Last updated on February 24th, 2020 at 05:19 pm.
Post-2008, the Spanish banking sector made a series of gains from property repossessions. Now, banks are eager to sell these properties to recoup losses from the recession era. These homes are available at extremely attractive prices – however, it is essential to be vigilant when searching for repossessed property for sale in Spain. As is the case with buying a home in any foreign country, you need to have a proper understanding of the taxes and legal fees, as well as keeping your eyes peeled for any hidden costs. In this article, we discuss what to keep in mind if you’re considering purchasing a repossessed property in Spain.
Hire an independent solicitor
First and foremost, it is essential to hire an independent solicitor to help you manage the purchase process. Remember, you would never purchase a property in your home country without seeking legal counsel. Therefore, do not assume you can navigate Spanish national and regional property laws on your own. This is especially the case when you’re dealing in Spanish repossessions direct from banks; in order to make sure you have equal bargaining power, you want to have a knowledgeable solicitor on your side. They will be able to guide you through the process step by step, arranging due diligence.
Make sure the building is in good condition
If you’re searching for repossessed property for sale in Spain, it’s not unusual for these homes to be in a state of disrepair. For instance, there might be kitchen equipment, light fixtures, or bathroom fittings missing, or there may be damp or musty smells. However, this isn’t anything to panic about; with some care and attention, these properties can look as good as new. That said, it is still essential to hire an architect or surveyor to ensure the building is habitable. Your solicitor will be able to advise you on a reputable local company to carry out these checks.
Furthermore, it is also common that repossessed properties may have had their water or electricity supply disconnected. Your solicitor will be a key interlocutor between you and the utility companies; they’ll be able to make sure all the documentation is in place and that there are no outstanding bills. If the utilities have been cut off, your surveyor will be able to advise you on the cost of reconnecting these services.
Don’t expect to be able to move in immediately
As implied above, buying a repossessed property in for sale in Spain can take time. Negotiations with the bank can take months to complete, especially if you require a mortgage to finalise the purchase. From here, the property may require extensive maintenance before you can move in. In addition, if you plan to rent the property to holiday makers part-time, you’ll need to make sure it meets the legal requirements. Once again, your solicitor will be integral to ensuring you comply.
Repossessed property for sale in Spain: Your dream home is within your reach
The process of buying a repossessed property can be challenging, but you shouldn’t let this intimidate you. With the proper legal advice, you can make your dreams a reality. An independent solicitor will be able to help you draw up a detailed budget, ensuring you have a complete picture of all the additional costs, including legal fees, external fees and taxes. With their help, you’ll be able to navigate Spanish property law with confidence and purchase a stunning home for a bargain price.