Finance

Do make sure you have sufficient finds in place before you start house hunting! Whether you’re a cash buyer or funding your purchase through a combination of cash and finance, we recommend you talk to an independent financial advisor before your departure.

Typical payment structures

Spain:

Off Plan and New Build, pre completion.

Reservation deposit: 3,000 – 6,000 Euros.
30-50% of purchase price payable within approx 30 days. Some Developers will allow smaller percentage amounts of payments, payable at fixed stages during the period of construction.
Balance due on completion.
Add 10% to the purchase price to cover fees and taxes.

Resale

Reservation deposit: 3,000 – 6,000 Euros.
10% of purchase price normally payable within 2 – 4 weeks.
Balance due on completion, typically a further 4 – 8 weeks later.
Add 10% to the purchase price to cover fees and taxes.

Financing your purchase

There are several ways to finance your purchase.

Re-mortgaging a property in the UK and releasing some of the equity is the most popular option. With interest rates at such low levels and Mortgage Lenders offering a huge choice of extremely competitive products, it’s a great time to shop around for an attractive, low cost mortgage.

Alternatively you may prefer to take out a new mortgage with a UK or Overseas Lender.

Paying in full in cash is another option but not one that’s readily available to everyone! If you are planning to make a part or full cash payment then do not delay when arranging the necessary transfer of monies. Daily fluctuations in the exchange rate can have a dramatic impact on the price of your property. For example, a Spanish property purchased in January 2003 for 150,000 Euros would have equated to £97,000 but the same property would have cost £109,000 five months later as the Euro had strengthened against the British pound.

Consider using the services of specialist currency dealers when transferring any substantial funds overseas. They should not charge for their service plus they are likely to offer a more favourable exchange rate than a bank. If you plan to make a series of staged payments over subsequent months, you can agree a fixed exchange rate thereby making it easier to budget for future payments. An open forward contract with a specialist currency broker enables you to fix the price for up to 18 months in advance of the purchase.

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