Mortgage Loan to Value’s in Spain are calculated according to a percentage of the property valuation or purchase price whichever is lower. This is a mortgage valuation conducted by an independent company (not the bank as is commonly conceived).
The valuer will require a Nota Simple of the property and will, in all cases, visit the property in person. They will give you a report detailing the location, facilities and quality of the property and make a comparison with recent sales prices in the area. Finally, a calculation per square metre will be made and a valuation figure for the whole property is given.
An independent property valuation can be used to gauge a fair sales price for those considering putting their property on the market or for obtaining a re-mortgage from the bank. Having a favourable valuation is often a good selling tool when marketing your property.
Buyers often order a valuation survey to ensure they are getting good value for money from their property purchase or for the purpose of obtaining a mortgage offer from the banks.
A mortgage valuation and a market valuation can differ slightly. Not all valuation companies use the same calculations and not all reports will give the same figure, so it is often beneficial to speak to someone about the best valuation company to use, in order to ensure you do not end up with a misleading valuation.
When purchasing a property in Spain, it is very important to make sure you are represented by a qualified solicitor. In Spain, debts are attached to the property and registered at the local land registry, so it is highly advisable to contract a solicitor to ensure the property is free of debts and encumbrances prior to purchase. It is also very important to ensure there are no unregistered buildings attached to the property and your legal representative will be responsible for this.
The property purchase itself is also a complicated procedure, the taxes payable upon completion have to be calculated exactly and payments prepared, the notary has to be in possession of the necessary paperwork prior to signing and often existing mortgage have to be cancelled etc. Although it is not a legal requirement to contract a lawyer, it is highly unadvisable to use anyone but a qualified Spanish solicitor for these procedures.
Your Spanish legal representative will be your spokesperson, negotiator and safety net, so it is important to use someone you trust. Our highly qualified legal team offers a complete conveyance service that you can depend on.
An extensive insurance policy in Spain is a must, even if you only have a holiday home, car or investment property in Spain. It is a legal requirement to have a Spanish buildings insurance policy with a property mortgage loan, as this is the bank’s guarantee if something should happen to the property.
Some banks insist on their clients taking a life assurance policy as well, especially senior property owners. Although this is not compulsory, many banks will insist on it and will not approve the mortgage without it.
Contents insurance is not compulsory but most building insurance policies include a contents policy for a few additional Euros. Prices are very reasonable so Spanish contents insurance is a worthwhile investment considering the cost of replacing furniture and valuables.
Motor insurance tends to be cheaper in Spain than in many other European countries and it is advisable to pay a little more for a policy with added extras such as express 24 breakdown service.
It is possible to request policies in English as well as Spanish nowadays and the insurance products in Spain are becoming broad and competitive. Other types of insurance available include hunting, fishing, health, boats, bikes, construction, transport, communities and pets.
We use a number of insurance providers to ensure a good selection of products as well as the ability to choose the best policy for you.