7.5 Yearly costs
Community fees.If you own a property which is part of a complex,you will share the use of the common areas which form part of the community of owners. Mainly, common areas and elements will include the pool,the lift shafts,gardens,street lights,building corridors, development boundaries,roof,foundations,entrance areas,parking zones,tennis court,etc.
Each owner will be responsible for their own home as
well as paying their share of those common expenses.
The fee will depend upon the budget agreed for those
costs required to keep the building and common areas
in good order and condition. Normally,a percentage is
allocated to each property according to its building size.
Therefore,the owner of a property of 200 m2 will pay
more fees than the owner of a property of 150 m2 in the
same development.The fees are paid regardless of the
time that you use the property and other areas.
Utility services. Obviously,you will be responsible for
paying other services that you may use in the property
such us water,electricity,telephone,gas,etc. The amount
will vary with usage.
8. Mortgage Finance
The main sources of mortgage finance available to
non-Spanish residents for the purchase of a property in
Spain are banks. There is little difference between the
terms and conditions offered by Spanish banks.Most
of them will offer long-term loans (e.g.20 –25 years)at
commercially competitive interest rates.
The amount you can borrow depends on your income and
the value of the property you propose to buy.The bank will
assess your ability to meet the mortgage
payments based on your current
income and expenditure .Confirmation
of your income will be required,taking
into account your income tax returns
and salary slips or,in the case of those
who are self-employed,the last set of
accounts will normally be required. A
decision in principle to lend is normally
always subject to a satisfactory property
valuation report.If the report is in order,
the lender may lend up to 60 -70%of
the valuation to non-Spanish resident
buyers.
The standard types of mortgage in Spain are:
Fixed rate mortgage.-Here the rate is guaranteed to stay
fixed for a specified period.
The standard variable rate.-This is the most common
type of mortgage interest rate in Spain,which fluctuates
from time to time depending on the base rate applicable,
normally Euribor.
The following costs will be incurred when setting up
a mortgage:
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