Spanish property mortgages

[traxx]

Anyone know roughly what is available for picking up a holiday home?

Just wondering if you can take out long-term fixed rate deals and what LTV banks generally look for?

[The jiffle king]

I can ask at work (I live in Spain) but are you really looking to buy right now in Spain? 24% unemployment, drastic cuts, property not selling and devaluating to name but a few things.
You might pick up a bargain, but getting rid might be an issue.
(In terms of Bargains, a friend just knocked 37% off asking price just south of Barcelona, but on the costa´s where Brits usually go to, it´s very tough to sell. If you want an income for some time and can pick one up cheaply, then great.

[Vixpy1]

A friend of mine runs an estate agency in Sotogrande, The spanish property market is completely bksed, especially high end villa's. Nothing is selling.

However there are bargins to be had, just have your eyes open.

I can pass his details along if wish.

[traxx]

Vixpy1 said:

A friend of mine runs an estate agency in Sotogrande, The spanish property market is completely bksed, especially high end villa's. Nothing is selling.

However there are bargins to be had, just have your eyes open.

I can pass his details along if wish.

Thanks for the offer, but I'm really interested in picking up a distressed sale place in Ibiza

[2 5HAN]

You really need to think carefully buying anything in Spain at the moment.
If you are cash rich and buying as a long term investment or family retreat / small time rental op then that's all well and good ie you are going into it eyes wide open.
To buy on a mortgage other than to take advantage of low interest rates is a risky bet if you ask me.
I think we are yet to see the effects of the Spanish lenders calling in any of their loans as most banks in Spain appear to be happier to let the owners keep the property and pay something then be lumbered with a heap of bad toxic debt in the form of Overvalued Villa's and apartments in unsold developments.

[marky1]

Vixpy1 said:

A friend of mine runs an estate agency in Sotogrande, The spanish property market is completely bksed, especially high end villa's. Nothing is selling.

However there are bargins to be had, just have your eyes open.

I can pass his details along if wish.

Would you mind passing them on to me? I live in Gibraltar but been looking in Sotogrande, sick of the unrealistic vendors though.....

[marky1]

traxx said:

Anyone know roughly what is available for picking up a holiday home?

Just wondering if you can take out long-term fixed rate deals and what LTV banks generally look for?

Doug probably best to try some of the UK banks. Lloyds do something for Spanish purchasers and I'd imagine Santander will too. Maybe 60% LTV. Could also try Jyske Bank out of Gibraltar, they lend in Spain although the way they work it ends up being circ 50% LTV! As far as I know Barclays have stopped lending in Spain.

Edited by marky1 on Tuesday 10th April 20:03

[traxx]

marky1 said:

traxx said:

Anyone know roughly what is available for picking up a holiday home?

Just wondering if you can take out long-term fixed rate deals and what LTV banks generally look for?

Doug probably best to try some of the UK banks. Lloyds do something for Spanish purchasers and I'd imagine Santander will too. Maybe 60% LTV. Could also try Jyske Bank out of Gibraltar, they lend in Spain although the way they work it ends up being circ 50% LTV! As far as I know Barclays have stopped lending in Spain.

Edited by marky1 on Tuesday 10th April 20:03

I did look at UK banks but they lend at Euro base plus where as I want long dated fixed rate
I also think that in the event of Spain having to leave the euro you are in a clearer legal position having a Spanish debt with a Spanish bank

[scotal]

I know there is a 4 year fixed avialable, up to 70% LTV. Rates aren't much kop though, and the tie-ins are st.

[marky1]

Vixpy1 said:

A friend of mine runs an estate agency in Sotogrande, The spanish property market is completely bksed, especially high end villa's. Nothing is selling.

However there are bargins to be had, just have your eyes open.

I can pass his details along if wish.

Got your email, many thanks.

[The jiffle king]

Well I did ask my friend. He took over the mortgage from the developer at a cracking rate (2.25%) which might be something you should ask the owner about. You really need 70% LTV max he said and La caxia, Santandser, Banco popular were good for him. If you look on some of the banks web sites, they have properties for sale as well that they have repossessed. You can get long term fixed, but he thinks they are in the 4-5% region

[princeperch]

some of these flats really are looking cheap now

http://www.polarisworld.info/property/RM219.php

2 bedders in this development for 50k too.

[BoRED S2upid]

How cheap are we talking? £50k for a new build appartment but what about cheap cheap?

[jogon]

Just hold fire. I hear France is next on the property value downgrade with some parts of Normandy believed to be upto 47% overvalued, according to the Standard yesterday evening.

Ibiza, unfortunately, is one place that has proved to be unaffected.

[marky1]

princeperch said:

some of these flats really are looking cheap now

http://www.polarisworld.info/property/RM219.php

2 bedders in this development for 50k too.

They aren't cheap if the developer is bust, no one that bought is paying service charges and the place day by day is falling apart. Some of these place are realistically worth nothing because of future costs to you as an owner.

[groak]

I've heard it said that buying property from Polaris is akin to paying a we to catch herpes.

[icetea]

marky1 said:

They aren't cheap if the developer is bust, no one that bought is paying service charges and the place day by day is falling apart. Some of these place are realistically worth nothing because of future costs to you as an owner.

This is exactly right... a lot of these spanish resorts are like ghost towns. So the shops and bars nearby start closing also as they have no customers and the place becomes impossible to rent out etc.

Portugal might be a better bet - I bought a few apartments on a 5* golf resort in Vilamoura for 182-185k euros each. Way more than you'd pay in spain... but they've actually sold every 2 bedroom in the place and there are only a small number of 1 bedrooms left. The rental returns are solid and with these apartments being sold for 300+ a few years back I'm confident it'll be a reasonable long term bet. Plus it gives me somewhere to stick family in if I don't want them breathing down my neck in my own villa

[Sarnie]

icetea said:

This is exactly right... a lot of these spanish resorts are like ghost towns. So the shops and bars nearby start closing also as they have no customers and the place becomes impossible to rent out etc.

Portugal might be a better bet - I bought a few apartments on a 5* golf resort in Vilamoura for 182-185k euros each. Way more than you'd pay in spain... but they've actually sold every 2 bedroom in the place and there are only a small number of 1 bedrooms left. The rental returns are solid and with these apartments being sold for 300+ a few years back I'm confident it'll be a reasonable long term bet. Plus it gives me somewhere to stick family in if I don't want them breathing down my neck in my own villa

Where abouts in Vilamoura? I go about twice a year

[a311]

My dad managed to sell his property in Spain (Costa Blanca)about 12 months ago and broke even after fees having lieved over there for 8 years (he was lucky to break even). He knew/knows allot of expats out there and it's carnage at the moment with allot of people stuck with houses they can't sell or afford to sell. Businesses closing left right and centre and this is in a older/established town i.e. no concerte jungles of 2 bed holiday homes. He lived over there for another 12 months having his choice of huge rental properties at low rent from those looking to sell but can't. He eventually decided to come home and continue to rent abroad for 4-6 months but have the option of trying different locations.

I really wouldn't want to hold property in Spain at them moment you just can't tell where the bottom of the market is at the moment.

[icetea]

Sarnie said:

Where abouts in Vilamoura? I go about twice a year

Vila Sol, in next to the hotel and golf course.