Villapac gone into liquidation

extra costs THEY DONT TELL YOU ABOUT

WE DECLINED THE DEVELOPERS MORTGAGE AND FOR THIS HAVE BEEN BILLED  900 EURO CANCELATION CHARGE FOR SOMETHING WE DIDNT WANT OR ASK FOR

 MORTGAGE COMPANY WE ALSO HAVE TO PAY 1% FOR THEIR  SOLICITOR   

NOTARY FEE   1%

TITLE DEEDS OF MORTGAGE 4.602 00 EURO     T ITLE DEEDS OF SALE 3.844.00   DEPOSIT TO COMMUNITY OWNERS 300 EURO     TOTAL 

THERE IS ALSO THE PLUSVALIA  TAX AT THIS MOMENT NOBODY KNOWS HOW MUCH IT WILL BE  

ITS  FOR THE INCREASE IN VALUE OF YOUR PROPERTY  BIT OF A JOKE AS OUR VALUATION IN JANUARY WAS

THE SAME PRICE WE PAID 3 YEARS AGO

OUT SOLICITOR FEE 1.500 EURO

We   ARE    LOOKING AT ABOUT 15.000_ TO 16.000 EURO ON SIGNING

The Developers mortage I think pays most of the costs if you use them but there is normally conditions attached with the loan.Regarding the 900€ for the cancelled mortage on our contract it states.

Mortgage:

The developers have applied for a mortgage loan for approximate 70% of the property price. The following possibilities being available to you in this respect:

1.- You may decide not to assume the mortgage from the very outset. In this event, all those charges in connection with the mortgage redemption shall be paid for by the developers.

2.- You may decide to assume the mortgage from the very outset and if on completion the subrogation is not carried out by causes attributable to the purchaser or the purchaser does not obtain the agreement of the Financial Entity, all those mortgage redemption charges shall be paid for by the purchaser.

The mortgage loan details will be provided by the developer in the near future.

The extra costs certainly add up on the final amount needed to complete.

Hi Babe,

We bought an off plan resale on phase 3 in November 2006 with the developers mortgage in place, which we declined. We had to pay the 900 euros for the mortgage which was later reimbused to us from the Banco Halifax our mortgage provider. As far as I know this happens in all cases if you do not take out the developers mortgage.

Plusvalia tax for us was 1.200,00 euros The initial start up fees are expensive around 14% of the value of your property, which is a bit painfull like going to dentist, but your smile will return!!

Enjoy your new home in the sun,

Michael.

Hi Martin,

If you look at the General Spain Forums (Mortages) you'll find out what the difference is here's one example I found.

 the developer should have paid Notary  fees and the mortgage  tax. The downside is that developer mortgages are less flexible in what you can and cant do - such as interest only, overpayment etc - basically you are subrogating (transferring) the developers terms so the question is whether it fits your requirements.

Hope this helps

Dave.

Hi Martin,

The Mortgage arrangement fee with the Banco Halifax was 1200 euros so it cost me more cash! This was the best option for me giving me greater flexibilty with my finances. The benifits being up to 15 years intrest only, option to make capital payments, which I have used when the exchange rate was more favourable and no early redemption fees. I also do all my banking with Halifax online account and have had no problems,

Regards,

Michael.

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