Help for Completion Please

I am due to complete on my purchase on Thursday & the Bank has provided me with the amount that I need to complete.

The figure is way off what I expected so can anyone give me an idea of what I should be paying in order to complete.

The purchase price is 179,000

I have paid 20% Deposit + IVA (on the 20% @ a rate of 7%)

My mortgage is 143,200

Therefore I calculated that I need to pay a further 10,024 IVA. I was also aware of a 1.5% Opening Fee for the mortgage (2148 Euros)

The problem lies with the additional charges which have been quoted as:

Handling Expenses (notary, registry, etc)     7038.08

Bank Expenses 800.00 (Have no idea on this one!!)

It is really the Handling expenses that puzzle me as these are 3400 Euros more than we were led to expect.

Any help gratefully received - Thanks

Noreen

Sorry Noreen, I can't help you on this one but will watch the replies with interest.

That said, I asked our solicitor for a breakdown of all costs so that we could have sufficient funds in sunny Spain, and received the following: "I have just give them (mortgage provider) a call to ask for the fund provision needed for registering the mortgage deed and the purchase deed." I was under the impression the only fee payable to the lender was the 1% opening fee!!

Mark

Best bet is just to ask the bank for a complete breakdown of the charges. Seems high to me, but others (Smiley, Rixxy etc) will have a better idea. I think there is a registration fee for the mortgage as well as the property itself, plus the notary fee. Depending on the contract (assuming here you bought off-plan?) you may be liable for the Plus Valia tax, which usually (at least with re-sales) is for the sellers account. But normally that's not a huge amount. And if the figure includes legal representation, that would normally be 1% of the total sale price, so it soon mounts up.

The bank charges may well be the fee for issuing banker's drafts (for the extra IVA etc.) Have a look at the threads on bank charges elsewhere - it's scandalous really.

Thanks Roberto

I have asked the bank for a breakdown but as time is of the essence, I thought I would look to the experts on here as well (ammunition!!).

The Solicitors fees are not included as I have already paid these.

Noreen

I did see something on my contract about paying the cancellation fees of the builders mortgage if it was not subrogated. Maria posted on here that it is not a legal charge and should be refuted which I did. I think that is also a 1% charge too.

Mark

Thanks Mark

I know in our contract that there is no fee for not taking on the builders mortgage & I forget to mention in my response to Roberto that I have already paid the solicitors fees so it all seems very high to me.

Fingers crossed that yours all gets sorted - at least you seem to be moving in the right direction again.

Noreen

Thanks Roberto

I don't think water is strong enough any more - a bottle of vodka more like!!!

We are not in Spain for our completion because my sister is a teacher & we knew that we would restricted to school holidays so we gave POA to the solicitor.

Noreen

Hi Noreen - as a rough rule of thumb allow 13% of the purchase price for completion costs, including your lawyers fee, bank opening commission (seems high - usually 1%, may be able to negotiate that, have you used a broker if not who arranged it for you?), 7% iva or purchase tax the various bits and peices ie the mortgage deed registration. We usually quote 15% to ensure everyhting is covered, but it does seem a little high

Ensure you query it and get a full breakdown before you authorize your lawyer to proceed. With regards to the extortionate bank charges, again negotiate with your bank as they are charging huge amounts for the bankers drafts

I personally dont get involved in that part of it, although we do oversee it to ensure its all ok as its the lawyers job to provide the breakdown - its what you are paying them for!

Good luck

Rixxy

Thanks for taking the time to reply.

I have queried with teh bank & solicitor & I am waiting for a response.

We used a broker for the mortgage & paid 348 Euros "finders fee". I haven't challenged the 1.5% opening fee but I think I will now - If I don't try it won't happen!

Thanks again

Noreen

Thanks for the various replies on this one.

Caja Murcia have been brilliant & have switched us over to the builders mortgage so we will save a considerable amount on costs. This includes the 800 Euros for Bank drafts.

Hopefully completion will go ahead tomorrow & we can get in to sort out the apartment next week when we are over in Spain.

Thanks again

Noreen

Glad you got it sorted Noreen. I have been reading your other thread on the Thalassa forum, and, gulp, here we go again. Stamp duty on the mortgage as well as the purchase? How on earth does that work? Yet another person who hasn't had this explained. Our mortgage calculator told us to expect 13% in fees for purchasing, I see someone on the other thread has said 14.5%. Nooooooooooooooo!

Mark

Mark

I am going out straight from work tonight so will not be going home till the last train leaves London (hopefully I will be on it!!) but I can PM you a breakdown of the figures provided to me, tomorrow eveing.

You may then be able to calculate your figures to somewhere close.

Noreen

Glad you got sorted Noreen - its a custom in Spain to barter for everything!

Mark - I know of others who have paid 15%, it depends on your circumstances, how much you are borrowing ie percentage LTV and which bank you have used also if any sudden last additions such as life cover you may get lumbered with

Dont do anything until you have a full breakdown and you wont know this until a day before notary (if you are lucky!)

".....so we will save a considerable amount on costs. This includes the 800 Euros"

Drinks are on Noreen, everyone! Hope all goes smoothly for you. Hopefully it will be champagne all round on Friday.

Roberto

Absolutely I am celebrating! I am 4000 Euros better off tonight than I was last night & I am still fighting for another 871 Euros in respect of teh life insurance that the bank has already taken out of my account (Even though I have told them not too!!!)

The excellent broker from Mortgage4Spain is on the case for that one & is adamant that this was not a condition f the mortgage so we shouldn't pay it.

All I need now is for it all to happen tomorrow, pick up the keys Tuesday & relax or........... run around like a woman possessed to get it cleaned & fitted out before coming home again on Friday.

Thanks again to everyone for their help on this, I don't know if I would have had the nerve to push as much as I have without all the sound advice I have received.

Update tomorrow!!!

Noreen

Hi Noreen

What you should do Is relax but no doubt you'll be like everyone else wandering around Carrefour with a trolley load of must have items.

It's amazing how much you need to kit out an empty house. 

I bought a resale, the previous owner emigrated to Australia and took everything except TV's and 2 garden chairs. 

I'd put garden chairs on the top of a list of things to buy, followed by glasses.  You can then sit and chill with your favourite tipple whilst the furniture packs are installed. 

Hope you've booked a large car to get all the goodies in.

Semijubilada

Fortunately, the apartment is furnished & it is all already there (we saw it in august on inspection visit).

We have bought some bits & pieces here & then the rest will be Carrefour or Eroski.

We have booked a Renault Scenic because that is what my sister drives here & she knows exactly how to remove all the back seats so.....lets hope the plastic is particularly flexible next week.

More good news this morning though - the bank has now agreed that we don't have to take the life insurance & we have another 871 Euros in bank account.

Last piece of the jigsaw is today & then I guess the only battle left is to get any snagging sorted out - I know it will be a battle because everything else to do with the purchase has been!!!!

Noreen

Brilliant news Noreen, lets hope others realize they may be able to negotiate costs like that and save themself thousands.

Helps to have a few euros for the mortgage and to buy things for the house!

Rixxy

Thanks - at last something is going our way!!!

I would just say that I don't think I would have had the nerve to challenge it as much as I did without people like yourself & Roberto giving your opinions & advice, so thank you.

Our challenge has resulted in charges amounting to 4700 Euros disappearing, so it is well worth at least asking the question.

As you say it is a level of comfort to have that in the bank just in case a transfer is late or something unexpected crops up.

All I need now is the confirmation that completion has happened.

Noreen