The story continues from where I left of in my last blog
We decided to carry on as we have fallen in love with the property; the vendor had to now get the property measured by an architect to draw up the plans with the correct measurements.
The problem was that on land registry it shows that the size is a lot smaller than the actual measurement, this happened when the vendor had sold some of the land to his father, and paper work was not done correctly and then re-registered at the land registry.
To do this the vendors solicitor is requesting a segregation certificate from the local town hall (to segregate the land from his father and add it to the house) which all should have been done in the first place .
Once this has been done, it can go to the notary to make the segregation and added it to the deed. Then it will go to the cadaster in order to give it an independent cadastral reference to the property. Therefore, in manna culture this could take months.
This was finally completed in May 08, and valuation was done on the property as it stands now and once the property had been renovated. Therefore, everything was ready to rock and roll.
The bank got back to us to say that they was only prepared to offer us a mortgage for X amount which was considerable less than we need as part of the mortgage was to buy property and to do the renovation, the valuation came in a lot less than the asking price and the value of property once it had been renovated came in quiet a bit higher which was good, but made no difference to the bank ( due to the situation with the property market in Spain at that time). One we would need to go back to the vender to see if we could renegotiate a new price based on the valuation, as prices had came down due to the credit crunch, especially the property market that was happening around the world at that time.
Before we made our move with speaking to the vendor the bank Manager phoned me to say that the bank had changed they mind and was not now willing to give as a mortgage, Why?, because the property would not be habitual while the building work was being done, what a load of bull, they knew all this at the start. All that was requested by them, all the plans etc was done so they knew from the start what was involved. They was running scared due to the banking situation around the world, which I would have understood more if they told me this was the reason not to loan us the money, and not come out with some cock and bull story.
story to continue