Make the move
Tancrede de Pola explains how a broker can help turn the dream of a move to Spain into reality:
BUYING property overseas can seem like a daunting prospect, but it is not putting off international buyers. Sales of Spanish properties have surged an incredible 72% from this time last year, according to the Spanish land registrars’ association. And many of these sales were to extranjeros.
Brits splashed out an average of €1,890 per square metre on property in Spain.
Whilst retirees or those nearing retirement age represent the majority demographic of those moving here, analysts have also noted a big increase in interest from younger people looking to move to Spain as part of the ‘digital nomad’ cohort.
Whichever category you may be in, The Finance Bureau can help you with the first step, owning your dream property.
Searching for a home abroad is an exciting prospect but it is just one piece of the puzzle. The larger - more complex - part of that puzzle is financing a move.
While a small number opt for cash transactions, most buyers will need to take out a mortgage.
Getting financial advice is the most important thing to do before taking the property plunge abroad.
In most cases you’ll have to arrange a loan with a financial institution based in the country in which you’re looking to move to - which can obviously have its obstacles if you don’t speak the language or aren’t familiar with the country’s processes. There are a few banks in places like Luxembourg and Switzerland who offer mortgages on Spanish properties, but these tend to be for the higher end of the market – think properties worth millions of euros.
It means that for most British people needing a loan in Spain, Spanish banks and financial institutions are the way forward.
This is where The Finance Bureau can help Brits looking to move to Spain.
With established links to all the major Spanish lenders The Finance Bureau acts as a go-between for the client and the bank - but it is important to remember that the broker is not connected to the bank and works independently to find the buyer the best deal available.
When buying abroad, it is imperative to know how much you have to play with when scouring the foreign property market. This will be dictated by various factors, including the amount of deposit available, as well as the level and type of income of the applicant.
The good news is that banks will take into account all incomes, i.e. salaries, dividends and to a lesser extent property rental income, when calculating ‘affordability’, but these must always be clearly defined and declared in the tax return from your country of residence.
When lenders are calculating your affordability, mortgage amounts are measured against your personal income and, existing loan commitments, which must be between 30 to 35% of your net income in order to qualify.
But the best - and easiest - way to make sure your dream move abroad comes through with no hiccups is to talk to a broker… that is what we are here for after all.