Mortgage Valuation

My husband and I paid our deposit in 2005 on a property on the Calidona sister site of Corvera, with a now intended completion date of May 09.

As time lapses and the credit crunch is upon us we are now worried that the price we purchased our property is not necessarily the price it would be today.

Would anyone be kind enough to let us know either by PM or openly if properties on Roda have valued up OK for mortgage purposes.  

We appreciate tomorrow might be another story!

Thanks very much

Debbie

Certainly on RODA we didn´t hear of too many problems, even withrecent properties but again as no properties have been completed at Cirvera it is impossible to call at present

Spanish banks used t fund, for a non-resident mortgage, 70% of the valuation up to the amount that yiu had requested so if the valuation was higher you could end up with a 100% mortgage but this has changed

Now they will give you 70% of the valuation of the purchase price, which ever is the lower figure which is catching a lot of people out

Certainly on a number of other local sites completions are becomming more of a problem and are getting daily mails form people asking how they can get out of contracts and where people choose to write off their deposits

We have recently completed on phase 3b and our property did value up at just over the ex VAT price, although this was some 40,000 euro less than they apparently valued at last year!  We were told that Roda was one of the fortunate developments that were still holding their value to price as there is alot of people in negative equity in Spain too.   As Roy said part of the problem is in the lenders cutting back the mortgagable percentage.   We paid 40% deposit as I guess all us long ago purchasers did.....I think phase 4 only paid 30%, which might leave some people with more of a problem. 

.....like you said though who knows what next year will bring.....and incidentally we were told this time last year we'd complete in February and we only completed in October, so you may have an added advantage(??) of having to wait until 2010 for completion!!!!

Any people who have recently completed been able to get 70% (or more) interest only morgage  - if so please PM me with the details
Thank you Carole

Hi Carole,

In reply to your post I can tell you that there is (as of today!) still a 70% LTV product (not lower of purchase price or valuation) and this offers a maximum period of 5 years on Interest Only.

  

Mr unhappy please dont go away , we are in this with you.
We are IVS so what, we also are IVS in CORVERA.
This is a forum USE IT.
We read everything you write and it is very truthfull and correct.
If you wish PM me we are also on CORVERA, LOOK foward to hearing from you.

We are buying on Peinsa's development in Almeria and have just secured our mortgage with Leeds Eurolending. I wasn't keen on the Interest Only being just for 5 years then changing to Cap and Int. Leeds are doing 5.96% Int.Only for the full term (20years).The downside is it's a maximum of 65%.  Our value has gone up since the first 3 phases but I'm not sure that the rest will be so lucky.
Jo

That's great you got your mortgage offer!  As from Tuesday new applications for Leeds are going to be at the revised rate of 3 month Euribor + 1.25!!

That's good news.  Can't wait to get the keys now.

as a phase 4 owner i have more than a passing interest in how the completions on phase 3 have gone ie snagging build quality etc .
i would also be interested to know if its not to much of a personal question of how the valuations have stacked up in the current climate which is getting progressivly worse .
how are roda prices holding up ? as i was told by one agent and i quote "roda is like central london and is immune to the current conditions" i find this hard to believe as i look on some resale websites and there appear to be some substantial reductions are these just distressed sellers ? if this is the case is there no rental market ? as another thread mentioned he had two properties on road and was achieving 450 euros per month not even covering his costs !! is this the reality of the situation or is the guy just unlucky ? i have trawled the roda rental sites and availability does not appear to be an issue at any time of year .
i would appreciate any factual feedback on the above matters as a potential owner on to date the most expensive phase of roda the situation is becoming very concerning .

I dont think anywhere is immune to the current climate
A 2 bed penthouse apartment on Roda is valuing up at approx 230000 Euros realisticly

thanks for your responce which phase and what was the contract price ?

Phase 1 but I dont think there will be that much difference in phases as a valuer will take the building at face value and not the phase

I think most of us who are in Roda for the long haul dont have much to worry about, its the ones who bought to sell quickly are the ones who will struggle

Absolutely correct, across Spain all long haul now

If you can afford to buy forma distressed seller worth looking at, I have been

many thanks for the info , it looks like were in for a fair old time of negative equity and a long haul !! , still look on the bright side on calidonas current rate of progress there could be another property boom by the time they get round to building phase 4  let alone completing the development !!! .

This message was last edited by searay on 10/27/2008.

Searay - I think we are in the same boat as you with a property in P4.  I'm a bit disappointed with Calidona as communication throughout the delay period has been non existent.  We have just had a letter saying the building permit has been issued and offering us a Client card worth 30 days holiday and €3K as compensation.  Given the extensive delay I think this is a poor offer as I could have obtained significantly more than this amount in a bank account.  Have you received the same offer?

DGR

i can confirm i have recieved the building licence notice and calidonas offer , which i think just about sums up there attitude towards there clients . i notice there is still no mention of the hotel ? i put it to customer services that they will have been earning interest on my money for 4 years by the time of completion and would they be prepared to reduce the cost appropriate to the interest they have earned and i have not had the benefit of , well you can guess there answer not a chance even though they are two years behind the delivery date indicated at time of sale . 

 

 

 

This message was last edited by searay on 11/22/2008.

Hello All, has anyone got any info re: current mortgage valuation or market value of their Roda property. We are Phase 4 owners and are concerned about bridging any potential gap between the 30% deposit we've paid and the mortgage valuation.

Cheers,

J & N