10 musts when buying property in Lanzarote.
1. Use a lawyer. It is vital to use the services of a lawyer when purchasing a property in Lanzarote. A professional Lawyer will take care of the whole purchase process for you and look after your interests only.
2. Know the property purchase costs when buying a property in Lanzarote. Most Lanzarote Estate Agents come up with the same old figure of 10% of the property price. Invariably the real costs will differ. The purchase costs may be as low as 8% or as high as 14% of the final price depending on the property price and whether or not you are purchasing with a Spanish mortgage. Also, take advice when considering purchasing a property by means of Spanish limited company. Although you may avoid some initial costs the overall holding costs are much higher and in the majority of cases will make the idea prohibitive. Talk to a tax advisor first. our Property Team will be delighted to give you a simulation of purchase cots before you make your final decision.
3. Know the running costs. Yet again this will vary from property to property. This will include, Electricity, Water, Town Hall Rates, Bin Collection, Income Tax and Community fees where they apply. r.
4. Paying a holding deposit, normally 1% of the property price. make sure you are absolutely sure about your purchase and understand the conditions of the holding deposit contract. Make sure that if you are reliant on a mortgage that this condition is included in the contract. Reputable Lanzarote Estate Agents will also include a clause allowing for a refund in the case of poor title issues. At Lanzarote Investments we will always refund the holding deposit should you encounter a problem with title or a legal matter that has material effect on the purchase.
5.When buying a Lanzarote apartment, or Villa, on a community of owners make sure that you understand any restrictions that may be in place. Such restriction may include not being able to let to tourists or a no animal policy.
6. Understand your mortgage conditions. Some mortgages have an initial period with a discounted interest rate. This rate may rise substantially during the second year or 6 months. Make sure that you understand the interest rate being charged for the duration of the loan. At Lanzarote Investments, we have more than a decades experience organizing mortgages for our clients.
7. Get a budget when buying a fixer upper. When dealing with new services such as an electrical installation an official electrician is required. This can be quite expensive. Ask for an estimate before you proceed with signing any sales documents. We have a local team of builders who will be delighted to organize any refurbishment work that you need.
8. Vacant plots in front of your property. Ask your lawyer to check the latest planning classification for the plot in front. This could have huge implications on the future value of your Lanzarote property.
9. Don't take the local gossip as Gospel, whether positive or negative. Run any issues that you may hear on the grapevine by your lawyer. Nine times out of ten there is nothing to be worried about. However such conjecture may convince you not to purchase a perfectly legal property at a great price. Follow the advice of your Lawyer!
10. Understand the orientation of your Lanzarote property. Not all property for sale in Lanzarote is South-facing. The orientation of your property will have material impact on both the future sales price and letting returns.