10.15.07
Posted in Articles, Buyer's guide, Canary Islands, Spain at 12:30 pm by admin
A recent article by Mark Stucklin (Spanish Property Insight), strongly recommends using an independent Spanish lawyer as opposed to one appointed by the agent or developer. “It is true that you can buy a property in Spain without using a Spanish lawyer but it would be very unwise on your part.”
Buying a property in Spain
Buying or selling a property in Spain, just like back home, can be a detailed and often complicated process. Unexpected issues and costs often pop up unannounced.
In Spain and the Canaries, you run the same kinds of risks when you buy or sell as you do in the UK – meaning a good lawyer is essential. What you need is a Spanish lawyer, who speaks English and is independent from both the estate agent and the developer. You need one that can give you impartial advice and look solely after your interests.
Buying from a Developer
You’ll need a lawyer if you’re planning on buying off-plan. He or she should make sure the contract you’re about to sign gives exact details of what kind of property the developer is going to produce, with all the correct licences and guarantees and, as much as possible, within the specified time frame.
Otherwise, you are completely unprotected and you could end up with…well, anything, really. What’s written down in the contract is paramount; it’s your only genuine security.
New development projects often take more time than the developers predict. A Spanish lawyer can make sure the contract suits you but at the same time is reasonable and realistic.
Buying a Second Hand Property
For resale properties, the lawyer needs to make sure that the person selling the property is the legal owner and that there are no outstanding debts on the property. In Spain, debts stay with the property not the owner, so if not properly checked you could end up inheriting all kinds of hassle.
Your lawyer will also check that the physical characteristics (size, number of bedrooms etc.) of the property fully correspond to the details in the title deeds.
These are two fundamental checks that the lawyer needs to make. There are countless others, depending on the property type, location and circumstances – everything from water rights to community fees.
Using an Independent Spanish Lawyer
Most people use the lawyer appointed by the agent or developer because they assume it’s the easiest and safest option. In some cases, like on an inspection visit, they simply won’t have time to look around for an independent lawyer.
“63% of British buyers end up using the lawyer recommended to them by their estate agent. Of these 20% report being very dissatisfied with the legal service they receive.”
Normally, the agents just want to close the sale as quickly as possible. In a lot of cases, the staff get paid on a commission-only basis, so of course they’ll recommend any lawyer who’ll facilitate the quickest easiest sale for them – often their in-house lawyer.
You can never be too sure about the kind relationship that exists between the agent and the lawyer. There could be all kinds of deals going on. This is why you need a lawyer who you can be certain is working for you and you alone.
It’s best to find one before you begin the purchase process. Ideally you should have found a lawyer before you contact an agent. That way, you won’t be pressurised into using the agent’s lawyer.
Locating an Independent Spanish Lawyer
There are plenty of English speaking Spanish lawyers in Spain and on the Canary Islands. The easiest way to find a good one is normally just through recommendations from friends and acquaintances. The British Consulate can supply you with a list of English-speaking lawyers in your region. You’ll find a list of all the British consulates in Spain at the following link – British consulates in Spain.
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Posted in Articles, Spain at 2:27 am by admin
Most people dream of having their own holiday home – a place in the sun, where they can jet off to at any stage of the year, by themselves or with family and friends.
Getting approved for a second mortgage however, is often more difficult than for primary mortgages, so it’s a good idea to weigh up the advantages and disadvantages before you invest.
Benefits of owning a holiday home
Provided the market remains prosperous, you should be gaining equity on the property every year. You can also rent it out during the periods you are not using it and help to pay off the mortgage.
Going on holidays will be a much more pleasurable experience, knowing that the place your staying in will be equipped with your favourite foods, clothing and recreational items. You’ll have a lot less stuff to pack.
Your vacation home can become a retirement retreat, if you decide that you’d eventually like to live there full time. Once you’re ready to move, you can always sell the main property and invest the money in the holiday property – your new home.
Financial Considerations
It’s often looked at as a luxury available solely to the wealthy and to some extents this is largely true. Approvals for second mortgages are more difficult to obtain and higher down payments are often required, as lenders feel borrowers are generally more prone to missing payments on their holiday homes.
So, even for those in a position to be afforded a second mortgage, there are still a number of financial considerations to take into account…
One of your main considerations will be cost.
Even though you won’t be living there the whole year, you’ll still have to pay all the traditional costs that apply to your primary residence, like property taxes, and utility bills etc. Renting your holiday home out can sometimes mean that you’re no longer eligible for certain tax exemptions or that you’re liable for more tax payments.
Another thing to consider is whether or not you want to spend all your holidays in the same location. Staying in a hotel can be expensive (especially with a large family) and the thought of having your own holiday home is a nice idea but if you’re someone who prefers to travel to different places every year, maybe you should consider other options.
Is the holiday home suitable for winter and summer vacations? If not, you might end up spending additional money on hotels and other services that the holiday home should negate. Also, the burdens of meeting the bills that come with a second home might actually limit your ability to take a second vacation.
Guidelines
Make sure you research both the area and the property extensively before you sign on the dotted line. Spend some time in the location before taking the plunge.
Look at the different properties types available. Less expensive timeshares, for example, can make you feel just as at home but could save you substantial amounts on property taxes, fees etc.
Know the tax laws. What you’re planning on doing with the property can greatly affect the amount you’ll be taxed or allowed to deduct. Find out exactly what you can and can’t do with the property and how certain things like renting it out will affect your tax situation. There are numerous English-speaking tax professionals in both Spain and the Canary Islands who can help you with this.
Turning dreams into reality
Maybe you’re not yet in a position to buy a holiday home but some years down the line you might be. Consult a financial planner or advisor, tell him about your plans and he should be able to come up with realistic targets that can help you reach your financial goals. If you stay disciplined and start far enough in advance (i.e. now) you should be able to turn your dreams of owning place in the sun into reality.
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08.02.07
Posted in Articles, Spain at 9:18 am by admin
Every year more and more people are choosing to escape the dismal Northern European winter and head off to the sun for the Christmas Break.
Some of the top winter holiday destinations include; the Canary Islands, mainland Spain, the Balearic Islands, Greece and the Greek Islands, Turkey, the Caribbean, Italy, Portugal, USA and France.
Out of these, the Canary Islands and Spain are by far the traditional favourites amongst English holidaymakers.
Christmas time can be a stressful period, for everyone. Too much turkey; too many relatives; too much bad TV; too much booze; too much rain, cold and darkness. Let’s face it after the age of around 12, Christmas is just hassle.
Traditional Christmas’s spent at home with the extended family sat in front of the TV for days, bloated and unable to move, are becoming a thing of the past.
In the midst of months of darkness, nothing could be better for us than a dose of winter sunshine.
Christmas and the New Year period is now one of the busiest times of the year for UK tour operators. So, where’s the best place to go…
Top Winter Sun Destinations
Canary Islands & Spain
“A ticket to the Canaries is a passport to sunshine”.
The Canary Islands have what’s simply described as a “perfect climate”, all year round. It’s never too hot and never ever cold. Daily temperatures average 22 degrees Celsius (72F). During the winter months sunshine averages around 6 hours per day. For water sports fans, all you’ll ever need, even in January, is a short wetsuit.
The Canary Islands are the only place in Spain where you’ll get guaranteed sunshine as well as guaranteed warmth at Christmas time. It’s no wonder these paradise islands consistently remain the number one winter sun destination.
Southern Spain and the Balearics can get almost as much sunshine in winter, but they’re always a lot colder, especially at night. Temperatures rarely get above 15 degrees Celsius (59F). It’d be kind of like late April or early May in the UK. It rains about one day out of three.
France
Although not as popular as Spain with UK visitors, France is nevertheless a popular choice. The best place for winter sun is along the Cote d’Azur, from Toulon all the way to Nice and the Italian border. This is one of the most beautiful areas in France. It includes part of the French Riviera – the famous vacation resort. The name Cote d’Azur, meaning azure coast, was given to this region because of its spectacular blue sea and sky.
Unfortunately though, it’s still quite cold here in winter, with average temperatures of only around 11 or 12 degrees Celsius (52 to 54F). Sunbathing might be a bit of a challenge and actually going swimming, well…
Florida and the Caribbean
Like the Canaries, Florida and the Caribbean have a perfect winter climate. In December and early January it’s dry with low humidity and warm with average temperatures of 24 degrees Celsius.
With cheaper flights every year, more and more holidaymakers are travelling further a field than Europe for their dose of winter sun.
Some of the islands can be quite wet though, but only for brief periods and normally at the same time each day.
Portugal
Portugal, another popular destination, has a mild year round climate. The country receives a lot of sunshine, especially in the south. Average temperatures in Portugal range from about 70 °F (21 °C) in July to about 50 °F (10 °C) in January. The Algarve coast can be very sunny all year round but often unsettled.
Austria and Italy
Cities like Rome and Vienna are beautiful at every time of the year and never cease to attract visitors. Then there’s the ski slopes and the sunspots of Sardinia and Sicily.
Benefits of sunshine
As well as fresh air and exercise, everyone needs a certain amount of light. Most doctors will agree that a dose of winter sunshine can have a significant impact on our general wellbeing.
With the massive influx cheap airlines and some almost ridiculously cheap airfares, the world has rapidly become a much smaller place. Escaping the grey skies and heading for the sun has never been easier or more affordable, no matter what time of the year it is.
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