Buying bank property in Spain is definitely a great investment, probably!!
We are getting lots of enquiries these days regarding bank repossessions in Spain and for the first time in a long time, we can discuss the benefits with confidence. Bank repos or distressed sales are a minefield.
People assume incorrectly that the bank must be on their side and therefore their job is to help the buyer get a great deal. The banks loyalty is with their shareholders- we can’t ever forget this.
We recently had a buyer, Paul take over a mortgage in La Zenia on a property he bought through the bank. The property- a 75,000€ townhouse was a decent price, nothing to get excited about but the thing was he bought it with just 10,000€. 4,000 to give the property a facelift- painting, repair the electrics etc and 6,000 covered legal fees (1,700€ or so was for conveyancing, we use Spanish Solutions of course) Suma tax, and also included in the fee is this one ….
Cancellation of all debts. The bank had absolutely no intention of helping our client here and the outstanding fees were almost 4,000€ additional to the price. (electricity bill, new electric meter, water bill, Suma tax, community fee, EPC, Certificate of habitation and others).
After some negotiation with the bank by Comaskey and when they realised we have done this before, we know the law and we are not allowing our buyer to purchase the townhouse while inheriting these debts, we got the deal done. It was a lucky one for Paul our buyer, but just shows you how careful you need to be when dealing with the banks in Spain.
On another note, the bank charged Paul’s cousin 1% for accepting a sterling cheque of 100,000€ a couple of days later- that’s 1,000€ wasted just because he didn’t ask us for advice of money transfer. You need to watch your bank charges!! Had he used one of our currency providers, he’d have got a better exchange rate and saved this silly admin fee too.
Back to our bank repossession story…Paul completed and decided to rent the property long term with Christina in the Comaskey rentals department. The rental return is more than covering his mortgage payment. If you buy a bank repossession through Comaskey, you pay the same price as if you buy it directly, or in some cases a better price. We will negotiate the price for you, it’s all the same to us but we want to see you save money!! Our Belgian buyer last week got almost a 20% reduction on a nice detached villa with a private pool in Villamartin.
We can’t always guarantee this sort of reduction but we’ll try! The bank pays us very reluctantly a small commission to shift their properties but they prefer to have the client directly, for obvious reasons.
Here are some important points to consider when buying Repossessions, whether or not you buy through Comaskey:
When a client buys a property in the name of the bank, that is a Bank Repossession, if the property is still in the previous owner’s name- it’s not a repossession. There are a number of things to take into account, as the purchase process as a whole is different to that of a regular resale or new property.
Here are main points to take into account:
1.- The bank will set their price and that will be the deeds price.
2.- The bank pays by law (in theory) any debts on Community and SUMA outstanding up until completion date, and also plusvalia. Remember only if the property is in the banks name is this the case, be careful.
3.- The bank does not pay any debts or costs of reconnection for the utilities, water/electricity unless negotiated in advance. Be careful and use a legal company please!!!
4.- Buyers will pay an administration fee to Comaskey Properties of 6.000€ (Comaskey will provide invoice to the buyer) to cover for the following:
+ Spanish Solutions fees to handle the purchase process in full
+ Utilities reconnection fees for Spanish Solutions. The costs of the metres are to be paid by buyers
+ 2 NIEs
+ 1 power of attorney
+ Habitation certificate costs, if bank doesn’t provide one.
+ Comaskey Properties expenses and costs
5.- The Spanish banks may offer up to 100% mortgage on their deeds price. Legal fees (notary and registry, plus purchase tax) and Comaskey Fees must be paid by the buyer. The bank may decide to include those legal fees on the mortgage, but this entirely depends on the buyers’ incomes and the humour of the bank on that day. We recommend allowing 10.000€ even for a 100% mortgage, yes we see the irony of that last statement.
6.- Properties are sold as seen and the bank never guarantees any contents or possible damage that there may be in structure, electrical or water systems. Any repairs to be done are at buyers’ cost however Comaskey will inspect the property with you and our builders absolutely free of charge to help ensure the property is structurally sound.
7.- After completion, the process of utilities reconnection might take up to 3 weeks, depending on the condition of metres, pipes, etc. Don’t assume you can sleep in the property the day you buy it.
A few extra points…
– Properties that are not in the name of the bank yet, follow a completely different process. I told you at the outset this was complicated!
– Some banks grant 100%, others don’t. Simple as that.
– After you see a property, you must wait 48 hours approximately to see if the bank accepts your offer- even if you are offering the full asking price. (yes, it is nuts, we know that).
– Deposit is typically 6,000€.
– The Administration fee is not a commission and we can show you exactly where the money goes.
– If you buy your repossession through Comaskey, we make sure it’s a smooth process with no hidden charges or surprises.
We have a range of bank repossessions which may suit people who can prove their income, people who rather own that rent and those looking for investment opportunities with little money down.
Please get in touch if it’s something you’d like to discuss more with a Spanish Bank Repossession expert.
Also note, this information is correct right now, September 2016. At any stage the bank we are dealing with my change the goalposts, so if it’s something you might be interested in, we recommend you make an offer right now!
[email protected]
Here are a few bank repossessions we particularly like, especially with the terms we have negotiated.
http://www.comaskey.com/100%25-mortgage%2C-bargain-bank-repossession-6073.html
http://www.comaskey.com/amazing-location-apartment-in-orihuela-costa-6087.html
http://www.comaskey.com/spacious-apartment-for-renovation-in-pilar-de-la-horadada-6096.html
http://www.comaskey.com/3-bed-100-per-cent-mortgage-%21%21-from-276-euro-per-month-6078.html
http://www.comaskey.com/bank-repossessions–6115.html
We are getting lots of enquiries these days regarding bank repossessions in Spain and for the first time in a long time, we can discuss the benefits with confidence. Bank repos or distressed sales are a minefield.
People assume incorrectly that the bank must be on their side and therefore their job is to help the buyer get a great deal. The banks loyalty is with their shareholders- we can’t ever forget this.
We recently had a buyer, Paul take over a mortgage in La Zenia on a property he bought through the bank. The property- a 75,000€ townhouse was a decent price, nothing to get excited about but the thing was he bought it with just 10,000€. 4,000 to give the property a facelift- painting, repair the electrics etc and 6,000 covered legal fees (1,700€ or so was for conveyancing, we use Spanish Solutions of course) Suma tax, and also included in the fee is this one ….
Cancellation of all debts. The bank had absolutely no intention of helping our client here and the outstanding fees were almost 4,000€ additional to the price. (electricity bill, new electric meter, water bill, Suma tax, community fee, EPC, Certificate of habitation and others).
After some negotiation with the bank by Comaskey and when they realised we have done this before, we know the law and we are not allowing our buyer to purchase the townhouse while inheriting these debts, we got the deal done. It was a lucky one for Paul our buyer, but just shows you how careful you need to be when dealing with the banks in Spain.
On another note, the bank charged Paul’s cousin 1% for accepting a sterling cheque of 100,000€ a couple of days later- that’s 1,000€ wasted just because he didn’t ask us for advice of money transfer. You need to watch your bank charges!! Had he used one of our currency providers, he’d have got a better exchange rate and saved this silly admin fee too.
Back to our bank repossession story…Paul completed and decided to rent the property long term with Christina in the Comaskey rentals department. The rental return is more than covering his mortgage payment. If you buy a bank repossession through Comaskey, you pay the same price as if you buy it directly, or in some cases a better price. We will negotiate the price for you, it’s all the same to us but we want to see you save money!! Our Belgian buyer last week got almost a 20% reduction on a nice detached villa with a private pool in Villamartin.
We can’t always guarantee this sort of reduction but we’ll try! The bank pays us very reluctantly a small commission to shift their properties but they prefer to have the client directly, for obvious reasons.
Here are some important points to consider when buying Repossessions, whether or not you buy through Comaskey:
When a client buys a property in the name of the bank, that is a Bank Repossession, if the property is still in the previous owner’s name- it’s not a repossession. There are a number of things to take into account, as the purchase process as a whole is different to that of a regular resale or new property.
Here are main points to take into account:
1.- The bank will set their price and that will be the deeds price.
2.- The bank pays by law (in theory) any debts on Community and SUMA outstanding up until completion date, and also plusvalia. Remember only if the property is in the banks name is this the case, be careful.
3.- The bank does not pay any debts or costs of reconnection for the utilities, water/electricity unless negotiated in advance. Be careful and use a legal company please!!!
4.- Buyers will pay an administration fee to Comaskey Properties of 6.000€ (Comaskey will provide invoice to the buyer) to cover for the following:
+ Spanish Solutions fees to handle the purchase process in full
+ Utilities reconnection fees for Spanish Solutions. The costs of the metres are to be paid by buyers
+ 2 NIEs
+ 1 power of attorney
+ Habitation certificate costs, if bank doesn’t provide one.
+ Comaskey Properties expenses and costs
5.- The Spanish banks may offer up to 100% mortgage on their deeds price. Legal fees (notary and registry, plus purchase tax) and Comaskey Fees must be paid by the buyer. The bank may decide to include those legal fees on the mortgage, but this entirely depends on the buyers’ incomes and the humour of the bank on that day. We recommend allowing 10.000€ even for a 100% mortgage, yes we see the irony of that last statement.
6.- Properties are sold as seen and the bank never guarantees any contents or possible damage that there may be in structure, electrical or water systems. Any repairs to be done are at buyers’ cost however Comaskey will inspect the property with you and our builders absolutely free of charge to help ensure the property is structurally sound.
7.- After completion, the process of utilities reconnection might take up to 3 weeks, depending on the condition of metres, pipes, etc. Don’t assume you can sleep in the property the day you buy it.
A few extra points…
– Properties that are not in the name of the bank yet, follow a completely different process. I told you at the outset this was complicated!
– Some banks grant 100%, others don’t. Simple as that.
– After you see a property, you must wait 48 hours approximately to see if the bank accepts your offer- even if you are offering the full asking price. (yes, it is nuts, we know that).
– Deposit is typically 6,000€.
– The Administration fee is not a commission and we can show you exactly where the money goes.
– If you buy your repossession through Comaskey, we make sure it’s a smooth process with no hidden charges or surprises.
We have a range of bank repossessions which may suit people who can prove their income, people who rather own that rent and those looking for investment opportunities with little money down.
Please get in touch if it’s something you’d like to discuss more with a Spanish Bank Repossession expert.
Also note, this information is correct right now, September 2016. At any stage the bank we are dealing with my change the goalposts, so if it’s something you might be interested in, we recommend you make an offer right now!
[email protected]
Here are a few bank repossessions we particularly like, especially with the terms we have negotiated.
http://www.comaskey.com/100%25-mortgage%2C-bargain-bank-repossession-6073.html
http://www.comaskey.com/amazing-location-apartment-in-orihuela-costa-6087.html
http://www.comaskey.com/spacious-apartment-for-renovation-in-pilar-de-la-horadada-6096.html
http://www.comaskey.com/3-bed-100-per-cent-mortgage-%21%21-from-276-euro-per-month-6078.html
http://www.comaskey.com/bank-repossessions–6115.html
