Frank and Diane have own to Spain. They know what they want: a villa on the Costa Blanca. They know their budget: £100,000, which with their forward currency arrangement is guaranteed to buy them €138,000. Out of this they must pay as much as 13% extra for buying costs and tax, and 2% more if they are going to get a mortgage, which is made up of the following:
|Registration of property:||1%|
And in case they need a mortgage, they will have an extra cost:
|Other fees (gestoria, Registry, property valuation, notary):||0.8%|
|Mortgage stamp duty:||1%|
|Bank mortgage commission:||0.25%|
The most signigicant of these is tax, which is subject to change depending on the political or economic circumstances.
Frank and Diane decide to look at property of up to €140,000 and hope to negotiate the price down to a more comfortable €120,000.
They are staying in a hotel and have checked that they have access to their phone and the internet so they can contact their lawyer quickly. When they need it, they can easily and cheaply send money for a deposit, or to pay a local surveyor.
They have arranged as many viewings as possible, but with plenty of time for relaxing and discussing what they have seen. They have borne in mind the distances and local terrain when considering how many houses they can comfortably view in the time. They have instructed the estate agents not to show them any property outside their price range. They have a reliable camera so they can take plenty of photos and possibly a video (on which they could record their own verbal rst impressions too), a notebook to write down any extra information the estate agents give them, or questions they will need answering. Lastly, they have a checklist of information requirements.
BUYING TIP Frank has created his own scoring system for each property. This has the advantage of listing those criteria that he has judged most important. All of this information will be organised into a le to reread at the hotel.
Now, let’s see some houses!
Frank and Diane know that whatever is stated on a later contract, the seller must provide what is listed on the initial sales information, including all services and facilities. So when conducting a viewing, they check that the property matches what is listed on the details in terms of quality of materials, state of repair, views, the local neighbourhood, noise, access to transportation, etc. They bring any issues to the attention of the seller or agent showing them the house and, if they are not convinced by the agent’s explanations, they may return accompanied by a professional architect or surveyor to inspect it and get a valuation to correct it.
Any company selling or promoting housing should make the following information available to the public:
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