Spanish Property

#1
Any Spanish property Gurus out there that I can nick some advice off?

A friend of mine bought two apartments off plan two years ago and the completion date is imminent now.

His circumstances have changed and needs to pull as much money out of them as possible. Whilst being a bit of a lovemachine over here, I haven't a clue about Spanish property, law and conveyancing etc.

I am meeting him on Friday, and have been given first refusal.

Apartments are on a golf course near Murcia and can have them for 66% of market value, all seems a little too good to be true and am wary of getting my nob nibbled by a dirty dago.

Help, ideas, sarcy comments?
 
#3
Sri Lankan Michael??
 
#4
Have you actually seen the apartments up? They are probably still building sites and the bloke is trying to screw you for a few quid and run
 
#5
MDN

I have a property which I too bought off plan and it is now ready to complete. If you want to take this on you best get a spanish solicitor as we did, not too expensive but worth the cost. Basically, you need to get a NIE number (Spanish social security) before you can own any property. This must be collected in person so you (and any partner(s) :headbang: ) need to get the applications in and then arrange for a visit to the nearest official establishment. This can be a nightmare as even with an appointment the queue is full of 'illegals' trying to get residency status too. Our solicitor apointed us in the direction of a 'man in the know' and for a few euros we got to the front of the line - money well spent

Also check check check if there are any other planning permissions going on round about your property. The Spanish can take free ( unbuilt yet still owned by ) land and pass it on to others to build on. There are also a number of other fees which need to be paid up front such as bank set up fees, transaction fees, nie fee as well solicitors fees. We reckon it took up about 6% of the overall cost of the property

All said, a good place to buy, fairly close to La Manga, loads of golf courses and air connections from UK are good. So far we have added 40% to our initial outlay in value and the builders are completing this week
 
#7
No, the bloke is my Brother in law and needs the cash for other reasons.

They aren't finished yet, they are part of the third phase and will be complete by April 20th, He flies over to do a snagging list and sort mortgage out next week, so ideally wants something in place by then.
 
#10
minister_doh_nut said:
No, the bloke is my Brother in law and needs the cash for other reasons.

They aren't finished yet, they are part of the third phase and will be complete by April 20th, He flies over to do a snagging list and sort mortgage out next week, so ideally wants something in place by then.
You'd better hope that the builders aren't a lovable bunch of Geordie/Brummie/Cockney/Scouse misfits, with hilarious personal problems, who've recently come over to Spain after a successful stint in Der Fatherland.

If they are, your house is going to fall down the first time you switch on a light.
 
#11
convoy_cock said:
[You'd better hope that the builders aren't a lovable bunch of Geordie/Brummie/Cockney/Scouse misfits, with hilarious personal problems, who've recently come over to Spain after a successful stint in Der Fatherland.
Mmm one of them, the spark was from Dudley and is a member of the Bromwich and district aqualung society, and the goerdie constantly walks round with his hands down his outsized underpants saying 'Yowah Walls not plumb'

Thankfully the Cockney with the pink in his hair died in phase 1.

Ali Fraser is the developer and a chap called Dennis is foreman, his bint is Dagmar, but has hairy pits.
 
#12
Spanish Law property law really isn't my thing (English property law is bad enough). if you are looking to cover your interests though I would also make an English contract with your brother in law thus meaning you can rely on using our courts here if he doesn't sign the property over to you.

I will gladly write one up for you a small fee.

The party of the first part shall be known as the party of the first part......
 
#13
jest265 said:
Spanish Law property law really isn't my thing (English property law is bad enough). if you are looking to cover your interests though I would also make an English contract with your brother in law thus meaning you can rely on using our courts here if he doesn't sign the property over to you.

I will gladly write one up for you a small fee.

The party of the first part shall be known as the party of the first part......
I can do one for free.

"Oi, you! Yeah - you over there. Right, you better give my mate here that pile of bricks in mint condition or you're getting a shovel in the knackers, alright? Now sign here or you'll be trying to shit out a bayonet for the next week. Signature ___________ "
 
#14
jest265 said:
Spanish Law property law really isn't my thing
Then shut up you hog

Deputy, thats the one mate, will scan in the bumf later and PM it over to you.

Also attractivley I live 3 miles from Blackpool Airport who fly directly to Murcia. Am considering leasing for holidays and drawning on the equity as opposed to floggin them on
 
#15
Thanks for all PMs and advice etc.

Deputy, my mate has an appartment in the same complex he also complained of powercuts and the finish of final product (bare wires, not light fittings etc)

Didn't stop him playing golf though.
 
#16
minister_doh_nut said:
Any Spanish property Gurus out there that I can nick some advice off?

A friend of mine bought two apartments off plan two years ago and the completion date is imminent now.

His circumstances have changed and needs to pull as much money out of them as possible. Whilst being a bit of a lovemachine over here, I haven't a clue about Spanish property, law and conveyancing etc.

I am meeting him on Friday, and have been given first refusal.

Apartments are on a golf course near Murcia and can have them for 66% of market value, all seems a little too good to be true and am wary of getting my nob nibbled by a dirty dago.

Help, ideas, sarcy comments?
There is a part of the costas in Spain. I'm not sure if it is Valencia, Murcia or Andalucia but if you build on land and the local goverment deem it useful can bulldoze your house down to build a road and you have to pay for the demolition of your house! You get no compensation or nothing.

Also this is worth looking at:

http://www.telegraph.co.uk/global/main.jhtml?xml=/global/2006/11/21/wspain21.xml

Better places in Spain to buy anyway, Galicia is always good, unspoilt,
good seafood and buenas chicas!
 
#17
minister_doh_nut said:
Thanks for all PMs and advice etc.

Deputy, my mate has an appartment in the same complex he also complained of powercuts and the finish of final product (bare wires, not light fittings etc)

Didn't stop him playing golf though.

You are just trying to move closer to the CO, aren't you :)
 
#18
First, it's absolutely essential you get a good Spanish solicitor.

2. Check out the area. Does the property have a lovely view, only to be obscured next year when they build another girt big one 5 feet from your balcony. What other development is going on in the area? How far is it from bars, restaurants, shops, etc?

3. Is the area free from the threat of LRAU/LUV? This is where developers come along and say, 'Right we're going to develop the area and you've got to sell us half(?) your land for next to nothing. Then you're going to have to pay megabucks to help us put in roads, street lighting' and so on. As it's an apartment this probably won't apply and the EU is trying to put a stop to the practice. But it should be checked out.

4. Beware of the 'black money' scam. Here you buy the property for, say, 100K. You and the seller [through your solicitors] agree to say that you paid, say, 70K for it. This way you only pay the 7% property tax on 70K not 100K and the seller only pays capital gains on the profit in the 70K, not the 100K. [He gets the rest by going to your bank and the bank manager counting out 30K in notes for him to 'smuggle home' somehow.

The problem 'MAY' come if you ever sell and the govt. start to crack down on it. Your 'declared value' will be 70K but if you sell for, say 150K (ever the optimist'), you'll end up paying capital gains on 80K not the true gain you've made of just 50K.

5. Property prices in Spain must be about at the peak. There's massive overdevelopment and loads of Germans have sold up because their govt. has introduced a new tax for people owning property abroad. [they're the 2nd biggest buyers after the Brits] My guess is that there's going to be a price crash before too long.

6. Check out what implications there are for the development in terms of things like water and electricity supply. Because of the incredible overdevelopment there are bound to be implications in the future - they're starting to surface now: reservoirs drying up, etc.

Sorry, but you did ask!? :yawnstretch:

There's loads more but this should keep you occupied for a while! At the end of the day it's a HUGE decision and involves a lot of money, so make sure you do your homework. And GOOD LUCK! :thumright:
 
#19
Murcia is chock full of illegal builds. Loads of people have bought and paid for their properties, buying from large companies using lawyers and notaries, all above board. Only to find the electric and water board won't hook them up as whatever the local government says, central government says no.

Spain has massively overbuilt, and even in the established tourist areas it's a price war to get anything sold on or rented out. During the time between the off-plans being sold and construction beginning labour and material prices have nearly doubled meaning many blocks need serious structural work before they're even finished.

A good site for info and advice is Spanish Property Insight. I know the bloke who runs it and he's straight - believe me EVERYBODY else offering advice on this subject is a shark.

I've done 12 years buying, reforming and selling property in Spain, and my brother in law is a Spanish lawyer. Probably the sensible solution is to chuck both our brothers in law into a pit and let the bastards fight it out. Mine has a well dodgy hip but he's on his home turf so I know where my money's going. Yours deserves a bit of a slap for buying off-plan in Murcia in the first place.

PM or email me the name of the development and any other info you have and I'll be happy to look into it. You are entering a fcuking minefield.
 
#20
Sisyphus said:
The problem 'MAY' come if you ever sell and the govt. start to crack down on it. Your 'declared value' will be 70K but if you sell for, say 150K (ever the optimist'), you'll end up paying capital gains on 80K not the true gain you've made of just 50K.
They are already cracking down on it. If you declare less than the catastral value x local co-efficient (in my area x1.8) you will be investigated and both buyer and seller can be jailed.

Not that it matters - nobody's selling golf apartments in Murcia without using kidnap and torture and won't be for the foreseeable future, so capital gains would be the least of his worries.
 

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