QUESTION NUMBER ONE:
Name: Noel H.
Comment: On the 9th July this year my partner Ms Holmes, part owner of apartment in Vera Spain is being made redundant. This will make it very difficult to pay the mortgage in Spain to the Deauche Bank, we have a Mortgage of €120,000 the property value is €70,000. What are the options for us please, can we ask the bank to re possess? If so can we remain debt free after the re possession? Please advice of all options open to us please?
Thank you
Answer If the equity you have is around 50% of auction value of the property, you can try a negotiation with the Bank. It is neither a one-step process, nor one that Banks will agree on right away but, as being based on minimums established by Law for values to be given to repossessed houses, it has to work at the end. More if the mortgage deed had any abusive clause, like floor clause and you hold a claim for a refund against the Bank.
QUESTION NUMBER TWO:
Name: Wael T.
Comment: What happened with the owners of unfinished properties from martinsa fedasa after they request liquidation .and if they been registered by the court of administration..
Case Law has been establishing and there is now Supreme Court case law affirming important value of Law 57/68 guarantees, especially as refund possibilities of off plan buyers in creditor´s meeting procedures are very low. For this reason, now, more than ever, any of the two actions against financial institutions that we have been developing along these years, can be acted against corresponding banks. It is necessary of course those requisites for the cancellation of the contract have been met and cancellation has been or can still be activated. These are in simple and short words:
A) Delayed building
B) No unattended request for completion by seller
QUESTION NUMBER THREE:
Name: Caroline
Comment: my father has joint ownership of an apartment in Spain with his partner of 19 years. He has had a series of strokes and now needs 24 hour care in a local care home, but his partner is refusing to pay costs and we don't have the money to help. Can we force her to sell the property to use dads half to pay for his care home costs? Thankyou for any help.
Your dad can bring an action to Court for the division of the joint ownership.
This division can be performed (1) out of court, in an amicable way by co-owners through mediators or arbitrators or (2) in-court through judicial action.
Related taxes
a) Stamp Duty: usually 1% of the tax value of the house (depending on the region in which the property is found). b) Plusvalia: local tax on value increase of urban land c) Income tax (for the seller) difference between acquisition and sale price must be calculated to find out on capital gain or loss
If the joint ownership being divided has a mortgage, the authorization of lender is required
http://www.costaluzlawyers.es/blog/problems-with-jointly-owned-property-in-spain/
QUESTION NUMBER FOUR:
Name: Richard A.
Comment: Estimada Maria, We have a UK will and a Spanish will. We understand that now we only need our UK will as we can now specify that we wish for all our properties, goods and chattels in Spain be dealt with under the UK legal inheritance system. Is this correct? We are resident in the UK AND OWN A PROPERTY THERE. We also have two apartments in Spain with €240.000 interest only mortgage with Sabadell Bank. We come out less than 80 days a year.
It is correct, but reason is not the coming of new regulations in August this year, especially as the UK has not signed the Brussels IV agreement, but, reason is that you have UK nationality and have estate assets in the UK. In this last case, your UK National law would forward the governance of your inheritance to country where you have your estate assets, which is not the case.
Only benefit to make a Spanish will will be to make the Spanish probate process easier to your heirs in the future.
QUESTION NUMBER FIVE
Name: Agnes
Comment: Hi, I am about to purchase a property in Nerja and I am thinking of renting it out. Please can you inform me of local laws in renting and taxes?
Thank you in advance
As a property owner who rents his property at lease once a year, through tourism channels in Andalucía, these below are the only current regulations on these:
Only rules for Holiday houses or touristic rental houses in Andalucía are a few articles of a Tourism Regional Law dated 1999. According to the 1999 Law, holiday rental houses are those which offer a lodging service and are offered to the public for a seasonal use or are occupied for touristic reasons once or more times a year.
The rentals are for the whole house and not for rooms.
Rural touristic houses are, by definition of this Law, these same units in the rural area. Just lodging service is provided.
These touristic houses need to have enough furniture and house ware for immediate use.
A decree (still not existing) will regulate minimum requirements. It is supposed to be passed in 2015. A draft which was published in June 2014 does allow owners to offer a bed and breakfast service and single room occupation, but insists on Wi-Fi, air conditioning and heating.
Taxes
Because registration is still not obligatory in Andalucía, tax payments will be under your annual incomes return on “rendimientos del capital inmobiliario” (returns of real estate assets)