In this currently difficult financial climate there always going to be opportunities to be had for the person who is in the right place at the right time. Here at ¡Estupendo! it is our companies philosophy to help our valued clients to find themselves in the right place at the right time. We are in the position to offer properties to buyers that are either a distressed sale or have been taken back by the bank. Firstly, we need to clarify what the difference is between a Distressed Sale and a Repossessed Property. DISTRESSED SALES A distressed sale is where a property owner is having difficulty meeting the agreed notarized monthly payments, and has fallen behind to the degree that the bank has stepped in and needs a solution to be found. At this point we at ¡Estupendo! work hand in hand with the property owner and the mortgage lender to resolve the financial pressures on the property owners, in order for this to happen we need to set a realistic sales price for the property, and activate a marketing plan, one that will clear the debt from the bank or mortgage lender, and leave the property owner free of any lengthy and often costly court processes. Most importantly, by taking responsibility for the situation the owners will not be black listed in the future, because as we all know times are tough and we all need to get back to basics sometimes in order to regroup and move forward. But, we are always aware of the sensitive nature of these situations, so sometimes we cannot directly market the property, so if you are interested in finding out more about these properties, please contact one of our ¡Estupendo! Offices. REPOSSESSIONS Once the bank, or mortgage lender, has gone through the legal registered court process, and is now the owner of the property, it is a different story. As we all know banks are banks, they are not real estate agents, but recently they have found themselves becoming owners of a lot more properties than they would like and in general they do not have the means or capacity to facilitate these transactions. This is where we come in… at ¡Estupendo! we have been working here in Lanzarote for many years and have established strong working relationships and partnerships with many of Spain's leading banks and mortgage lenders. We have regular contact with our partner banks regarding new properties.
We have prepared a mortgage analysis based upon the 1 bed apartment in Puerto del Carmen for the asking price of €67,500 and a deposit of 20%. At this point, please keep in mind that it is different if you are a Spanish citizen. In this case we are going base this on an EU resident with a Spanish Residencia. And this is all subject to the buyer supplying the correct paperwork required by the bank. All mortgage lenders and banks base approval for a mortgage on your proven ability to meet the monthly payments. To explain this further, the banks generally deem it feasible that you can comfortably repay a monthly mortgage up to 25% of you net monthly salary or income, so if you earn net 1,000.00 per month the banks will approve you a mortgage repayment of up to 250.00 per month. A lot of people looking to purchase a property, and need finance, start off looking for a property first, then applying for finance. Quite simply, this is often the wrong way to approach this, it often ends up with a lot of wasted time and disappointment. You need to see what your finances and situation allows you to buy first. We can assist you from the very beginning, we can help you to work out what range of properties we should be looking at, making the decision process a lot smoother, and very often quicker! PURCHASE PRICE €67,500 DEPOSIT 20% €13,500 MORTGAGE REQUIRED €54,000 To keep things simple, we have based this mortgage at a fixed interest rate of 3.75% and have included different period options for the monthly payment options. €54,000 @ 3.75% over 10 years €540.33 €54,000 @ 3.75% over 15 years €392.70 €54,000 @ 3.75% over 20 years €320.16 So now we have these figures, we can work out what you need to show as your official monthly earnings or salary. Based on securing finance on €54,000 @ 3.75% over 20 years €320.16 you would need to be earning net €1,290 per month. As a general rule, you need to set aside approximately 10% of the purchase for the purchase fees, but when purchasing repossessed property, the bank does not charge you the set up costs for the mortgage, so you can make some savings there! If you have any further queries or questions regarding this, please feel free to Contact Us. We are here to help you achieve your goal to purchase a property here on this great island, and as our slogan says, at ¡Estupendo! we are Just A Little Bit Different................... If you would like us to send you updates on new properties that we have, let us know and we will add you to our email list. We look forward to hearing from you soon. The ¡Estupendo! Team
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We have prepared a working example of the process of purchasing a repossessed or bank owned property. It is much easier than you think. At the moment we have a couple of standard one bed apartments on a good complex in Puerto del Carmen, and they are for sale from the bank. The purchase price is €67,500 There is always a bit of negotiation allowed regarding the purchase price, depending on the bank.|
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