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Buying a Flat
Valencia Connect > Accommodation > Buying a Flat

Buying a Flat in Valencia.

It doesn't take long for the coastal breeze and easy-going, outdoor lifestyle of Valencia to work its magic. You could quickly find yourself under the spell, extending your stay, considering putting down roots and even setting up home. Yet, despite its relaxed atmosphere, things are moving and shaking. Property prices have already rocketed and are tipped to increase. Several zones are either undergoing or lined up for development including plans for the main railway station and the Mestalla football stadium. And right after the Americas Cup and the arrival of the Pope, Valencia generally underwent a make-over. So now is a good time to stake your claim on a place in the sun.
 
The first things to consider are your budget and preferred location.  Considering the rate of development and expansion of Valencia, the surrounding areas could soon become wealthy suburbs. On the other hand if you´re looking for a rural retreat then tread carefully since it isn’t unknown for a country house to only be registered as a farm making occupation or even access to water supplies illegal!

In addition to comparing estate agents, you should also keep your eyes peeled for “Se Vende” notices at street level. These private vendor sales eliminate the estate agents, and his 5% cut of the property sale, from the process. However, these independent negotiations can sometimes prove complicated and stressful. Estate agents offer good local knowledge of up- and- coming areas and of current/ future transport links. While some have an English speaking representative, it is also possible to find a native English speaking estate agent. (Visit our directory for estate agent details).

Starting from the purchase price, the deposit is generally 8-10% with associated costs of property transfer tax, Notary, land registry and legal fees of 10- 12% on top. When picking your property you’ll need to guard against falling foul of the particularly nasty LRAU law (Ley Reguladora de la Actividad Urbanistica) which gives developers the right to purchase properties on land ear- marked for regeneration. To avoid getting your fingers burnt check with local planning authorities for any development applications lodged. Although not obligatory, it’s worth using an independent lawyer for guidance through the unfamiliar buying process. Many have English speaking representatives for clarifying Spanish legal terms and requirements.

After tracking down your dream property the next stage is putting down a deposit. The deposit contract is where things become legally binding since once signed the buyer is tied to completion of the sale and will lose their deposit if they pull out. This contract should contain exact details of the legal owner as stated with the Local Land Registry and a description items to be transferred with the property such as furniture, air-conditioning and even the garage. It's worth considering whose name goes in the Local Land Register, as Nationals are due for a lower tax bracket than foreigners.
Since this contract acts as a verbal buyer- seller agreement you’ll need to state the purchase price, form of payment and completion date within. 

With the deposit contract signed you’ll quickly need to secure a mortgage.  Estate agents or lawyers can shop around and help find a good rate on your behalf. There are two important rates to take note of when considering a mortgage. The initial interest rate (TAE), usually sets for the first six months and is often competitively low (a good rate is around 2.5%). However the rate which kicks in after the TAE is more important. This consists of the Euribor, the European interest rate, which is set monthly , and the banks own rate which can vary between 0.39 to 0.75. Banks will asses your credibility for a mortgage and require your NIE and a copy of your work contract or evidence of earnings. If your earnings don’t prove sufficient credibility it’s possible to be offered a mortgage based a on guarantor’s signature. This person would need to take up repayments if you default and must be in full-time employment and own property.   It’s worth investigating evidence required the bank since there can be complications if your guarantor is non- National. 

On the big day of signing deeds at the Notary office and again when you register the change of ownership in the Local Land Register either your lawyer or estate agent should be present. They can continue to monitor the later process, which often takes several weeks to complete, while you are settling into your new place.

This article is intended to give a general indication of the property buying procedure in Valencia, and you are strongly advised to do your own detailed research and consulting the relevant experts before purchasing property in Spain!

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