensure this is by hiring a lawyer who can help with the entire purchasing process, from NIE acquisition to conveyancing. You should also try to choose a different lawyer to the seller of the property, guaranteeing that they have your best interests in mind.

No preparation for future fees

Remember, the purchasing of a property does not mark the end of the process. You still need to budget for on going costs, such as your mortgage, home insurance, utility bills, and various taxes such as non-resident tax, property tax (IBI). Spain’s utility costs are one of the highest in the EU, so it is essential to take this into account when budgeting your monthly outgoings.