Ideal Location.
When making the decision to buy a property in Lanzarote, you need to decide if it is for permanent residence, holiday letting or personal holidays.
If you are intending to relocate to Lanzarote , take into consideration personal needs such as the location of schools, shops, transport, health centres, and recreational centres.
Choosing your Property.
Be open minded!!.Do not dimiss suggestions made to you by the agent as they may have good reason on advising you to explore wider avenues of choice than you had preconceived.
Often a client will ask to view villas in the country and end up purchasing two apartments instead and, of course , visa versa.
There are also many properties available which have a main house and an attached apartment which will provide an income or can be great for the “inlaws” and extended family on the anual holiday visit.
Once you have decided on the location of your investment , it is recommended to spend a few hours in the general area so as to get an idea of general noise, traffic etc.
Once decided on your Property
It is essential to recieve the correct information and documentation from the agent . We at “Sobreti,” can supply a lawyer, recommended by the British Consulate, to advise you on your purchase, however, we also make sure the paperwork has been viewed by an expert eye beforehand.
A “search” would then be made on the property through the local Land Registry , providing a certificate proving the title owner and any incumbrancies on the said property. If you decide to buy a property on a complex with a communal pool, there will be a community fee to pay, so be informed of the monthly payments . If this is not paid your property may have an “embargo” placed on it which could lead to the seizure of your property.
The Contract of Sale is drawn up by a lawyer and a 10% deposit is paid to the vendor by the buyer and terms and conditions are specified within the contract as to price, furnishings, date of completion etc.
There will be a penalty clause in the contract to safeguard both the vendor and the purchaser, this would enforce the vendor to pay back the deposit paid in double if he decided to cancel the contract for any reason, so ensuring no guzzumping, and if the buyer was to cancel the contract they would lose the deposit paid.
On completion both parties would have to present themselves in the Notary´s office located in Arrecife for the public signing of the title deeds. There is an official translator available to make sure there are no misunderstandings and it is obligatory to have the papers read through to all parties in English if they do not speak Spanish.
All monies will be paid by bankers draught cheques issued from a Spanish bank .
Copies of all utility bills are taken and the meter readings duly noted on day of completion.
Registration.
The property will be retrieved from the Notary and the local property tax paid at the Land Registry office within 30 days.
If you calculate approximately 8.5% of the sale price for a sale with no mortgage and approximately 10% for a sale with a mortgage, you will account for the additional costs involved, these being:
Resale Property: Transfer Tax – 6.5% of the sale price
New property: IGIC – 5% of the sale price plus 0.75% Stamp Duty
Land Registry Charges
Notary Fees Lawyers Fees
Plusvalia Tax (similar to Added Value Tax)
See also Property Buying Guide
