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FAQ 's Buying and Selling Direct From
the Owner ( FSBO ) |
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| Q1) I
would like to buy a home direct in Spain but I am concerned
about the land grab situation in Spain as shown on numerous
UK television programs
Q2) I am told that when
you purchase a home in Spain you can inherit any debts
no matter how far back the debt goes, is this correct?
Q3) I have a Spanish Property
I wish to sell in Javea Costa Blanca, I am non resident
for tax purposes, what taxes will I be liable for?
Q4) I have been offered
a home from a friend of mine who says I can buy his home
direct and subrogate the mortgage to myself and save money,
what is subrogation and what is the benefit in doing this?
Q5) I am looking at buying
a home this year and will require a mortgage of at least
90% I have read that 80% is the norm for non residents,
is this true?
Q6) I would like to sell
my home direct if possible but I have agreed to market
it with a major real estate company in Spain, can I do
both?
Q7) I have been advised
to purchase any Spanish home in the name of a Spanish
company, is this necessary? And what are the implications?
Q8) I am told that on many
resale properties it is normal to pay a percentage of
the purchase price under the counter so to speak, Bargain
Homes Abroad are very keen to purchase an older home but
don’t wish to get involved in illegal activities,
can Bargain Homes Abroad refuse?
Q9) I would like to advertise
my home on your site but I am concerned that I will receive
unsolicited mail and calls from advertisers, how can you
reassure me that this will not happen.
Q10) Why should Bargain
Homes Abroad use your services? You are not any cheaper
than many other online providers?
Q11) Bargain Homes Abroad have
a house in the Costa del Sol Bargain Homes Abroad would
like to sell but are not competent at scanning or resizing
pictures, can Bargain Homes Abroad still use your services?
Q12) Bargain Homes Abroad have
a home for sale on a community that will not allow advertising
boards to be displayed on the home, how can Bargain Homes
Abroad overcome this as Bargain Homes Abroad are desperate
to sell?
Q13) Bargain Homes Abroad are
looking at buying a residential home in Spain in 2006
when the new pension rules come into force for SIPPS,
will Bargain Homes Abroad be able to borrow against the
funds Bargain Homes Abroad have available.
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Q1)
I would like to buy a home direct in Spain but I am concerned
about the land grab situation in Spain as shown on numerous
UK television programs
A) You are right to be concerned and should never buy a
home without taking legal advice from a lawyer speaking
your own language, the problem relates to land designated
“rustico” (rural) if you are buying a home on
already urbanized land (urbano) which the majority of coastal
properties for sale are, this problem will not occur. For
more information use the “ask a lawyer button”
http://www.bargainhomesabroad.com/owner_direct/owner_direct_legal.htm
Back up to the question
Q2) I am told that when you purchase a home in
Spain you can inherit any debts no matter how far back the
debt goes, is this correct?
A) Yes you are quite right, however your lawyer should discover
all this in their searches prior to you purchasing the home;
however some instances have occurred where one or other
charges have been overlooked leaving the new owner with
the problem. It is imperative therefore to appoint a lawyer
that has been recommended to you and not leave it to chance.
For more information on the implication of unpaid bills
and taxes go to:
http://www.bargainhomesabroad.com/owner_direct/owner_legal2.htm
Back up to the question
Q3) I have a Spanish Property I wish to sell in
Javea Costa Blanca, I am non resident for tax purposes,
what taxes will I be liable for?
A) A non resident seller is liable for payment of a 35%
Capital gains tax on the profit of the sale of their home
unless it was bought before Jan 1st 1987. There are exceptions
available for those who have owned their home since 1994
and before. Also the vendor can offset against the gain
made on the sale against other costs. E.g. Home improvements,
Real estate commissions etc provided you have invoices from
legal companies.
Back up to the
question
Q4) I have been offered a home from a friend of
mine who says I can buy his home direct and subrogate the
mortgage to myself and save money, what is subrogation and
what is the benefit in doing this?
A) Mortgages in Spain are normally for a fixed term and
amount and are not normally variable and most carry early
redemption penalties; however they can be transferred (subrogated)
to a new owner at the same terms which can be an advantage
and also save on arrangement fees which can be as high as
1.5% of the mortgage. However the disadvantage is that the
loan amount might not be enough and as stated previously
cannot be varied. In any case you should always ask your
lawyer to negotiate this for you.
Back
up to the question
Q5) I am looking at buying a home this year and
will require a mortgage of at least 90% I have read that
80% is the norm for non residents, is this true?
A) The normal rules for non residents buying in Spain is
that the loan to value should not exceed 80% is correct,
however the maximum loan is 80% of the value not the purchase
price, hence if you buy a “bargain” you may
well obtain a greater percentage loan of the purchase price,
conversely if you purchase an overvalued home the percentage
could well be a lot less. Never buy a home without an independent
valuation.
Back up to the question
Q6) I would like to sell my home direct if possible
but I have agreed to market it with a major real estate
company in Spain, can I do both?
A) Yes provided you have not signed an exclusivity contract
with your agent, there is no problem; indeed Bargain Homes
Abroad believe our direct service to be complimentary in
enabling more people to see your home than before.
Back up to the question
Q7) I have been advised to purchase any Spanish
home in the name of a Spanish company, is this necessary?
And what are the implications?
A) Generally speaking for properties under €300.000
there are not a lot of advantages and your costs increase
as there is the cost of setting up the company as well as
the annual costs, however if the company holding the asset
is an owning company with no activity (sociedad patrimonial)
and also when more than 50% of its share capital is owned
by fewer than 10 shareholders then on subsequent disposal
there is a saving to be made on the capital gains tax payable.
However depending on your own tax situation you should always
consult a specialist tax advisor.
Back
up to the question
Q8) I am told that on many resale properties it
is normal to pay a percentage of the purchase price under
the counter so to speak, Bargain Homes Abroad are very keen
to purchase an older home but don’t wish to get involved
in illegal activities, can Bargain Homes Abroad refuse?
A) Yes of course you can refuse and you should since as
you state it is illegal. Prior to 2002 it was quite common
for properties purchased in Spain to be purchased in this
way with the cash amount called Black or B money. These
days any transaction involving more than €3000 that
involves a public notary is declared. Our advice, look for
another home.
Back up to the question
Q9) I would like to advertise my home on your site
but I am concerned that I will receive unsolicited mail
and calls from advertisers, how can you reassure me that
this will not happen.
A) This is a good question, Bargain Homes Abroad have devised
the enquiry form to conceal your identity, would be purchasers
will be forwarded to you without any of your details being
visible, you are in control, and if the enquiry seems genuine
then of course call or email them. Before giving out any
personal details make sure you are satisfied the enquirer
is genuine.
Bargain Homes Abroad never give out your details to an enquirer
unless you have specifically requested Bargain Homes Abroad
do so.
Back up to the question
Q10) Why should Bargain Homes Abroad use your services?
You are not any cheaper than many other online providers?
A) This is true but as a genuine home site selling homes
world wide Bargain Homes Abroad already receive in excess
of 60,000 hits per week from would be purchasers, coupled
with the fact that Bargain Homes Abroad are easily found
on all the major search engines looking for Property bargains.
Selling
my Home Direct
In addition Bargain Homes Abroad provide the following services
for free, “ask a lawyer” where you ask legal
questions on Spanish home purchase. “Obtain a Spanish
Mortgage quote” on line application requests or approval
in principle, coupled with the simplest payment plan on
offer, a one of fee for one year and in the unlikely event
your home has not sold Bargain Homes Abroad will renew it
for a further year at half price.
requested Bargain Homes Abroad do so.
Back
up to the question
Q11) Bargain Homes Abroad have a house in the Costa del
Sol Bargain Homes Abroad would like to sell but are not
competent at scanning or resizing pictures, can Bargain
Homes Abroad still use your services?
A) Yes of course, all Bargain Homes Abroad ask is that you
take 4 or 7 pictures of the home and print off the register
and Property submission forms, complete the details and
send everything to us in the post and Bargain Homes Abroad
will do the rest, all you need to do is be able to receive
emails from would be enquirers.
Back
up to the question
Q12) Bargain Homes Abroad have a home for sale on a community
that will not allow advertising boards to be displayed on
the home, how can Bargain Homes Abroad overcome this as
Bargain Homes Abroad are desperate to sell?
A) This is a common problem in Spain and one reason why
Bargain Homes Abroad set up this service to increase exposure
of home for sale, many communities also operate 24 hour
security which means that would be purchasers can’t
get in to view the home even if “For sale” boards
were allowed, which is why many people have relied on local
agents to sell their properties but now there is an alternative.
Back up to the question
Q13) Bargain Homes Abroad are looking at buying a residential
home in Spain in 2006 when the new pension rules come into
force for SIPPS, will Bargain Homes Abroad be able to borrow
against the funds Bargain Homes Abroad have available.
A) The rules are changing from the 6th April 2006 for UK
pension fund holders permitting the purchase of residential
home as an asset class, many commentators are expecting
a bonanza in overseas home sales but you should always seek
independent financial advice from a regulated financial
adviser in the UK.
Back up to the
question |
Disclaimer
These frequently asked questions (FAQs) are for general
guidance and information only and represent our understanding
of the legal and financial situation regarding the purchase
of Spanish home and should not be relied on, always consult
an independent lawyer, mortgage broker or financial advisor
before making decisions as Bargain Homes Abroad cannot
accept any legal liability for errors or omissions contained
within the replies. |
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