Buying a holiday home or second property in Spain is something that is on many Britons’ wish list. And who can blame them, really?
Reasonable property prices, mild weather, incredible food and a land steeped in a rich cultural history make it one of Europe’s most popular hotspots.
While it can be tempting to rush into the buying process once you have set your eyes on the beautiful villas in Calpe or modern apartments in Madrid, there are a couple of things you and your clients should be aware of.
Buying property in Spain has a different set of rules and laws to those in the UK, and the following pitfalls should be at the fore of your mind before you settle on purchasing any property there:
Hire a registered lawyer that speaks English and Spanish
We cannot stress how important it is to hire a trustworthy, bilingual lawyer to help you through the buying process. A Spanish lawyer will know the ropes of the industry already and will be able to assist you with communication, contract translation and other legal necessities when buying villas in Calpe.
If you choose not to hire a lawyer, you are almost guaranteed to run into linguistic problems, miss something in the Spanish small print, or get tripped up by a Spanish law that you had no idea existed.
The property isn’t registered correctly
When buying villas in Calpe, you need to make sure that the property that you are looking at has been registered correctly. It’s a common problem in Spain, whereby owners register their property at a certain size, but then fail to notify the relevant channels if any extensions are added.
Make sure that the property you are looking at is correctly registered for its actual size – if it’s a four bedroom property, make sure it isn’t registered as a two bedroom house etc. An incorrectly registered property will incur extra tax when you re-register it with the notary.
Buying developments before they are finished
One of the biggest problems that Britons encounter when buying property in Spain, is when they invest in a development that is yet to be finished. Most villas in Calpe are already completed before being put onto the market, but it is advised that you and your clients avoid investing in estates that are still in the development stage.
Many of these Spanish developments are infamous for remaining incomplete and developers are known to run out of finances. There have been more than a few occasions where buyers have been left with partially finished properties, and it is something you should be wary of.
Tenants have the law on their side
The Spanish law dictates that tenant agreements must be adhered to, even after you have purchased the property. For long-term rentals signed after 1st of January 1995, a tenant’s five year contract must be respected. This means that if the house you have purchased has a long-term tenant agreement, then it is within their rights to keep living there until the contract is up.
Make sure that you are aware of any tenants and agreements that were previously in place on the property. In most cases tenants can be moved along if you agree upon a compensation package that covers the rest of their contract.
While there are plenty of pitfalls when it comes to buying villas in Calpe, the benefits of owning a property here undoubtedly outweigh them. Be aware of the potential problems that come with investing in a property overseas, and if you are interested in investing in Calpe villas – contact us to look at our extensive Spanish property portfolio.