Spain - Important Information

Mortgage Quote Line

0845 108 0505

• Mortgages
• Credit Cards
• Loans
• Investments
• Life Insurance
• Home Insurance
• Insurance

Spain - Important Information

1) Please ensure that you will have full title to the property on completion and that the 'Nota simple'(this is the document that confirms the legal registration of the property), is available for the lender. This document is required before a valuation can be carried out.

2) If the ‘Nota Simple’ states that the property is ‘Rustica or Rustico’, it must also state that the property has been registered as a ‘Vivienda’; this means the property has been registered as a ‘habitable dwelling’ and the lender will be able to obtain a legal charge against it.

3) With new properties, find out the date the property will be registered in your name(s), as the lender cannot lend on the security of the property until it has been registered.

4) Whilst all reasonable steps will be taken to secure the loan on your overseas property as soon as possible, delays may occur due to the Spanish legal and administration system.

5) Check with the estate agent/vendor that you are aware of the costs charged by the legal & government authorities for purchasing a Spanish property, noting that the lender will have their own legal costs for assigning the loan (the cost of which they will normally advise when they issue the mortgage offer).

6) It is essential that you take the appropriate independent legal advice if purchasing a new property as would be expected if you were purchasing in the UK.

7) Please be aware that the Notary may be incorporating within his charges, costs for assigning the mortgage and you should establish with the Notary the actual cost before proceeding with a loan application

8) The completion of a Spanish mortgage takes place in front of an appointed Spanish notary and all parties to the mortgage, including the vendor, lawyers and a representative of the lender need to be present. However a power of attorney may be used to sign on your behalf for the mortgage and land deeds. A copy of this power of attorney will need to be presented to the lender in good time before completion.

9) A Spanish bank account will be required and some lenders offer this as part of their service, but not all.

10) It is advisable to arrange your mortgage finance before agreeing to purchase a property. You should never sign anything or make a deposit without ensuring your deposit is re-fundable and you have taken independent advice.

<< Back: Spanish Mortgages