LANZAROTE PROPERTY : BUYERS GUIDE

You don’t have to be a resident or a Spanish national to buy property on Lanzarote.
And the whole process is simple and straightforward.

1. Find A Reputable Agent

Estate Agents here tend to have a much broader role than they do in the UK.

Any reputable agent will be happy to take care of all of the ancillary items that arise for you – such as opening a Spanish bank account, helping you find a lawyer, securing a mortgage and advising on all manner of relocation issues.

2. Set Your Budget

Allow 10% on top of the purchase price to cover the following items:

• Stamp Duty — 6% (5.5% on new builds)
• Registry Fee
• Notary Fee
• Plus Valia Tax
• Mortgage Arrangement Fees
• Lawyers Fee

The standard Estate Agents fee is 5%.  This is included in the purchase price and is paid by the seller.

3. Open A Bank Account

The simple, standard way of completing your purchase is to transfer your funds into a locally based bank account.

It is easy to open a non-resident bank account here and we are happy to handle this for you.

4. Secure A Mortgage

Interest rates are lower in the Euro zone than they are in the UK.  So it makes good financial sense to take out a mortgage here.  Usually, this is done with the bank you have opened your account with.

Non-residents can apply for mortgages of up to 75% of the value of the property they wish to purchase.

Local banks will require the following paperwork:

• Payslips/payroll (3 previous months)
• P60
• Passport photocopy (for all named applicants)
• Proof of other income/assets

The self-employed will need to provide the following additional paperwork:

• Statement of accounts (last two years)

• Proof of tax payments (last two years)

Some local banks may ask to carry out a credit check on applicants in their country of residence.

5. Get A Valuation

Once you have applied for a mortgage your chosen bank will carry out a valuation. This usually happens within two weeks of receiving your application.

Banks will only lend funds against their valuation price NOT the purchase price.

Valuations normally cost around €300.  

6. Sign A Purchase Contract

A purchase contract will then be drawn up, outlining all of the information relevant to your purchase, such as the agreed price and a timescale for completion (usually 4-6 weeks from signing).

7. Pay A Deposit

This purchase contract becomes effective upon payment by the buyer of a 10% deposit.

This deposit payment is non-refundable. Should the buyer withdraw after this contract has been signed they then forfeit this 10% deposit. If the vendor withdraws he must refund the 10% deposit plus payment of a further 10%.  

8.Transfer Funds

The buyer will then need to ensure that funds are in place to complete the transaction.  It is worth noting that a number of companies now specialize in forward fixing currency exchange rates – which can allow a buyer to secure a better rate than offered by most banks. 

9. Complete The Purchase

Completion takes place at the Notary Office and under the supervision of your agent.  This is where the deeds are signed and the balance of the purchase price is paid, along with settlement of the notary fees and taxes.