Questions and answers regarding the buying process
Buying a property abroad is a great and exciting business experience. You probably have many questions, thoughts and ideas about how things will be when buying an accommodation abroad. Below we have recollected some of the most common questions, with their answers. To make it all easier for you and get an insight into how the process works.
How do we work in Mallorca Houses?
At Mallorca Houses we operate as a property finder. We are working with various brokers, who have become our partners, in order to find the best suitable items for you. Like this you don’t have to make contact with different agents, we solve everything for you. This means that all your questions about a property are solved by us. We are here for you as a customer, before, during and after purchase.
We help you to find the right property, regardless of where in Mallorca you want to stay. According to you and your wishes, we are look for a number of suitable residential objects and present them to you. Through our partners, we have access to all kinds of objects of any size, style or area on the island. Once we have found a number of interesting homes, we wait for you in Mallorca! We’ll be happy to pick you up at the airport, find nice hotels, car rental and more. We are here for you before, during and after purchase. We act as an advisor to you in your home purchases, to help and guide you through all phases of the buying process.
Is it better to buy new or old?
Buying new or old (resale) is a matter of taste. When we sell newly built, we are very keen on working with the best builders of the industry, i.e.. Those builders who have good references and extensive experience. When we sell items that are resale, we are careful to hand-pick the best items on the island, items that we can be proud to present to you. However, there are certain aspects that may be useful to know when choosing a newly built and resale.
When buying a new item will be generally 20 - 30% more living space for the money, if compared to similar, older homes in the same area. New housing, which many older items may lack, are built with modern construction materials, which contributes to the well-insulated buildings, "quiet" floors and ceilings, double glass windows, air conditioning and building guarantees.
Do you need a lawyer when buying home in Mallorca?
We, of course, are part of the process and accompany you throughout the purchase. The use of a lawyer for a purchase in Mallorca is not necessary, but more security and safety for you as customer. We work with a highly qualified law firm in Palma, who have taken care of real estate business for three generations and have been active in real estate investments on the island for over 65 years. The lawyers assist our clients in all legal issues and work as a reputable law firm in accordance to all ethical rules. The lawyers that we recommend will help you with everything from negotiating rates with bank fees, obtaining NIE (ID Identification) number, bank accounts, repayment times and make sure all documents are correct. Spain is a country, that amongst other things, has complex land registration documents. The lawyer manages all contacts with the authorities and takes care of important issues. As a private individual in a new country, it can be difficult to resolve yourself. We also recommend the establishment of Spanish succession, which the lawyer of course can also help you with. It is important to know that the lawyer is always working for you as a customer and looks after your interests. This agency is very used to assist Scandinavian clients and everyone in the office speaks fluent English. The cost of the lawyer is between 0,5 - 1,5% of the purchase price, depending on the needs. In this way, our customers can feel safe and know what the actual cost will be for the legal aid.
We at Mallorca Houses think it's important that our customers can feel safe with their house purchase and therefore we offer our customers a free consultation with our law firm first. Please contact us if you have additional questions about this process.
Funding from England or Spain?
Our experience says that it is faster and easier for the customer to take a loan in Spain than in England, the home will serve as a backup. Most English banks do not see security in a dwelling, which is located in another country. Our experience is that the Spanish banks are agile and fast. They also have the habit and routine of lending money to foreigners. Our customers, who used the Spanish banks, are very satisfied with their approach and service. We recommend you use the bank through the Spanish lawyers, they will manage the course and all contact with the bank for you.
If you would rather use your English bank, we can even help you with that too. Contact us and we'll inform you more.
It is good to be aware that there is a cost of 11-14% of the price when buying a property in Spain. These costs are for the following expenses to be covered; taxes, stamp duty, legal fees and notary fee. The cost varies depending on whether you are buying a new or old (resale) housing. The costs are not the same but nonetheless very similar. Brokerage fee is always paid by the seller. We are happy to arrange a meeting with the firm, who then can help you bring out the exact figures for this.
Of course, you are always welcome to contact us if you have additional questions about how it is to buy a home in Mallorca!
Warm welcome from us at Mallorca Houses!