POSSIBLE RETURN TO UK.

I am throwing open forum for discussion of the following:

 Gettting a mortgage on a property in Spain especially an interest only has advantages

1. Exchange rate low now so you can delay transfer until better- if it gets better.- Invest in UK /off shore at higher rates to get mortgage payments.

2. Having a debt on a property reduces tax on death ( sorry but need to consider everything)  Inheritance tax in Spain not like UK . Its more a Capital Gains tax that even a spouse has to pay. The more debt the less property value transferred less tax paid.

Property Ownership

 The more owners of a property the less tax paid as more individual allowances can be claimed. So important now to have say children on property.

Applying for residency means paying less property tax as not automatically classed as investment property.

Essential l to make Spanish Will as inheritance laws different . I even heard that without will hard to prove  succession.

OK enough for now

What do you all think, know or have found out?

Does anyone have an accurate Euribor rate? In doing our research we have done various calculations on various sites but they all want us to put the % in. Yesterday we saw the Euribor at 4.79....% and on another site 4% and we have seen it at different values elsewhere. We just want a base line to work from.

We have now gone back through the threads and have seen dringman's  'standard reply from Cam Bank'  which is a help to us as we are awaiting various information and so feel a bit in limbo. As this information says CAM will offer up to 30 years on the Polaris/builders loan thats now interesting us.

http://www.euribor-rates.eu/current-euribor-rates.asp

4.39 approx


Cam Subrogated covers 60% buying price not including tax  so still more to find . Extra would be a separate mortgage with Cam,  trying to get clarification on costs for additional . Cam are still waiting for current property  values as extra based on value not original amount paid .

Still trying to get used to the different ways things are done. You ask for illustrations etc and it seems no one understands what I am asking for. In Uk  legally obliged to provide full disclosure .

Once I think I understand will translate. If anyone else already understands please explain it to me. Thanks.
Meantime I am supplying all information Cam require including doing my own credit check. I have been used to doing other peoples but never having to supply one on myself. Do not understand why Bank can't do it with client's permission.
Still when in Rome etc

Correct me on anything if I am wrong - please

I have asked someone who bought on other Polaris resorts and they just did what bank said, all seemed to go OK.
Subrogated mortgage seems the way to do it . I always thought that it was restricted to 60% of buying price but seems more can be obtained, still awaiting details !

With Euro rate going low it would cost another  €6500 now to transfer balance form sterling , so sobrogated mortgage looks better proposition.

It will soon be all over!!

Dringman, On the CAM bank information on the earlier thread it says

'we have the valuation (which is simlar to the purchase price) in all Jardines de Alhama properties so we can offer you the 70% from valuation figure to borrow.' (presumably for people who want to raise their own mortgage)

In the information on the 'Conditions for builders loan at Jardines de Alhama' it says  Amount 60% from purchase price. You then say that extra has to be found for the tax- if CAM are saying the valuations are similar to the purchase price then anyone who was hoping to raise money on the valuation for tax and possibly furnshings might find it not as they hoped. Do you agree?

Has anyone ever said what current values might be?

I can only assume we could get an additional 10% on buying price if values haven't changed . Probably not as much as we originally hoped. The price some 3 beds are being sold by Polaris now is about €6000 higher than I paid .  2 beds seem to have done better. Not aware of any values out yet but hope to get that from Cam shortly. Interesting !!

Hopefully next week we will be better informed. It'd be nice to think everything has gone up in value though, although we want to keep our borrowing as low as possible. Bit of a shocker the 6,500 euro's to transfer sterling.

Consternation abounds here as my searching the 'net and doing calculations, discussing the Euribor and interest rates has not gone un noticed. Usually I have problems working out my Tesco receipt!

This message was last edited by 1098 on 3/2/2008.

Just received a e-mail back from Eva at Cam banking with the costs of Notary fees and charges.   We need 2 mortgages if we don't pay the vat ourselves. At least now I have an idea of some of the costs.

I´m Eva from Cam Bank, we are the bank financing the Resort, so we have all properties valuation done (you won´t pay any valuation), and with our loans you have an important saving in taxes notary and land registry for mortgage title deed (3000 Eur saving on each 100.000 Eur mortgage).

 

As you are purchasing plot nº J    and you need at about 60% of the purchase price these are the conditions that we could give you:

 

1. You take directly the builders loan:

Amount: 78.420 Eur

Initial interest rate: 5.75%

The first revision will be done on the sixth month. The following revisions will be done once per year.

Bank fee: 0.75% The bank fee is based on the amount of mortgage you are getting which in your case is 78.420euros

Interest rate: Euribor + 1.10% this interest rate could be reduce to Euribor +0.75% contracting some products such as property insurance, credit cards.... (please see file attached)

Term: Max 30 years with 5 years interest  only

Advance repayment fee:0.5% for the first 5 years, since the sixth year you would be charged 0.25% of the amount you are paying off.

 

 

We could finance you more in order to cover the vat or the expenses. In that case we could get up to 70% of the valuation price of your property. We could do a second loan of the amount you are going to need with the following conditions.

 

2. Second loan 

Amount: ex. 13.000euros

Initial interest rate: 5.75%

The first revision will be done on the sixth month. The following revisions will be done once per year.

Bank fee on this one 1,50%

Interest rate: Euribor + 1.10% this interest rate could be reduce to Euribor +0.75% contracting some products such as property insurance, credit cards.... (please see file attached)

Term: Max 30 years with 2 years interest  only

Advance repayment fee:0.5% for the first 5 years, since the sixth year you would be charged 0.25% of the amount you are paying off.

Please, note that if you decide to get a second loan too then we could only offer you two years interest only for both mortgages.

 

Costs for buying the property:

Tax office: 1.307euros

Notary: 1.500euros

Registry: 528 euros

Gestion: 251 euros

--------------------

Total : 3.586 euros

All these charges will be paid even if you do not get a mortgage.

These are not paid to the cam bank.

 

Costs for getting the second mortgage:

Tax office: 267euros

Notary: 350euros

Registry: 170euros

Gestion: 178euros

---------------------

Total: 965 euros

I have calculated for you some figures.

Polaris mortgage (78.420€) for 15 years with two years interest only would cost you aprox. 385€ / month for the first six months and then it will be revised.

If you do not take interest only you would pay 655euros / month for the first six months and then it will be revised.

Hi can I ask- did you make this query last week and they have just replied or did you enquire over the weekend? We've had no response yet.

I sent an e-mail last Tuesday, so it took nearly a week to get a reply.