Buying a property in Tenerife
Buying
real estate property is a great investment whether you intend to make it
your main family home or use it for your Tenerife holidays. Residents who
buy Tenerife properties can qualify for an 80% mortgage on resale properties
and in certain circumstances a 100% mortgage can be granted. Non-residents
who can provide basic financial information can get a 60% mortgage. If you
buy a property that is still under construction the builders may offer you
a pre-arranged mortgage. It is important to remember that the financial
market is constantly changing and lending criteria does change. If you need
to finance your property purchase with a mortgage, this is something that
you should take professional advice about.
Tenerife
estate agents such as Clear Blue Skies S.L. have a good selection of properties
for sale across the south of the island, from studio apartments that could
make a great rental property to luxurious Tenerife villas that we all dream
of owning one day. Rural property in need of a bit of TLC is cheaper to
buy, but the lending criteria is different to that of buying a new build.
Cheap property in the popular resorts is hard to find unless you are lucky
enough to stumble across a property that needs modernising.
The house buying procedure is slightly different to that in the UK, so you should ensure that you use a reputable Spanish lawyer (Gestor) when making your purchase. Non-residents are required to obtain an NIE and open a non-residents bank account when buying real estate property. It is also worth remembering that there will be taxes and legal expenses to pay which are approximately 10% of the sale price.
Buying
properties in Tenerife requires the buyer to put down a 10% deposit on resale
property or up to 25% on a new property that is being purchased direct from
the construction company. Once your deposit has been received a contract
is drawn up which should include the expected completion date and details
of other payments which may need to be made.
Your Spanish lawyer now has to gather together the paperwork relating to the Tenerife property you have paid a deposit on to ensure that the vendor is the legal owner, all utility bills are paid and that there are no outstanding debts or embargos on the property before the sale goes through.
It is worth noting here that if you buy Tenerife property and later find that there are uncleared debts from the previous owner, it is you as the new legal owner of that property who becomes liable for those debts.
Both the buyer and the vendor are required to attend the Notary office on completion day. If there is an existing mortgage on the property, the buyer will be instructed to prepare a bankers draft prior to completion day, which will be made payable to the vendors mortgage company or bank, any remaining money will be paid to the vendor. It is the responsibility of the bank to ensure that the mortgage is then cancelled.
For anybody who is interested in buying property in Tenerife, we provide a free service aimed at helping you to find the right property at the right price.
To use our free "property finder" service click here.
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