Just put our name down for an apartment at Mar y Sol...

Many thanks, SemiJubilada for your advice - we'll certainly take that on board.
You're right - Spain, etc is fine if eyes are kept open and brain not left at the airport!
Many thanks again - it's encouraging to know there are so many out there willing to help and avise.
Best wishes,
JIll

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Glad to be of help, just remember that second sentance and you can't go wrong.

Carry on with the research through the numerous forums on the internet and I recommend reading Buying a house in Spain and You and the law in Spain.  A lot to read but it will be helpful, anything you don't quite understand then someone will be able to enlighten you.

Just when you've got it all sussed someone throws a spanner in the works.  The thing to remember is that different areas do things differently and not all information will be correct for every area.

My neighbours have been out in Spain since the houses were built and at first I thought they were brilliant but after a while I realised that some of the things I was being told didn't ring true. 

I then found there forums and after a good discussion then you can work out yourself who to believe.

I'm off to my Casa on Wednesday and I bet there are not many others who go out with Budgie Sand Paper in their cases.  My neighbour lost her husband last year and someone suggested she get a budgie for company, so each time I go out  I replenish her supply.

 

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HI Astrojill,

You will find it very hard to get a bank to finance a new build property with 100%+costs+cashback at the moment.

You have to understand the current climate here in Spain to appreciate what is happening with the financial institutions at the moment.

Because of the past yearly increases in property prices the Banks would issue 100% mortgages because they were assured that in a year or so's time the capital value would increase and take the equity above the mortgagable value and loan amount,leaving them safe in the assumption that the house would be worth more than the figure than they actually lent against the property.

In layman's terms they knew if anything went wrong they would get their money back.

Now we have a different scenario,with the raise in interest rates and more and more people defaulting on their mortgages the bank's are getting their fingers burnt,where as the bank would lend 100% to a non-resident you will be lucky to get 80% at the moment,if you could get 100% as a resident you will be asked too add an insurance policy to cover any problems.

Once upon a time the bank would only ask for P60's and 3 wage slips,it is now common ground for them to ask for Experian reports!!!

The banks have been given a specific directive from the Bank of Spain not to issue 100% mortagages to non residents,i have heard of some cases where the notary will ask for a purchase contract to make sure the loan percentage is not for the full purchase price let alone costs,taxes and cashback!!!

Of course this will still go on and there are always ways and means for the builders, but my advice would to be careful and seek independent legal advice before pursuing any purchase,you may be breaking the law without knowing it.

We deal closely with the banks and it is not uncommon for them to repossess a property with more outstranding on the mortgage than it's present market value!!

Remember there is no such thing as a free carrier bag!!!!!!

Georgia

 

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Hi Jill

The mortgage on these apartments are based on a 2 bed 2 bath  priced at 103,000 euros with a bank valuation of 135,000 euros it is a 80% mortgage with Caja Murcia bank in rojales, so they are willing to lend you 108000 euros which will give you a cash back of 5,000 euros ,    but i think you will have to find your 10% costs, unless the builder has a 10% discount to play with.

 

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Anyone can post what they want as long as they do not break Justin’s rules.

 

Joe1 is a very satisfied customer but they are others who are not happy to have to wait 5 + years to get a property that they were told 24 months at the time of the sale. 

New or old posters we are all buyers of Trampolin Hills Development.  The forum is about sharing experiences bad and good ones about Trampolin Hills, so please let us express ours opinion freely just as you express yours without anyone attacking you.

So Joe1 you may have to put up with us until the development is completed.

 

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eh!!!!!!!!!!!!!!!!!!!!?

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Thank goodness for that Georgia - I was totally thinking I have lost it there!!! Think someone posted on the wrong thread???

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i was more concerned there was an argument going on and i was missing out

Mental note;ignore forum,get on with the pille of paper work staring at me.

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Yes I thought I had missed something Georgia. Pat

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Presumably posted in error, meaning it to be posted on the message board for Trampolin Hills Development, I would assume. Georgia you say "pardon", not "eh" !!

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eh!!!!!!!!!!!!!!!!!?

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Alb,

I think you will still find that although mathematically it can be done,it is still illegal to do so.

Where is the wise old smiley when you need him?

Regards

Georgia

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After a trying day at the Notary with a failed completion I find its all kicked off in here - sorry Georgia!!

Just to confirm what you are saying. In the eyes of the Bank of Spain who lay down all the terms and conditions that mortgage lenders can follow in Spain (effectively one is borrowing their money - like in the good old days in the UK pre Barings - but then revised again...ish for Northern Rock) it is illegal for a non resident to borrow more than 100% of purchase contract price. I do not care whether people are doing it or not it is in practice against the law and somewhere there will be "dodgy" paperwork to support the application. If there is dodgy paperwork it is deemed to be fraud and perpetrators should know they are opening themselves up to suffer the consequences.

The system has been open to abuse for years and years and everyone (almost) has done it or knows someone who has done it but rightly the BOS is concerned that if a buyer does not expose themselves to at least some risk then what is to stop them defaulting on the mortgage and walking away - if one is resident that is one thing but for non residents it is completely different to try and pursue them in their own country.

Any broker or official that tries to encourage no money in (i.e. 113% of purchase contract) is encouraging someone to engage in what is a fraudulent transaction.

Here endeth the lesson (Smiley 1 Verse 6 Chapter 9)

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After a hard day working on a building site in Manchester

 

       Like you say Smiley everyone has done it and is still doing it, i have been offered dozens if not hundreds of deals like this  from agents,  builders ,and promoters in spain and at the end of the day if a bank is willing to lend 110% on a property they must think it is a safe enough bet.

alb

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        Sorry!!!  In the rain

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Alb - they are NOT lending 113 or 110 or 120%!! The bank values at a certain amount - its not a comparable figure but based on euros per square metre.

Non residents USED to be able to 'get' 80% of that BUT if the purchase price is set at 67%, then add the costs and bingo you are within that magical 80% figure

However - this means you are actually borrowing more than the purchase price and this is illegal. In most cases the banks AND notaries are asking to see the actual purchase contract and therefore that contract has to be increased to include the costs.

Which is openly fraudulent.

The banks, Notaries and Lawyers know this is going on and people have been arrested over it - they arrest them at notary as then they can prove intent as the parties go to buy.

I know of mortgage companies who are comfortable in providing these contracts.

I hope this is now clear - you may be offered these and some companies openly advertise these deals but it means some fraud somewhere, and you as the buyer are deemed to be knowledgable and therefore as guilty as the person providing the dodgy contract.

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As you say Alb its still going on and the deals still being offered by a number of people. It is still within the bounds of the law possible to get up to 100% of purchase contract price BUT this is restricted in relationship to bank valuation. It is most definitley not legal to get 100% of contract price and then on top of that fund the purchase expenses and as you so nicely put it get cashback unless someone somewhere is introducing a fraudulent contract. That is not to say it isnt happening - what is being stated on this thread is merely to warn of the risks involved in going down that route. Where it is suspected that it is happening the authroities are letting it go as far as Notary and then Clouseau is jumping out at the last minute as they can prove the intent and there is then a firm case agains those involved.

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       Good God!!!! you would think they would be better served arresting all the none licenced builders and deposit grabers over there?

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Wouldnt you just but then again they go for the easy prey!!

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Unlicensed builders in Spain - never - perish the thought - deposit grabbers - no - where - you must be mistaking Spain for somewhere else methinks!!

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