BUYING, SELLING OR MORTGAGING A PROPERTY IN SPAIN

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BUYING IN SPAIN

We can assist with the purchase of a re-sale property, newly built property, off-plan property, property in an urban area or in the countryside, regardless of whether the purchaser and/or the vendor are individuals or are companies, and regardless of whether the vendor has an existing mortgage on the property and whether or not you will need to mortgage the property in Spain to finance your purchase.
Our charge will be based on the time spent on the matter and will be charged at the hourly rate of £330 + VAT. The value of the property can also be a factor to consider when providing a fee estimate.

You can contact us with the specific circumstances of your intended transaction and we will provide you with a fee estimate for the work required.

As an example of our fees we will set out below information in the event of the purchase of a re-sale mortgage-free property situated in an urban area in Spain where the vendor is an individual and the purchaser is also an individual; and the purchaser will not be mortgaging the property in Spain to finance the purchase and the property has a value of less than 300,000 Euros.

Assuming the transaction proceeds smoothly, fees can range from £2,310 to £2,640 (+VAT) and disbursements. This is not a fixed estimate but is likely to include the usual property searches, exchange of contracts, arranging completion (including instructing the Notary and reading and requesting any changes to the deed of transfer) and correspondence with you and with the vendors, provided legal problems are not identified (e.g. planning problems, charges, debts etc) and correspondence is kept to a minimum (if you generate a lot of correspondence, or we need to chase you or the vendors or those who need to provide information or documents as part of the searches, the above estimate is likely to be exceeded). If I need to exceed this estimate we will contact you first and request your authority to continue working.

The above fee estimate assumes that this is a standard transaction and that no unforeseen matters arise including for example (but not limited to) a defect in title which requires remedying prior to completion or the preparation of additional documents ancillary to the main transaction; the transaction is concluded in a timely manner and no unforeseen complication arise; and all parties to the transaction are co-operative and there is no unreasonable delay from third parties providing documentation.

On top of the above estimate, if we need to prepare Spanish Powers of Attorney (“PoA”), the fee is £290 + VAT for drafting each PoA with up to 2 signatories. There will be a surcharge of £50 + VAT for each additional signatory of the same PoA. If separate PoAs need to be produced, each additional PoA will be charged at £150 + VAT. Spanish PoAs need to be signed in the presence of a Notary, the above fee includes having them signed in our office, but if the signatories prefer to sign before their local Notary, they will also need to pay the local Notary’s fee for witnessing their signature/s. In addition, each document will need to be legalised with the Apostille; there is a disbursement of £30 payable for the UK Foreign and Commonwealth Office for this. Any correspondence required to obtain any necessary instructions, details or to arrange this will be additional for the above fee.

If the purchasers do not have a Spanish identity number (“NIE”) and you require our assistance with this, our additional fee for obtaining your NIE is, for each NIE, £180+VAT plus a disbursement of approx. £8.50 (Spanish Government fee). Any correspondence required to obtain any necessary instructions, details or to arrange this will be additional for the above fee.

Amongst the disbursements, you can expect to pay Spanish Land Registry fees (depending on the value of the property, but usually approx. £500-£800); Transfer Tax (the rate of this tax will depend on where in Spain is the property, but in most parts of Spain is at least 8% of the value of the property); our/our agents’ fees for payment of Spanish purchase taxes & registration (approx. £500-£700); other minor disbursements such as bank charges, legalisation fees, couriers’ charges, office copy entries, etc. (approx. £150).

If you are unable to attend completion we can complete on your behalf, but on top of the above fees there will be an additional charge for us or for our agents to attending completion in Spain on your behalf or for accompanying you to verify, translate and explain the deed of transfer (if you require assistance with this part of the transaction we will provide you with a fee estimate in due course).

The purchaser may also have to pay (unless paid by the vendor) Notarial fees (depending on the value of the property, but usually approx. £700-£900) and local plusvalía tax (amount to be advised by the Town Hall).

If we are asked to translate any documents which need to be used in Spain (e.g. a marriage certificate, a deed of change of name, etc) there will be an additional fee for any translations; our translation rate is £130 + VAT per 1,000 words (with a minimum fee of £120 + VAT per document). Any correspondence required to obtain any necessary instructions, details or to arrange this will be additional for the above fee.

How long will my Spanish house purchase take?
How long it will take from your offer being accepted until you can move in to your house will depend on a number of factors. The average process for the purchase of a re-sale mortgage-free house in an urban area of Spain where no mortgage is required to finance the purchase and no legal problems have been found is 6-10 weeks.
It can be quicker or slower, depending on the parties (especially whether they provide all relevant information and documents promptly and the purchaser is in a position to move quickly, already has a bank account in Spain etc).

Stages of the process
The precise stages involved in the purchase of a residential property vary according to the circumstances. However, below we have suggested some key stages that you may wish to include:
• Take your instructions and give you initial advice
• Check finances are in place to fund purchase
• Request and receive the relevant information and documents
• Carry out searches
• Receive and advise on contract documents
• Obtain further planning documentation if required
• Give you advice on all documents and information received
• Send final contract to you for signature
• Agree completion date (date from which you own the property)
• Exchange contracts
• Advise you of the relevant arrangements for payment of the monies on completion
• Contact the Notary, receive the draft deed of transfer and if necessary request any changes
• Make arrangements with you for completion (i.e. you need to attend the Notary’s office to sign the purchase at the same time as the vendors; or if any party is unable to attend their respective representatives will need to attend with a relevant Spanish Power of Attorney)
• Deal with payment of the Notary’s fees and Spanish purchase taxes
• Deal with application for registration at the Spanish Land Registry
• Receive in due course your deed of purchase for you to collect form us or for us to send it to you

SELLING IN SPAIN

We can assist with the sale of a property in an urban area or in the countryside, regardless of whether the purchaser and/or the vendor are individuals or are companies, and regardless of whether you have an existing mortgage on the property and whether or not the purchaser will need to mortgage the property in Spain to finance their purchase.
Our charge will be based on the time spent on the matter and will be charged at the hourly rate of £330 + VAT. The value of the property can also be a factor to consider when providing a fee estimate.

You can contact us with the specific circumstances of your intended transaction and we will provide you with a fee estimate for the work required.

As an example of our fees we will set out below information in the event of the sale of a mortgage-free property situated in an urban area in Spain where the vendor is an individual and the purchaser is also an individual; and the purchaser will not be mortgaging the property in Spain to finance the purchase and the property has a value of less than 300,000 Euros.

Assuming the transaction proceeds smoothly, fees can range from £1,980 to £2,640 (plus VAT) and disbursements. This is not a fixed estimate but is likely to include the usual property searches, exchange of contracts, arranging completion (including instructing the Notary and reading and requesting any changes to the deed of transfer) and correspondence with you and with the purchaser, provided legal problems are not identified (e.g. planning problems, charges, debts etc) and correspondence is kept to a minimum (if you generate a lot of correspondence, or we need to chase you or the purchaser or those who need to provide information or documents as part of the documentations to be provided to the purchasers for their searches, the above estimate is likely to be exceeded). If I need to exceed this estimate we will contact you first and request your authority to continue working.

The above fee estimate assumes that this is a standard transaction and that no unforeseen matters arise including for example (but not limited to) a defect in title which requires remedying prior to completion or the preparation of additional documents ancillary to the main transaction; the transaction is concluded in a timely manner and no unforeseen complication arise; and all parties to the transaction are co-operative and there is no unreasonable delay from third parties providing documentation.

On top of the above estimate, if we need to prepare Spanish Powers of Attorney (“PoA”), the fee is £290 + VAT for drafting each PoA with up to 2 signatories. There will be a surcharge of £50 + VAT for each additional signatory of the same PoA. If separate PoAs need to be produced, each additional PoA will be charged at £150 + VAT. Spanish PoAs need to be signed in the presence of a Notary, the above fee includes having them signed in our office, but if the signatories prefer to sign before their local Notary, they will also need to pay the local Notary’s fee for witnessing their signature/s. In addition, each document will need to be legalised with the Apostille; there is a disbursement of £30 payable for the UK Foreign and Commonwealth Office for this. Any correspondence required to obtain any necessary instructions, details or to arrange this will be additional for the above fee.

If the vendors do not have a Spanish identity number (“NIE”) and you require our assistance with this, our additional fee for obtaining your NIE is, for each NIE, £180+VAT plus a disbursement of approx. £8.50 (Spanish Government fee). Any correspondence required to obtain any necessary instructions, details or to arrange this will be additional for the above fee.

Amongst the disbursements, you can expect to pay local plusvalía tax (amount to be advised by the Town Hall); other minor disbursements such as bank charges, legalisation fees, couriers’ charges, office copy entries, etc. (approx. £150). You may also have to pay all or part of the Notary’s fees (depending on the value of the property, but usually approx. £700-£900) if you have agreed with the purchaser to pay for this.

If you are unable to attend completion we can complete on your behalf, but on top of the above fees there will be an additional charge for us or for our agents to attending completion in Spain on your behalf or for accompanying you to verify, translate and explain the deed of transfer (if you require assistance with this part of the transaction we will provide you with a fee estimate in due course).
If we are asked to translate any documents which need to be used in Spain (e.g. a marriage certificate, a deed of change of name, etc) there will be an additional fee for any translations; our translation rate is £130 + VAT per 1,000 words (with a minimum fee of £120 + VAT per document). Any correspondence required to obtain any necessary instructions, details or to arrange this will be additional for the above fee.

If you also wish us to undertake the work in connection with the recovery of the 3% withholding tax (if applicable) or payment of any additional Spanish Capital Gains tax resulting from the sale you will need to instruct us separately and we will provide you with a fee estimate for that work, which although resulting from the sale of your property in Spain, it is not part of our fees for the sale of the property. Alternatively you may wish to instruct your existing fiscal representative in Spain to deal with this.

How long will my Spanish house sale take?
How long it will take from your offer being accepted until you complete the sale and receive payment will depend on a number of factors. The average process for the sale of a mortgage-free house in an urban area of Spain where no mortgage is required by the purchaser to finance the purchase and no legal problems have been found is 6-10 weeks.
It can be quicker or slower, depending on the parties (especially whether they provide all relevant information and documents promptly and the purchaser is in a position to move quickly, already has a bank account in Spain etc).

Stages of the process
The precise stages involved in the sale of a residential property vary according to the circumstances. However, below we have suggested some key stages that you may wish to include:
• Take your instructions and give you initial advice
• Request and receive the relevant information and documents
• Receive and advise on contract documents
• Obtain further planning documentation if required
• Give you advice on all documents and information received
• Send final contract to you for signature
• Agree completion date (date on which you sell the property and receive payment)
• Exchange contracts
• Advise you of the relevant payment arrangements on completion
• Contact the Notary, receive the draft deed of transfer and if necessary request any changes
• Make arrangements with you for completion (i.e. you need to attend the Notary’s office to sign the sale at the same time as the purchasers; or if any party is unable to attend their respective representatives will need to attend with a relevant Spanish Power of Attorney)
• Deal with payment of the Notary’s fees (if relevant) and Spanish local plusvalia tax (if relevant) or request from the purchaser evidence of payment of the latter and of the Spanish 3% withholding tax and send them to you (unless you instruct us to deal with your Spanish Capital Gains tax return in Spain).

MORTGAGING ON A SPANISH PROPERTY

We can assist you in connection with a mortgage of a property in Spain. Typically this will be done at the time of your purchase of the property; or with the cancellation of a mortgage at the time of the sale of your property. If any of those situations apply to you please contact us and we will provide you with an estimate of our fees.

Banks in Spain are unlikely to agree to a re-mortgage of your property and provide you with a loan on such basis. In the unlikely event of that being your case, we would be unable to assist you.

The most likely scenario for a mortgage to be set up against your property (other than at the time of purchase) would be if you owe money to a relative or friend or to a private UK lending company.

As an example of our fees we will set out below information on our fees in the event of acting for you as an individual property owner (borrower), where and the lender is also an individual and the mortgage is for less than 500,000 Euros.

Our fixed fee for drafting, notarising and legalising (using the standard service) the Spanish deed of mortgage in our offices in London will be £2,900 plus VAT and disbursements. However, if for whatever reason the document is not finally signed, the work done will be charged on a time basis as per my hourly rate (£330 + VAT). This fee includes our fee for explaining and witnessing the document as Notaries. These fees may need to be paid by the lender as in accordance with Spanish Law it may be difficult to enter into a binding agreement for the borrower to pay this. In addition, this document will need to be legalised with the Apostille; there is a disbursement of £30 payable for the UK Foreign and Commonwealth Office for this.

The above fee does not include any correspondence, telephone calls, advice and searches; fees for this will be additional to the above estimate and will be charged on a time basis, at the hourly rate of £330 + VAT. If there are no title problems, property debts, or delays caused by the parties, by missing information or documents or by problems identified as part of the usual work, 2-3 hours (i.e. £660-£990 + VAT) may be sufficient for this aspect of the work provided correspondence is kept to a minimum (if you or the lender generate a lot of correspondence, or we need to chase you or the lender or those who need to provide information or documents as part of the documentations to be provided to the transaction, such as valuations or searches. Otherwise the above estimate is likely to be exceeded; however if we need to exceed this estimate we will contact you first and request your authority to continue working.

On top of the above estimate, if we need to prepare individual Spanish Powers of Attorney (“PoA”), the fee is £290 + VAT for drafting each PoA with up to 2 signatories. There will be a surcharge of £50 + VAT for each additional signatory of the same PoA. If separate PoAs need to be produced, each additional PoA will be charged at £150 + VAT. Spanish PoAs need to be signed in the presence of a Notary, the above fee includes having them signed in our office, but if the signatories prefer to sign before their local Notary, they will also need to pay the local Notary’s fee for witnessing their signature/s. In addition, each document will need to be legalised with the Apostille; there is a disbursement of £30 payable for the UK Foreign and Commonwealth Office for this (assuming we use the standard service). Any correspondence required to obtain any necessary instructions, details or to arrange this will be additional for the above fee.

If you do not have a Spanish identity number (“NIE”) and you require our assistance with this (or if you want us to obtain the lender’s NIE), our additional fee for obtaining each NIE is £180+VAT plus a disbursement of approx. £8.50 (Spanish Government fee). Any correspondence required to obtain any necessary instructions, details or to arrange this will be additional for the above fee.

If we are asked to translate the Spanish mortgage deed or any other documents there will be an additional fee. Our translation rate is £130 + VAT per 1,000 words (with a minimum fee of £120 + VAT per document). Any correspondence required to obtain any necessary instructions, details or to arrange this will be additional for the above fee.

Depending on some of the terms and conditions to include in the deed of mortgage, an official valuation of the Spanish property may be needed, in which case you or the lender can expect to pay valuer fees. This is normally a percentage of the value of the property and you will need to pay that fee to the value direct.

Amongst the disbursements (i.e. third party fees, taxes or expenses), the lender can expect to pay Spanish Land Registry fees (depending on the value of the property, but usually approx. £500-£800); Stamp Duty (the rate of this tax will depend on where in Spain is the property, between 0.5% and 1.5% of the amount guaranteed by the mortgage) although in some cases exemption may be successfully claimed, and where the tax is payable in accordance with Spanish law it needs to be paid by the lender; our/our agents’ fees for payment of tax stamping & registration (approx. £500-£700); and other minor disbursements such as bank charges, legalisation fees, couriers’ charges, office copy entries, etc. (approx. £150).

How long will the mortgage take?
This will depend on a number of factors. The average process for the mortgage of a house in Spain and no legal problems have been found is 6-8 weeks.
It can be quicker or slower, depending on the parties (especially whether they provide all relevant information and documents promptly and the parties are in a position to move quickly).

Stages of the process
The precise stages involved in the mortgage of a residential property vary according to the circumstances. However, below we have suggested some key stages that you may wish to include:
• Take your instructions on the loan/mortgage terms and give you initial advice
• Request and receive the relevant information and documents (including if relevant an appropriate valuation)
• Make some searches
• Draft the Spanish deed of mortgage (and if relevant any Powers of Attorney, obtain NIEs and produce translations into English)
• If necessary make any changes to the deed of mortgage
• Agree a date for the parties (or their attorneys) to attend our office to sign the deed of mortgage
• Legalise the deed of mortgage (and any other relevant supporting documents)
• Deal with the Spanish tax office and with the Spanish Land Registry for registration of the deed of mortgage.

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