(Faq's) Frequently Asked Questions.
Q. Could I pay less for my new home
elsewhere?
A. No, just the opposite. We offer you your new home at the lowest list price. Whether you go direct to the vendor or through a third party, the price will not be any less, and in some cases you will actually pay more, whilst being offered a vastly inferior range of homes compared to those we can provide.
The prices are set by the builder, and all prices are correct at the time of advertising. If you see the same product cheaper elsewhere, we advise you to be very cautious.
With regard to bespoke and turnkey properties, as we have established good working relationships with a number of bona-fide builders and architects, we can also help negotiate the best price for you.
Resale properties are handled much the same way as at home, with a valuation taking place and the agent's fees agreed before the property is marketed.
Going through a company like Encompass has several advantages:
*You will get to see a wide range of properties that suit your requirements
*You will have the benefit of our many years' experience, as well as full independent support for you in Spain and the UK
*It will eliminate any possible language problems
*It helps takes away the stress and strain associated with house purchasing.
Q. What other costs on top of the
purchase price can I expect?
A. You should allow an additional 10% on top of the purchase price for legal fees, notary fees, land registry, VAT (IVA) or transfer tax and stamp duty. Your lawyer will give you a detailed breakdown as part of his quotation. If you are considering taking out a mortgage, the bank may charge an arrangement and survey fee, as in the UK and other European countries. An extra 0.5% to 2% of the amount borrowed.
Q. Do you have resale properties I can
view?
A. Of course. In fact, we can show you a wide selection while you are in Spain. Although it should be noted that new build properties are generally more popular. They are often built to a much higher standard than older properties and do not need any maintenance or immediate financial outlay, as they have new kitchens, bathrooms and so on.
Usually we recommend a resale if you are looking to move into a property within a short period of time and are unable to wait for a new property to be built.
When making an offer for a resale property in Spain, you will be asked to pay a holding deposit and be expected to complete the sale within 30 days of making your offer. This means that the whole process is extremely quick. Therefore, you need to ensure the full amount is available within 30 days to be in a position to purchase a resale property. The same restraints do not apply when purchasing a new property.
If you would like to view resale properties, please tell us when booking your inspection visit or personal appointment, and we will be delighted to show you any that match your given criteria and budget at the time. The more notice you give the more time we have to source the properties for you.
Q.
What's the main benefit of buying
a new property?
A. All new properties we sell have a 10-year building guarantee - very similar to that of the National House Building Scheme. Although this type of guarantee has been compulsory in most northern European countries for many years now, it only became compulsory in Spain relatively recently.
Q. Will the property we purchase be
freehold?
A. Yes.
Q. I'm buying a new property, will I
be able to inspect it before I complete?
A. Naturally. With a new property you will be asked to inspect the property with our after-sales team. Then you can confirm everything is to your satisfaction and outline anything that may need to be attended to by the builder, just as you would at home.
Q. I have a house to sell before I can
purchase, can we proceed?
A. If you have around 30% of the purchase price available, without selling your home, you do have options available to you. You can reserve a new property in Spain and secure the price in euros, and then sell your own property within the timescale agreed between yourself and the developer. If your own property sells before your new home is finished, you simply move out to Spain, rent a property, and start to enjoy your new life in the sun! The money you spend on renting a property in Spain is normally offset by the increase in property value gained and, of course, the lower living costs. You then get a brand new home to move into, without any of the normal stresses and strains associated with trying to sell and buy. Some people do arrange a short term re-mortgage of their own home to enable them to do this.
If you do not want to re-mortgage or arrange bridging finance (overdraft facilities) and you do not have 30% of the purchase price available, contact us, we know many financial and construction companies who can help you with minimum payments.
Q. Are mortgages easily available in
Spain?
A. Spain is an ideal place for a home, or second residence, and it may now also be one of the best“ not to mention the easiest“ places to obtain a mortgage. Spanish banks freely lend to non-residents, and mortgage rates are generally lower than most European countries. Mortgages can usually be arranged within 48 hours, subject to status and affordability, and the following being supplied:
* A photocopy of your last income tax return or last three months salary slips
* Your last three bank statements
* If self-employed, your statement of accounts for the last three years
Please note that Spanish banks do not normally carry out credit reference checks; and normally lend up to a maximum of 70% of the property value. All this can be arranged for you by experienced financial advisors.
Q. Will I have to pay a reservation
fee?
A. When you have found your ideal property, a non-refundable reservation fee of £2,000 or 3,000€ will be due. This will ensure that the property is taken off the market as gazumping is illegal in Spain. The reservation fee forms part of a legal contract, which fixes the price as agreed at the time of payment, and guarantees you will not be affected by any future price increases.
This sum will be held by the lawyer, licensed property conveyancer or developer, and the contract of sale will be drawn up for your agreement and signature. If you wish, further transactions regarding the property purchase can be completed in your absence by granting Power of Attorney to your agent or legal representative.
Note: Please do not bring a bankers draft on your inspection visit. A personal cheque is perfectly acceptable as a reservation fee by all bona-fide overseas estate agents and developers.
Q. Can I pay in stages?
A. If you are buying a new build property that is not completed, or is in the process of being built, you will normally agree to stage payments. These vary from development to development, and builder to builder. However, before you enter into any contract, you will be told the amounts that will be due at each date. Typically, after the initial reservation fee, a payment of between 30-50% is required within eight weeks, with the balance payable upon completion. If you are purchasing a resale property, or a new property that is already built, it is very different. After payment of the initial holding deposit, the balance will be required within 30 days under normal circumstances.
For both new and resale properties, once your legal representative has finished their searches and investigations, and all monies are paid over, the title deeds ('Escritura') are finalised, and the property is all yours. All transfers of property in Spain must be signed in the presence of a Notary Public ('Notario'), whose job is not to give legal advice but to witness the signature of the title deeds ('Escritura') on behalf of the authorities.
Q. Should I use a Solicitor back
home?
A. This isn't necessary unless he/she is a recognised specialist in overseas property law, as your solicitor would still have to use a local Spanish lawyer, and therefore you could be liable for two legal bills! All communication from your Spanish lawyer will be in English, so don't worry about understanding legal documents. We can organize an introductory meeting before you buy, or click the MSA link over on the left side of the page.
Q. Do I have to be here for each stage of
the legal process?
A. No, you can instruct your solicitor to act on your behalf, even for the final completion. Lawyers in Spain are responsible for chasing up all information required by their clients. Any information you require can be requested direct from the Spanish estate agency office, the developer or from your appointed legal representative.
Q. What happens with regular bill
payments such as water and electricity?
A. As part of our service we will ensure all your services have been connected. All utility bills can be paid directly from your local Spanish bank account. Normally a direct debit will be set up. We will be at your disposal and will even collect you from the airport, when you are ready to move into your new property, to make sure you are familiar with the area and all the services you require, including furniture shopping.
Q. Should we learn the language?
A. If you're planning to work in the Spanish community it is advisable. Spanish is regarded as one of the easier languages to learn and many people get started using a phrase book or basic cassette tape. For the more serious, there are dozens of low cost language schools that cater for students of all ages and all ability. Expatriate clubs also run language classes. We recommend that you look in the English press when you are there.
Q. What if I want to become a Spanish
resident?
A. Spanish regulations state that anyone who lives in Spain for more than 183 days (around six months) should have official residency. There is no advantage in full time residents not applying for full residency, and this simple process can be done at the local police station, where they will also issue you with a NIF number. This is also required by non-residents if they have any connection with the Spanish tax system, for example owning a property, or drawing interest from a bank.
Q. Can I still receive my pensions or
benefit if I live in Spain?
A. Your UK/ROI retirement pension or other benefits can be paid directly into your bank account at home or abroad. For further information, please visit:
UK - www.dss.gov.uk
ROI - www.welfare.ie.
Q. What is the cost of living like in
Spain?
A. The cost of living in Spain is relatively low. A couple with no mortgage could easily live on 225€ per week and still eat out regularly. This certainly makes any pension or benefits you receive go further.
Q. I have children what
are the Spanish schools like?
A. The standard of education in Spain is generally very high, and since entering the EU, it has become simple to transfer between systems with full recognition of qualifications.
Schools and colleges are widely available and, if your children are young, it's recommended that you put them into the local school. State education is free, and most children are quick to pick up the language. Alternatively, they can attend private international schools where they study in English.
Further information about Spanish schools, both state and private, can be obtained from the Spanish Embassy. Most British schools in Spain belong to the National Association of British Schools (NABS) whose members are visited and approved by British School inspectors.
Q. Can I take my dog or cat to
Spain?
A. Pets may be taken to Spain, although you will need a health certificate from an authorised vet, issued within 15 days of departure, and a certificate of vaccination against rabies. You will also need a certificate declaring that the animal has been kept in an area free from animal diseases. All these certificates must be stamped and legalised by the Spanish consulate. Your pet must also have a microchip inserted. For more information, please call:
The Pets Travel Scheme in the UK on 08702 411710
The Animal Health and Welfare Division in Ireland on 01 607 2827.
Q. What is driving in Spain
like?
A. Generally, it will only take a few days to get used to driving on the right. Many of the road signs are the same as at home and in our experience people adapt very quickly. After all, it is just part and parcel of the adventure! The roads in Spain are normally well maintained and, apart from coastal areas in August, they are far less congested than here. The motorways are fantastic too and can be worth paying a few Euros' tolls for!
Q. Can I drive my UK/ROI registered car
over there?
A. Spanish residents cannot drive a car on foreign plates. If the car you are driving is left hand drive you can transfer to a Spanish plate. Should you wish to transfer your British/Irish car to a Spanish plate, the car must first pass the Spanish ITV (the equivalent of the MOT) regardless of its age. If you are spending less than 183 days in Spain each year then Spanish registration is not vital.
Q. How do the Spanish treat foreigners
who live there?
A. You will undoubtedly find your local hosts to be very tolerant, family orientated and friendly. Spain's recent economic prosperity means that the Spanish are enjoying life to the full, particularly in the tourist areas where new foreign arrivals are seen to be contributing to the financial growth of the region.
Q. What about healthcare?
A. The healthcare system in Spain is extremely efficient and available to all EU residents. As a British or Irish resident, you are entitled to get healthcare through the public system in countries of the European Union (EU), European Economic Area (EEA) or Switzerland if you become ill or injured while on a temporary stay there. Until now, you needed an E form - such as the E111 or the E128 - to get such treatment. Now, these paper forms are being replaced by the European Health Insurance Card. One card is needed for each individual or member of the family. For more information, go to:
UK - www.dh.gov.uk
ROI - www.ehic.ie.
Q. Can I use my electrical appliances
from home in Spain?
A. The electricity supply in most of Spain is 220 volts AC, with a frequency of 50Hz. However, some areas do still have a 110 volt supply. If you are bringing any electrical appliances that are not compatible, you will need new plugs or adaptors. However, it is probably cheaper, and easier, for you to buy these goods in Spain.
Q. Can I rent my property out?
A. Most certainly. We can introduce you to reputable rental agents whilst on your trip or nearer to completion. It is normally better to go to the rental agent closest to the property you have purchased, however, you will also find that some of the major developments offer their own property management service.
Spanish rental agents normally offer a key holding/ management service which will cost around £350 or 500€ per year. They can also find tenants for you and will agree, prior to the booking, the net amount you will receive after they have deducted all of their charges. They normally also offer a preparation service. That is to say if you have a friend who wants to rent your property from you, they will clean the property, change the sheets and so on, for a fixed fee that they will confirm with you.
When booking your inspection trip, tell us that you are mainly interested in buying rental property, and we can then allow time to discuss this aspect of the purchase with you.
But remember you should declare any income to the Revenue Office that you bring back into the country. The department will be able to answer any specific questions you may have. For more information, please visit:
UK - www.hmrc.gov.uk
ROI - www.revenue.ie.
Q. What about annual running
costs?
A. This depends on the price of your property and when you buy. As a guideline, annual running costs for an average priced two/three bedroom property will be somewhere between £1,000 and £1,500. This will include water, gas, electricity, local rates, community fees and house and contents insurance.
Q. Can I take my existing furniture out
to Spain?
A. The short answer is 'yes'. Should you be moving on a permanent basis, you may well want to take some or all of your existing furniture, as well as your prized possessions. After all, you may have spent a long time accumulating what you have and it will make the transition easier. The best option is to use a property removal expert who will ensure all items are packed safely, fully insured whilst in their possession and transported to your new home with a minimum of fuss.
Q. What about furnishing my property from
scratch?
A. "Where can I go to get furniture?" and "Could my property be supplied furnished?" are two questions we are frequently asked. If you are already familiar with Spain and its wide range of furniture stores then you will probably have this already in hand. That's assuming you have the time to make the arrangements.
Here's how we can help:
We can advise on those developments that offer furnished properties or furniture packs readily for sale and discuss this with the sales team on your behalf.
You can discuss your requirements with a member of staff whilst you are in Spain with their local knowledge they will know the best places to shop for the type of products you require. Time permitting we can even take you shopping at no extra cost!
The essence of this is simply that we can offer you a complete service, so that your new property is one hundred percent right for you inside and out.
Q. Can you show us more properties than
you have on your web page?
A. Of course: Yes. Because we offer a personalised service, we normally take the criteria you give us and find the closest property matches in your preferred area(s). If you don't see anything you like immediately, you can either call us and we can help you personalise your search. Hey.....we would be here all day puting pictures on the web.......
With the right people assisting you, purchasing property can be an enjoyable and rewarding affair we at Encompass International Property, with our 20+ years experience can help you. If you still have questions having read this section, please do not hesitate to contact us!