RENT TO BUY IN SPAIN
If you were considering the option of Rent to Buy in Spain in order to own your dream property but aren’t sure how the process works, then please see below for our handy guide on the steps, and what it means for both you and the vendor. The schemes are becoming quite popular, but there’s a few things you need to know, before fully committing to ensure that a Rent to Buy in Spain scheme is right for you:
1. Property to be taken on annual lease with an appropriate agreed price which is somewhere between the normal monthly rental price and that which can be achieved on holiday lets
2. Client can redeem entire rental if purchase completed within 6 months. The client can redeem 80% if purchase completed within 12 months. The client can redeem 65% if purchase agreed within 24 months. The property will not be eligible for rental payment redemption after 24 months unless otherwise agreed and if agreed would carry a further 10% premium on property value and also a reduction of redemption amount to 50%.
3. Purchase price is agreed upon lease to buy contract. This is at the current marketed price of the unit. To allow for inflation, administration and property value increases, each property will raise in value by 10% per calendar year. For example, one property valued at 99k the price agreement will be £99k within a year one. Year one to two, £110k. See notes above for any agreement after 24 months. Purchase price does not necessarily include all furnishings or equipment, but could easily be added into the deal for a set amount This amount can be simply deducted on their ‘cashback’ amount upon redemption and means they do not need to find the money to furnish the property
4. Contracts would require credit checks on potential renter prior to the agreement to ensure that they will be eligible for a future mortgage
5. The benefits for client are clear and simple:
UP TO 100% CASHBACK of ALL your rental payments to use against your new mortgage.
Pay rent for the furnished property you desire.
Use the rent you have paid to save as a deposit for your mortgage.
We will then pay you back upon completion of the purchase, up to 100% of rental payments made – see structure info above.
There is a clear benefit to first-time buyers. They do not need to throw money away for a long time renting until such time as they can save up to find a deposit for the lender – They can save up simply by paying their rent!
SECOND OPTION FOR RENT TO BUY IN SPAIN
1. Pay down deposit 25% and the remaining balance within 3-5 years in monthly instalments plus the interest agreed upon contract
*** Please note all schemes are subject to contract and negotiations
