Purchase costs and solicitors

[kaz]

Morning one and all, glad to see you all had a good time over the weekend!

We are just about to appoint a solicitor and wondered if the costs involved in buying abroad are about the same..ie the solicitor we have spoken to her costs are 1% of purchase price plus .2% lang registry and .4 for something else I can't remember..then 800-1000 euro's for your utilties to be connected and finally the dreaded 7% iva...do her fee's sound reasonable?  I would love to compare notes

[Gary]

Hi Kaz,

I am afraid I cannot be of much help to you on this one as we took the solicitor supplied by our agent. I now know that this is not the recommended route. However I must say that they have been very helpful.

I think this is a rough guide of a costs breakdown;

I.V.A (VAT) – 7% of the contract price
Legal fees – 1% approximately
Notary and Land Registry Fees – 1% approximately
Title Deed Tax – 0.5% of declared value

If anyone knows different then please do post.

I hope all went well for your son at the hospital last weekend.

Regards
Gary

[kaz]

Thanks for that Gary....seems to be pretty much the same across the board.  I've got a friend who bought out in Granada..though not a new build, and they seem to be paying money out left right and centre.  The agent I purchased with cloud nine have recommended a solicitor who's prices are the same as we have been quoted so seeing as she's done purchases at united Golf before we may as well stick with her.

[valli]

halo everyone


were in the process of instructing a solicitor, we would appreciate any recommendations or referrals, from anyone who has used or been satisfied with their solicitors.

                                                                   many thanks Julian & Valerie

p.s glad everyone had a good time meeting up in Coventry recently.

[kaz]

Hi Gary, one thing I did notice on the solicitors letter is their charges are 1% of the nett purchase price plus expenses and plus 16%iva(Vat)..might be worth noting.

The other thng I meant to ask about was the builders mortgage..I've read that you have to pay a penalty should you not take this with united.  I haven't got contracts yet o was wondering if anyoe could clarify this

[Gary]

Hi,

I have sent you some info.

Hey, did the site go down for a few minutes then?

Gary

[kaz]

Flipin' heck Gary you are quick!..lol..thanks fo that, I will have a look at the contract see if I can make any sense of it.  The builders mortgage looks like a goo option if you don't want to borrow any more than the 70% of what you now owe but if your looking at paying back what you borrowed for deposit and also furniture it might not be the best route..I just think it's a bit much having to pay to not have to take it. 

Didn't notice any problems with the site, though I am supposed to be working ..Good job I work from home and I'm my own boss....NOTE..send memo to Boss to remind Kaz that if she doesn't work she will be stuck here in the rain forever

[kaz]

It would appear there is a penalty for not taking the builders mortgage out if I read that correctly.  I will try to clarify with my solicitor what the cost will be 

[Sandra]

Hi Kaz

I would be most grateful if you would let me know also about this potential penalty - its not been alerted to me, but I will certainly be asking the question.

Best
Sandra

[Gary]

It would appear there is a penalty for not taking the builders mortgage out if I read that correctly.  I will try to clarify with my solicitor what the cost will be 

Hi Kaz,

I can see from reading the contract how you could come to this conclusion. However I have this statement from my solicitor:

Mortgage: The developer may take a mortgage on the properties of the development in order to finance the building works. On completion the purchaser, in order to finance last payment, may take over the mortgage already existing on the property. For that purpose the developer will inform to the purchaser on due time of the possibility to take up the mortgage.

If the purchaser does not want to take over the mortgage offered by the developer, the cancellation costs are born by the developer.

I hope this helps.

Gary

[kaz]

Hi Gary,

Thanks for that.  It was actually my solicitor who told me about the possibility of having to pay not to take up the mortgage..and reading the contract it does appear to say that.  Was your letter in reply to asking the same question(or your solicitor asking that question?)  Maybe it's just how the cotract reads...

[Sandra]

Hi Kaz

After I read your posting I emailed my lawyer in Spain also and he confirmed that there is no penalty for not taking up the developer mortgage.    Hope that helps.

Best wishes
Sandra

[Gary]

Hi Kaz,

No, that is an extract from my solicitor’s summary of the contract, which I received July last year. I hope it’s correct, I must say I have never heard of having to pay this commission before. Surly it would be common knowledge and as such built into and explained within the 10%.
I would like to think as I have it in writing - if this were not correct, I could hold him liable.

Can’t see this being a problem.

Gary

[kaz]

Hi Gary

I have to say it was a bit of a shock to me when the solicitor mentioned it, I've never heard of it before.  I'm going to confrm it with my solicitor so when I hear more I will let you know.

[Dave]

Hi Kaz

If you use the search facility at the top of the forum page,and type in developer mortgage you will find some information regarding taking over the developers mortgage compared to starting a new mortgage with a bank.

Dave