Foros de la Plataforma por una Vivienda Digna

[billy]

Halifax advice on buying property in Spain

Good advice here from the Spanish arm of the Halifax in relation to buying property abroad...Our suggestion (for what it's worth, as we do not proclaim to be experts on the subject) is anyone considering buying in Spain, in the usual suspect places, needs to take a deep breath and count to ten - perhaps ten years for the absurd prices and drastic over development to have its full impact..As for the 'equity wealthy' borrowing v their main residence to then buy abroad....

Buying a property in Spain is a dream come true for many Britons, but it is important that you work with specialists that can provide you with the right guidance to follow the house buying process correctly, advises Banco Halifax Hispania - the Spanish arm of the Halifax.

Halifax say that although employing a solicitor and surveyor will increase the purchase costs, as legal and survey fees have to be paid, these amounts are relatively small compared to the expense of trying to sort out unexpected difficulties in the future.

However, it is good practice to use an independent solicitor rather than one that has been appointed by the agent that you are buying property from, to protect your best interests.

Banco Halifax Hispania has an approved panel of Spanish solicitors (Abogado) and surveyors. As in the UK, a Spanish solicitor will ensure that all aspects of the purchase, including planning permission, obtaining a residency certificate and other legal requirements are satisfactory and will investigate the property as thoroughly as possible to protect your interests. In this respect, they are able to assist you in a number of key areas throughout the house buying process:

- Searches and legal investigations - Working with a Spanish solicitor will ensure that all searches and legal investigations will be carried out prior to the property being purchased. These will highlight any possible difficulties, such as the property not being correctly registered, before they arise. It is important to ensure that this information is verified prior to the purchase to ensure that the transaction is legally sound.

- Outstanding debts - In Spain, any outstanding debts stay with the property when it is sold. Your solicitor will ensure that these debts are cleared or accounted for before the sale is completed. Otherwise, the debt becomes your responsibility on completion of the sale.

- Land Registry searches - It is also important to check the Land Register or Cédula Urbanística for the land status as Spanish law imposes strict regulations on types of property and where they can be situated. The property should be registered as a 'vivienda' which literally translates as a 'habitable dwelling'.

- Planning permission - If you are purchasing land for self-build, it is important to check whether planning permission is obtainable as restrictions do apply. For example, there are issues relating to how close properties can be built to the coastline. There are some properties on the coastline of Spain that have been built without prior planning permission. Only once the work has been completed have builders applied for planning permission, without any guarantee that it would be granted. The consequences can be dire.

- A Notary versus a solicitor - It is important to remember that a notary (notario) is not the same as a solicitor (abogado.) An Abogado will act in your interest and advise you on the best way to proceed and check that the agreement is as comprehensive as possible. This is particularly important when dealing with off-plan properties, where it is essential to establish and confirm the space and dimensions of the property.

In contrast, a Notario is an official who acts as a witness for the signing of official documents such as the sale completion and whilst they will be a qualified lawyer, they will remain impartial and not conduct any investigation into the finer details of the sale.

Ian Smith, head of European Operations at Halifax said: "Our approved panel of independent solicitors and surveyors are all experts who can provide sound guidance and reliable advice and we recommend that anyone intending to purchase property in Spain arrange a consultation as early as possible. Few people would consider buying a property in the UK without instructing a solicitor or surveyor and the same care and consideration should be taken when buying abroad."

Banco Halifax Hispania offers a range of current account and mortgages for Britons looking to buy a second holiday home in Spain. It also provides an English speaking helpline within the UK for customers who wish to sort out their financial options prior to arriving in Spain. The helpline answers queries about what's involved in buying in Spain and can arrange for the completion of mortgage and bank account application papers.
http://firstrung.co.uk/articles.asp?pageid=NEWS&articlekey=3413