Moving to Spain

Hi

Myself and my partner are planning to move to Spain in May 2015 after early retirement.  We have researched the internet in relation to properties, solicitors and areas etc.  We are visiting Spain in September splitting our time between the north and then the south to get a feel for the areas.  We are not in a position to buy in September as our funds are tied up until April 2015.  Would we still be able to make a purchase with a small deposit?  We would also like some recommendation on a bank account in Spain, which we intend to open in September.  We feel that we should be doing more to assist us in our move, can anyone give some good advice.  We currently own a property in the UK and are planning on renting this out.

Thanks

Sharon

You can open a non-resident bank account anywhere. Just apply for an NIE (foreigners ID number which will also be your tax number). However, you should open it with a branch near where you are going to live as some branches tell you to go to your holding branch to do things like update addresses and so on.

Getting a mortgage is Spain is not that easy nowadays. Some banks will only grant them if you buy one of the properties they have on their books (usually a repossessed one). The "small deposit" may also be a problem . I know we had one couple move in near us and the maximum the bank would give was 70% of the value and they had to negotiate that up from 60%. I think, if it were a bank repossession, they would go higher but only to 80% so you would be looking for a minimum of a 20% deposit. Remember the fees and taxes on the property as well which can add 7 to 10% of the cost depending on the region you are buying in.

However, there are loads and loads of bargains around with property prices very low compared with pre 2008. Again, depending on the region, these prices can be less than 50% of the original value especially on the Costas.

Best of luck.

Thanks for your reply really helpful.  In relation to the small deposit, I should have said can we put down a small deposit to hold a property.  In relation to a mortgage we would only be asking for a small mortgage of around £20,000-£30,000.

Sharon

Why be in such a rush to buy? Take your time – get over here and rent for 12 months and see where you really want to be – only then think about buying. Be very careful when considering a bank repossession they are rarely what they appear to be and many will  come with ‘a story’ that you only find out after you move in. Beware of buying in a small community as the occupants will almost certainly be related. If a relative’s home has been repossessed you may not be well received.

Remember, the way of life here isn’t for everyone and once you have bought a place you will not resell for quite a long time under the present conditions. On the other hand you may love the life from day one so take your time and look around different areas – the difference a few km can make is amazing.

Learn Spanish – or at least some conversational Spanish......... you will be surprised at the difference it will make if you can speak and understand a little. Don’t be in a hurry to part with your hard-earned as there will still be loads of ‘bargains’ to be had for quite some time yet.

Chat to Brits who have been here a while, a local pub won’t be far away and they will soon teach you the ‘ways’ and most are only too pleased to help.

Good luck and enjoy yourselves

This agent looks like they can sell you a property with a 3k deposit http://www.spanish-property.eu/Condado-de-Alhama_110-Percent-Deals.shtml

Our estate agent requires 3 k deposit on a property, deducted from their fees on completion.

if the buyer pulls out, the seller does not get any of this, as it is between the buyer and estate agent to show they are serious.

norajones - are you aware that you have to declare your UK rental in Spain, as well as declaring it on your assets declaration ?

camposol --- I think NoraJones means she is looking for a small deposit to put down on a  the purchase of the property, not just to secure the property .me thinks

Hi Camposol

Sorry I do mean a small deposit to secure the sale of a property and then a small mortgage if possible.

"Muchas Gracias" to all.

Nora

I agree that it is a good idea to rent for a while first, so that you can be sure you like your chosen area (and I say that even though I have properties to sell...). However, there are drawbacks to renting - such as spending money that could have gone towards your purchase and being tied into a rental contract when you perhaps find the house you want to buy. You also often can't make a rental feel like home. 

But on balance, I'd still advise renting for a few months at least and casting your net around a wide radius.

You need to also think whether you want a flat, a house, to be on an urbanisation, in a village, in a town, in a city, on the coast, inland etc... There are a lot of things to think about. And if you don't think about them now, you could make mistakes and waste your time and others' time.

And it is also an excellent idea to get working on your Spanish immediately. Before we moved out to Spain (and both of us had already lived there in the past and were pretty good at it), we engaged a private tutor to come to our house every week for an hour and got him to go through vocabulary related to renting, purchasing etc.

Also, if you are renting out your UK house, there are quite a few laws and regulations you need to know about. Off the top of my head:

1. Ensure you set up a valid tenancy - we usually use 6-month assured shorthold tenancies (which then run on if everyone's happy).

2. Ensure you put the tenants' deposit in a proper scheme, like the Deposit Protection Service. If you don't do this within 16 days of the start date of the tenancy, the tenants can at any point for 6 years I believe, take you to court and sue you for up to 3 times the monthly rent (even if they were tenants from hell and ended up owing you money, damaging your house etc.).

3. The house has to have a valid gas safety certificate, and it is also advisable to have an electrical safety certificate. If either of these don't come up to scratch when you have them checked, you'll have to pay for the works to put them right. This is more likely with the electrics than the gas, which we usually find straightforward.

4. You'll have to let your mortgage company know and find out if they'll allow you to rent it out. I think they usually up the interest rate then (I've never done this, just read about it).

What I would do, is join the Guild of Residential Landlords, and speak to 'Adrian' there. It costs about £80 a year and he has all the forms for you to download - application forms for tenants, tenancy agreements and so on (and he's constantly updating them so you always have the best possible version) and will also give you a checklist of what you need to do if you ask him which would be a lot more comprehensive that what I've just written.

So you should be busy sorting things out the UK end as well as thinking about the new life in Spain...

All the best.

Hi sharon

Can give you lots of advice the best at this early stage is do not buy until you have decided upon an area to settle down in. We came over jan 2010 and based ourselves in los alcazares, murcia for the next 7 months travelled daily north and south sometimes overnight scouting the different towns, villages inland and on the coast. Finally settled down LA and love it. Do not rush into things, rent, look and then look again.

Advice, do not buy off plan as we originally did, 20 km's inland. Had to fight to get money back when project collapsed. Nightmare period, PErsonally, we prefer coastal location, cooler, nice prom walks, facilities etc. But do very much respect other peoples requirements ie. Inland, more spanish life stle.  

Anyway key point is take your time and also regarding a suitable bank useful to have one local/regional bank as many localised ie one were in caja murcia and very helpful staff as well.

Happy hunting paul and chris

Very sound advice Paul - do not part with ANY money on promises, deposits, or off-plan. Don't be pushed by agents with the usual 'I have got 3 others interested so you will have to be quick' routine. I can't concur with Eggs in that rental money is wasted as those who bought a few years ago have lost up to 50% of the price they paid - a lot more than a couple of years rent would be. Besides you only need to give a months notice to leave a rented home and this gives you the flexibility to move around - buy and you are stuck!

Come over, make it a pleasure and enjoy your search and don't worry too much about rules and regulations at this stage after all it is Spain. Just get your NIE and a certified copy of your pasport to carry with you and you will be OK. 

There are a lot of experienced members on this forum who will be delighted to help you but as Paul points out, first decide if you want to be in Campo, Coast or Urbanisation and take it from there - what suits others may not suit you. So many Brits come here with a Spanish dream of a casa and an olive plantation and after a couple of years of backbreaking work for a very low return the dream is soon shattered.

I too bank with Caja Murcia - and have done for many years - all good news and with a website in English if you don't 'do' Spanish. When it comes to dealing with Estate, Legal, Financial 'advisors' keep your purse firmly closed and as you already know the key-word 'No'........ you will be OK

It's true that those who bought at the peak and sold at a loss would have been better off renting, but of course no-one saw the crash coming. The situation is very different now, with property prices very low. So it is quite possible that you could lose out now by renting first, especially if you rented for a year or more. Also, I don't know how standard Spanish tenancy agreements are done, but I know that when we rented in Spain we had to sign for 6 months and could not give one month's notice until we'd reached the end of the 5th month. 

Also, I've just had deja vu of sexist office meetings from the past. The woman (me) suggests something. I quote from what I said just a few posts down: You need to also think whether you want a flat, a house, to be on an urbanisation, in a village, in a town, in a city, on the coast, inland etc... There are a lot of things to think about. And if you don't think about them now, you could make mistakes and waste your time and others' time.

A man then says something similar and another man says 'What a good idea!'

What ever you do don't buy a property it is much better if you rent first I have had a place in Spain for seven years and have lost count of the people that have bought a place and put it back up for sale all within six months I not sure if these people have made a mistake buying in the wrong area or decided Spain is not for then so I think it would be a safer bet if you rent first and try different areas and then buy a property if everything goes well for you.

                                      WARNING DO NOT BUY A PLACE OFF PLAN YOU HAVE BEEN WARNED.

This message was last edited by windtalker on 23/07/2014.