Guide to buying a property in Spain

The process for buying a house in Spain is relatively straightforward - and usually takes far less time than the average house-purchase in the UK. But it is a good idea to know who does what throughout the process, to minimise the chance of any obstacles cropping up en route. Setting your budget: First, bear in mind that your budget needs to stretch some way beyond the mere cost of the property. When buying a Spanish property, add 10% to the house price to cover all taxes, legal and notary fees you will need to pay. Also plan your mortgage in advance - either a sterling or Euro mortgage from a Spanish bank (eg. Solbank has a good service for foreign homebuyers) or from one of the familiar UK names now in Spain. A Euro mortgage is advisable, as if the asset (the property) and the liability (the mortgage) are in the same currency you avoid possible losses due to exchange rate fluctuation. Also, if you intend to rent out your property, you will receive Euros, so life is less complicated if you can offset the rent against mortgage repayments in the same currency. Visiting properties: Your estate agent will arrange for you to tour properties and even organise your trip from the UK to Spain, and accommodation if required. If you go through Lighthouse, your Lighthouse Customer Services Consultant will select the most appropriate estate agent to deal with the area and properties you are interested in. When visiting properties, do your research before you arrive in Spain. Know what kind of range of property is available in your chosen area and what the going market value is. Check with rural properties in particular what utilities the property has - and what can be installed. The property may suddenly seem less tempting if you are faced with having to deal with installing mains water and electricity. Also check whether you can have a landline - important if you intend to work from home and use broadband internet Although the Spanish do not usually bother with getting a survey, it is advisable for foreign buyers to do so as it may throw up potential problems - again, with old and rural properties in particular, which has been built to different standards than what you might expect. Your Lighthouse agent can recommend a builder or architect to carry out a UK-style survey for you. Lighthouse agents are bound by the Code of Ethics to enlist only reputable parties. Ask about local amenities such as shops, bars, restaurants, schools and doctors. Think what you will need within walking or easy driving distance. Making an offer: To make an offer, you usually need to put down around 6,000 euros. The agent makes this offer on your behalf and then the vendor will accept or decline. The sum put forward becomes non-refundable when the offer is accepted by the vendor. If the offer is rejected by the vendor the buyer has the option of making another offer or receiving a full refund of the money. Find out as much as possible about the vendor's reasons for selling. If they are moving for a job or have already bought another property, their urgency to sell may give you more scope for bargaining. Equally, reveal little about your own circumstances to the vendor and their agent and don't be pressurised into agreeing a price. As in the UK, an offer is not considered a commitment until both sides agree on all aspects. Make sure your offer includes the following contingencies: * That the offer is subject to mortgage availability (if a mortgage is necessary). * How much deposit you are prepared to pay. * The payment terms (firstly the reservation is paid, then private purchase - 10% is most common, and the date the remaining balance is payable). * What fixtures and fittings you consider to be included in the price (you should receive an inventory list). * What other costs are involved in the transaction - costs such as lawyer fees, notary fees, taxes are on top of the quoted property price. Before you commit to putting down any money in the non-refundable holding deposit, there are various checks you need to carry out on the property and the owner. Your offer is based on the contingency that the property passes an inspection by professionals (e.g. a structural survey by an architect, if necessary). Then you can agree on the price and put down your deposit. Completing the purchase: When you are ready to complete on your Spanish property, you must sign the escritura p