If you would prefer to organise your mortgage in the UK we can arrange this for you by putting you in touch with the appropriate people.
Do please contact us for further information. This service is open to anyone looking to purchase property overseas.
You need a NIE number prior to the purchase of property in the Balearics. If you do not have one it can normally be arranged within 48 hours.
Mortgages can easily be arranged but the rate and amount will depend on the ability to repay and other essentials. Each case is different so please contact for advice.
Up until recent times it was possible to arrange a loan of up to 80 of the bank valuation of the property to be purchased. Now this is more difficult and 70% is much more realistic depending on certain criteria. Proof of your proveable income is required to ensure income is sufficient to cover the payments.
The banks prefer to have a larger percentage of cash deposit from the purchasers. That is, higher than 20%. It is important to take into account that the purchase costs are approx.10% of the declared value of the property on the deeds.
A`property that has a mortgage in place is more easily taken over by the buyer but you must be able to demonstrate that you are able to meet the monthly payments.
In some cases, the loan already on a property can be increased according to the ability to pay. The time it takes depends on several factors: If the loan is already in place, and there is no need to increase the amount loaned, this can be done relatively quickly, possibly 21 days.
A loan that has to be started from "scratch" is usually ready in 30 days. The bank will require all your details, especially last income tax returns and a declaration of income and any holdings etc. to show the bank the level of solvency. Then if in principle, the bank is in agreement with going ahead, they will make an appointment with an assessor to produce a formal bank valuation of the property. Once this is completed, the whole package is presented to the directors of the main branch of the bank for approval. Once this is given the green light, a notary appointment is made to liaise with you and the bank the forms of payment, amounts and cheques. Usually there is also a cash payment to cover "inventory" in the property if applicable. So if all goes to plan a loan can come through in approx. 30 days.
Its important to do the OPTION TO PURCHASE CONTRACT correctly to avoid mistakes and misunderstandings when making the purchase. For this a meeting with a lawyer to go over the proposal regarding the purchase and the conditions to guarantee and protect your rights and of course any monies paid as a deposit.
Please contact to discuss fully.
