Archive for the ‘Spanish Property’ Category

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100% Spanish Mortgages Now Available!

Thursday, April 15th, 2010

Next week under their trading name of Your Spanish Mortgage IMS will be launching their new service aimed at promotion and marketing of bank owned or funded developments in Spain which have unique mortgage facilities attached to them.

As the year progresses more of these type of offers will come to the table. Every bank in Spain is now considering how to most effectively reduce the level of unsold stock they hold and are developing bespoke and attractive mortgage terms to encourage buyers and to provide access to buyers who have limited deposits and would normally be precluded from buying in Span due to lack of capital.

All banks will still require that clients fit their designated criteria on incomes and are able to provide evidence of this but the banks will take a more flexible approach to risk assessment where the client is committed to buying one of the banks own properties and in many cases will provide up to 100% of purchase on a loan.

Under Your Spanish Mortgage brand IMS will provide a transparent and cost effective service which includes securing of the property and all mortgage related work and will continue to work with the banks to develop and find further interesting and lucrative mortgage deals attached to good value and fully legal new developments.

Using long established relationships IMS are working hard to ensure that these types of deals; readily available and accessible to residents of Spain; are also provided to non residents and will update their portfolio on a regular basis.

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Tags: Spanish Banks, Spanish Mortgages
Posted in Spanish Mortgages, Spanish Property | No Comments »

Beware Of Hidden Taxes When Buying Bargain Property In Spain

Thursday, March 11th, 2010

Back a few years ago it was common practice for buyers in Spain to pay to sellers an element of the transaction in cash and declare the value of the property at completion at a lower amount than actual purchase price. Clearly, this activity was illegal and an avoidance of transfer tax on behalf of buyer and capital gain tax on behalf of seller. It was however indicative in the system with even Notaries turning a blind eye when briefcases full of cash were blatantly counted in front of them.

Because money was flowing into Spain tax authorities rarely questioned transactions where clearly the property price being seen as being paid was very low in comparison to either the formal valuation of the property, the minimum amount registered as value at Town Halls or the mortgage level.

How times have changed. Black money transactions have now disappeared from the Spanish system. The arrest and imprisonment of a number of Notaries and lawyers put paid to individuals involved in the transactions being willing to knowingly allow it to happen and it is now accepted by all that it is fact breaking the law not just something that is an accepted practice within Spain.

In 2 years, I have seen no completions where black money has even been suggested as part of the transaction. It just does not happen any more.

How perverse therefore it is that the tax authorities within the regional governments who are desperate for cash are now questioning perfectly legitimate transactions where buyers have bought and paid a price that reflects the current depressed property market or are achieving big discounts on asking price because owners are desperate to sell.

The authorities are now investigating closely all property transactions; as they have little else to do; taking the Town Hall value ( Catastral value) multiplying this by up to 2.5 times and then if you buy at a level below this sending out tax bills for the difference between the tax correctly paid on the actual purchase price and the value the regional government are stating you must have made.

It is almost impossible for you to prove you did in fact pay the amount you signed for at Notary and that no black money transaction took place and as with all tax authorities they can state what ever they believe to be true and apply a further taxation at will. Failure to pay the extra cash they are demanding will result in an embargo being placed on the property.

It is almost beyond belief that in an environment where everyone knows bargains are available and property prices have fallen so heavily and in an environment where Spain needs to kick start its tourist and property industry that regional governments who have very local agendas rather than national ones are using such tactics to fill their coffers.

In the days when they could have legitimately pursued individuals where blatant black money transactions happened on a regular basis they chose not to. Now this does not happen and the reason for the low purchase price is because that is how much is being paid for the property they are insisting that you in fact paid more The tax authorities at regional levels are now telling buyers what the purchase was in “their view” and therefore how much tax you owe.

It is important before you complete on a property in Spain you ask your lawyer to check the minimum Town Hall value apply the 2.5 times increase and then check what you are actually paying does not fall below this amount and if it does that the Lawyer makes you aware of what the tax authorities could say after completion you owe even though in fact you legitimately owe nothing.

Please get a grip Spain! you are ruining your own country. Lack of transparency, government departments who do as they please with no ability for you to argue they are wrong will eventually scare any buyers off and take Spain back to a third world economy.

Buyers before you complete on that great bargain take as many steps as you can to ensure a nasty tax bill is not going to hit you a few months down the line.

It is about time Europe stepped in let us hope someone finally challenges these practice via the European courts and the tax authorities get told to refund the tax they have illegally taken.

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Posted in Spanish Banks, Spanish Economy, Spanish Mortgages, Spanish Property | No Comments »

Get A Mortgage In Spain With Nothing To Pay For 3 Years!

Friday, March 5th, 2010

Further to my article on the flexibility of Spanish loans where you are buying bank stock. In an effort to sell the stock held directly by the bank one lender in Spain is now offering to non-resident buyers the following mortgage facilities.

  • 80% of valuation or purchase price whichever is lower
  • 0% opening fee
  • 0% redemption penalty for first 3 years
  • Rates from 1.72%

No monthly payments for first 3 years

No interest rolled up

Terms up to 50 years to age 80

In order to qualify for the loan a property must be bought from the banks direct stock.

More information on property can be found at Your Spanish Mortgage.

Further information available from heather@imsmortgages.com

Details of an example property is shown below

Price
€ 274,100

Loan
0 € for 3 years.

Type: Studio or Apartment

  • Location: Mijas (Malaga)
  • Address: Urbanización Playa Lucera, A-32
  • Postal Code: 29650
  • Area: 158
  • Bedrooms: 2
  • Bathrooms: 2

General Characteristics

  • 158 m² penthouse in Mijas 20 km from Marbella and 14 kilometers from Fuengirola.
  • It is distributed in living room, kitchen, 2 bedrooms and 2 bathrooms.
  • The common area has a pool and landscaped garden.
  • It is located 20 meters from the sea, beachfront, located in a quiet urbanization.
  • TL4 Property Reference:
  • This housing is included in the Housing Bancaja Commitment 2010. Buy your home now and pay nothing to Bancaja for your mortgage for 3 years!.

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Tags: Banks In Spain, Spanish Mortgages, Spanish Property
Posted in Spanish Banks, Spanish Mortgages, Spanish Property, Uncategorized | No Comments »

Spanish Banks Desperate To Sell Their Growing Property

Friday, February 26th, 2010

More and more banks in Spain are offering discounts to current valuation on properties they own or are in the process of repossessing.

Bank stock now provides probably the widest and most cost effectively priced property you can find.

Many properties are very much resident style property being in major Cities or areas within coastal regions that are not suitable for holiday homes but if you look hard enough a few gems are around.

Considering bank owned stock before buying is good for clients for two key reasons. The first being the price per square meter you can achieve and secondly because despite tight criterias on finance for non residents of Spain each bank is far more flexible on underwriting and loan to values where the client is buying one of the banks own stock.

There is no hard fast rules each case is taken on an individual basis and individual merit but getting up to 100% Spanish mortgages for right profile client is possible.

In most peoples book this activity is a form of blackmail “buy from us and you get a loan don’t buy from us and loan will be difficult and restricted”. It however works for both parties in the current environment and should not be ignored. Individual private sellers may have issues with it as selling a property in Spain at present is tough enough without the banks being your main competitor for the limited buyers available but until bank stock flows through the whole market will remain static. Perhaps it is just a pill we all have to swallow for the long term good.

If you are a buyer the ability to buy keenly priced property without parting with chunks of your own cash is now more of a reality again; as long as you source the property from the bank you are getting finance from.

Clients would be well advised to talk to brokers who can check up front what might be available if a client buys from the bank. The client then can make any offer to the bank secure in the knowledge the mortgage finance fits their budget and is available.

A good Spanish mortgage broker will be able to search the banks portfolio for you and provide details of possible purchases and then speak to the bank and get an agreement in principle for that property should you decide to proceed.

For more information contact us here.

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Tags: Spanish Mortgages
Posted in Spanish Banks, Spanish Mortgages, Spanish Property | No Comments »

Low Rate Spanish Mortgages -Update

Tuesday, February 9th, 2010

Further to my article on yen mortgages supplied by Dominion credit I have received 2 further communication inputs from clients who have applied for a mortgage via Low Rate Spanish Mortgages.

Over the Christmas period Low Rate Spanish Mortgages pulled back their pay for click and paid for link activity but are back with a vengeance. They state 800 applications were approved last year. This is pretty spectacular as even at the height of the selling market we; who were the leading supplier of non resident loans; completed on about 500 mortgages each year. Given lack of non resident sales in Spain last year they must have cornered the whole market with no-one else lending at all!

They say they charge no fees but the feedback I have received indicates you are asked to pass an amount of money apparently for a valuation and this is payable upfront but the property is not visited a desk top valuation is done and what is considered for the valuation is not clear.

The Chief Executives house in Mexico which is being raffled in a spot the ball competition which was due previously to have the winner announced in November 2009 has now been extended to when they have 76,000 entries. At € 25 a pop, this would pull in 1.9m euros for the owner if closing date does not get extended again.. European competition laws that cover this type of competition appear to be being contravened.

Many quality websites and portals like Eye on Spain, Guardian financial site are accepting Google ads giving credence to the company.

It is amazing that no-one checks the advertisers on their website.

The solution to this surely sits with the companies that allow the advertising to be run who should undertake far more due diligence to ensure the advertiser is following European laws.

See latest feedback on Low Rate Spanish Mortgages below .
The comments from Clive Ballard are posted below.

As you say, Dominion Credit and Finance website is new, The name was only registered Jan/Feb 2009. Low Rate Spanish Mortgages were advertising the Yen mortgages in Oct 2008. The DC&F website, like the LRSM website is not very professional for the nature of what it is supposed to sell, and the office in Singapore is not an office but only a phone answering service. Like yourself I could not find any references to Henry Braithwaite in the banking world. I phoned/e-mailed him on a number of occasions in March 2009 requesting information on agents, other than LRSM for these mortgages.
I got no responce to the messages left.
Since DC&F were not contactable, and had no website until Jan 2009, I wonder how LRSM were able to offer their mortgages in Oct 2008, and purchased the domain name in May 2008.

Low Rate Spanish Mortgages charge a non refundable, 500 € to apply for a Yen mortgage.
I applied for a mortgage from them in Jan 2009, when there office was in Valencier. Approximatly 6 weeks later when I chased the mortgage, they had apparently moved to Bilbao, though were working through a UK phone answering service. When they rang back, I was told the morgage was not granted, due to the financial situation, but if I liked to apply again in 3 months (and pay another 500€) the situation might have changed.
It seems to me that the only ones making money out of this, are “Low Rate Spanish Mortgages”, a 1/2 man run business who as well as running lotteries, also run a dating site under their other company name of Marverose S.L
They also have interests in an Estate Agents (wherepropertysells.com), though I think this may now, have closed.
N.B. The original UK company named Dominion Credit and Finance went bust in the 1990′ies.

Brian McKenzie says:
January 25, 2010 at 12:17 pm

Hi.
Similar story as clive only this time they said the mortgage was not approved because the valuation was wrong,which made no sense as no valuation had been made on the property. This email stating the above information was sent to me only after repeated attempts to contact them and also they said that they had sent me an email stating this a month previous which was total rubbish. Further attempts to contact them to clarify this has been ignored. I am now quite sure after reading Clives letter that I have been well and truly scamed..
B.Mckenzie

G F Crudgington says:
February 22, 2010 at 4:46 pm

Like Bryan & Clive I have also had similar experience with Low Rate Spanish Mortgages and paid £228 for survey only to find that the survey was never done and the mortgage was refused on the basis of an “In House Valuation” made by a company Dominion Credit and Finance located in Singapore, thousand of miles away from my property in France and that the loan was below the Dominion Credit and Finance funding level. Communications have not been good. I doubt whether they will refund the money paid for a survey which was never carried out. I had hope that it was all above board but I am now convinced that it is a scam and it is highly unlikely that I will get the survey fee back.

However we have received this positive comment from a Mrs Barbara Gosling in Mexico

I read your warning with interest!

While I cannot comment on Clive’s own application, all I can say is that I found the service provided by LRSM to be of an extremely high standard. Indeed, thanks to them I am happily residing in my new property soaking up the sun.

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Tags: Low rate spanish mortgages
Posted in Spanish Banks, Spanish Mortgages, Spanish Property | 3 Comments »

Polaris World Go Bust!

Friday, January 15th, 2010

Polaris World have announced they are seeking to go into receivership.

How exactly this will affect those purchasers, whose properties have no yet been built is as yet unknown.

Each phase was funded by a different bank the key banks being

  • Bancaja
  • CAM
  • Caja Murcia
  • Banco Popular

Whilst all these banks will have provided Bank Guarantees protecting clients deposit monies most phases have now fallen outside the agreed dates for evoking the guarantee so clients may have to fight through the courts to get their money back, be offered a suitable alternative or have unit finally finished by another buyer of the whole development or phase.

If the clients lawyer did not inform the client at the point the delay on build had met bank guarantee rules, the bank guarantee may now be null and void. Any clients affected should immediately contact their lawyer to discuss their particular situation. If the bank guarantee has lapsed, changing lawyer and speaking to a lawyer from who is independent may be the most appropriate solution. There are already a few lawyers looking at class action to reduce court costs to individuals and a meeting is taking place next week W/C 18/01/10 to clarify exact situation and what action can be taken by those affected.

For clients who have already completed without golf course, hotels or facilities being in place it could be a long time before these are now developed if ever.

The Polaris developments which were dreamt up in much happier times and supposed to provide self-contained holiday villages at affordable prices will sadly have turned into a nightmare for many UK clients.

Over time these issues will be resolved and one day hopefully the Polaris vision will finally live up to its expectations. For investors it could however be a long haul.

If independent legal advice is required contact heather@imsmortages.com outlining which development phase was bought and current situation along with your full contact details. Your enquiry will be passed to a lawyer already taking action on behalf of other clients.

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Spanish Mortgages: A Review Of Lending December 2009

Wednesday, December 2nd, 2009

Despite the current banking issues obtaining a mortgage for buying in Spain is still available. Lenders like Halifax, Lloyds with their UK roots remain committed to keeping a presence in Spain.

Spanish banks are also still providing finance.

The key change from a couple of years ago is the risk criteria’s are now rigidly followed; pricing this being the margin above Euribor the banks charge has increased considerably and overall terms and flexibility of product have tightened. Euribors themselves remain at an all time low, which means despite margin increases rates are around 2.5%.

The majority of banks are now back to 2001/2002 loan to value criterias. This means most banks provide a maximum of 60% of purchase price and in most instances limit this also to 60% of purchase price. A few banks remain that may provide a loan larger than their percentage of valuation but they  will still have maximum limits on what percentage of purchase price this will be. 100% financing is a thing of past.

One bank is currently offering 70% of valuation to non-residents as standard and Santander via its Abbey National arm will consider 80%.

Underwriting is very rigid in current environment and some purchasers particularly those involved in the property industry in UK may find themselves precluded from borrowing however for most clients who fall within current debt to income ratios; whilst the level of paperwork required to prove affordability will be very high; a loan will still be available.

Interest only facilities for up to 5 years are available but most Spanish banks are now only offering repayment loans with terms up to 30 years.

Maximum ages have dropped with most mainstream lenders now wanting the mortgage paid off by age 70 years.

Most buyers still find obtaining a Euro mortgage the most attractive option given current exchange rates between the pound and the Euro. Many cash buyers still want to consider a Euro loan with a view to paying mortgage off when and if exchange rates recover to historical levels. Taking a currency loan remains unusual and only suitable for those clients who understand and can manage the currency rate fluctuations.

It is difficult to see banks improving flexibility, relaxing criteria’s or aggressively seeking lending in 2010 however, the market seems to have bottomed out and it is expected that current criteria’s will not worsen in the next 12 months.

Posted in Spanish Banks, Spanish Mortgages, Spanish Property | No Comments »

When Can You Buy Distressed Property In Spain?

Wednesday, November 18th, 2009

When buying a distressed property in Spain you have a number of points at which you can try to secure the property.

The first point is when the current owner is experiencing difficulties but before the bank starts any action (where a mortgage is involved). The owner may be willing to drop price significantly to avoid repossession being instigated particularly if they are a Spanish Resident.

The second point is when the bank has first started action but before the courts become involved. At this point any price agreed would have to at least cover the banks loan and be in agreement with bank to delay further action to allow sale to take place

The third point is at auction; once the court action has been started it is very difficult to halt and auction must take place. At auction, you could buy property for 75% of the auctionable value as recorded on Nota Simple. This will normally be 75% of original valuation.

The fourth point is after auction and before the bank has to take property over. At this point, a bank may be willing to part with property for below the actual mortgage amount outstanding rather than take over responsibility for property, pay transfer taxes and have to maintain property until a future sale. This point is ideal for cash buyers who will get best price possible.

The final point you can buy a distressed property is  when the bank has taken into onto their books. Some banks appoint their own agents and often these properties can be seen on banks websites. At this point the bank will be looking to cover loan plus any costs associated with taking property over so price almost certainly will have increased. It is however possible to negotiate and the bank may also provide a Spanish Mortgage at loan to values not normally achievable, to allow the property to be moved on quickly.

View Our latest Spanish Distressed Property List

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Tags: Distressed Property In Spain, Spanish Repossessed Property
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Low Rate Spanish Mortgages

Friday, November 13th, 2009

This week further to my comments on Low Rate Spanish Mortgages and Dominion Credit, I received a correspondence from a client who has had experience of dealing with them. It would appear my concerns about their Spanish Lending facilities have some validity and there remain many unanswered questions about these two companies.

The comments from Clive Ballard are posted below.

As you say, Dominion Credit and Finance website is new, The name was only registered Jan/Feb 2009. Low Rate Spanish Mortgages were advertising the Yen mortgages in Oct 2008. The DC&F website, like the LRSM website is not very professional for the nature of what it is supposed to sell, and the office in Singapore is not an office but only a phone answering service. Like yourself I could not find any references to Henry Braithwaite in the banking world. I phoned/e-mailed him on a number of occasions in March 2009 requesting information on agents, other than LRSM for these mortgages.
I got no responce to the messages left.
Since DC&F were not contactable, and had no website until Jan 2009, I wonder how LRSM were able to offer their mortgages in Oct 2008, and purchased the domain name in May 2008.

Low Rate Spanish Mortgages charge a non refundable, 500 € to apply for a Yen mortgage.
I applied for a mortgage from them in Jan 2009, when there office was in Valencier. Approximatly 6 weeks later when I chased the mortgage, they had apparently moved to Bilbao, though were working through a UK phone answering service. When they rang back, I was told the morgage was not granted, due to the financial situation, but if I liked to apply again in 3 months (and pay another 500€) the situation might have changed.
It seems to me that the only ones making money out of this, are “Low Rate Spanish Mortgages”, a 1/2 man run business who as well as running lotteries, also run a dating site under their other company name of Marverose S.L
They also have interests in an Estate Agents (wherepropertysells.com), though I think this may now, have closed.
N.B. The original UK company named Dominion Credit and Finance went bust in the 1990′ies.

I was also somewhat surprised when reading a web based article from the Guardian newspaper on GMAC fines in UK where the Guardian was doing plenty of back patting on how they raised the issue of GMAC unfairly treating clients in arrears to see a sponsored link at bottom of article from Low Rate Spanish Mortgages.

I have written to the Guardian asking how on one hand they can write an article criticising a bank for repossessing properties that are in arrears and at same time by default appear to  promote a company whose practices should cause concern.

I have as yet had no response. Perhaps dubious lending practices are only the Guardians concern if they are not earning any money out of it.

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Posted in Spanish Mortgages, Spanish Property | 1 Comment »

Need A Hacienda San Cayetano Development Mortgage?

Monday, October 19th, 2009

Clients completing on the Hacienda San Cayetano Development in Costa Calida, Murcia are now being contacted with completion dates.

The development was not funded by a bank so no developer’s mortgage is available which means clients requiring mortgages will need to shop around for their financial needs and arrange independent loans.

If necessary to allow this to happen clients may need to delay anticipated completion and negotiate with the developer for a little more time.

It is hoped the developer will be reasonable in allowing this extra given the complete change in mortgage availability in comparison to when most clients made a decision to buy.

For information on what lending facilities could be obtained and information on how to try to get an extension on completion date contact IMS now.

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Tags: Hacienda San Cayetano, Raising Finance in Spain, Spanish Mortgages
Posted in Spanish Banks, Spanish Mortgages, Spanish Property | No Comments »

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