Lanzarote
SL559788
Disclaimer: Nothing in this article consitutes financial or legal advice. Always seek help from a reputable, independent professional on these matters.
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Ah, Lanzarote! The mere mention of this Canary Island evokes images of sun-soaked beaches, charming villages, and a relaxed lifestyle. But what if you could turn that holiday fantasy into your everyday reality? Buying property in Lanzarote is an exciting venture, but it's not without its complexities. With expert guidance, you can navigate the local property market with ease. To help you along, here's a straightforward guide to making your dream home in Lanzarote a reality.
10 Essential Tips for Buying a Home in Lanzarote
- Hire a Trustworthy Lawyer
- Know the Real Costs
- Understand Ongoing Costs
- Be Sure Before Paying a Deposit
- Check for Any Restrictions
- Understand Your Mortgage Terms
- Get a Quote for Renovations
- Check Nearby Land
- Don't Rely on Local Rumours
- Know the Home's Orientation
Selecting a trustworthy and professional estate agent is vital. A knowledgeable local agent can make the entire process run smoothly and can answer any questions you may have.
Know Your Budget
Factor in All Costs
When we talk about budget, we're not just referring to the property's price tag. Have you considered the notary fees, taxes, and potential renovation costs? Make sure you've got it all covered by budgeting for an extra 10% of the property price for these type of costs.
Financial Pre-Approval and Mortgages
Before you even start looking, get a financial pre-approval. This will give you a clear picture of what you can afford, making your property search more focused and less stressful.
Lanzarote offers some advantages for mortgage seekers, such as lower interest rates compared to most Northern European countries. You'll usually get a response to your mortgage application within two days, and it's wise to compare offers from different banks.
You'll need to submit various documents for your mortgage application, including proof of income, tax returns, and details of other assets. Contact us for a referral to a trusted mortgage lender.
If you're taking out a mortgage, your bank will require a property valuation. This is an additional cost you'll need to cover. While structural surveys aren't usually required in Lanzarote, it's highly recommended and you can opt for one for added peace of mind.
Requirements and Location
The first and most enjoyable step is browsing through available properties. It's crucial to have a clear idea of what you're looking for. If you're set on a 3-bedroom house with a sea view in Playa Blanca, don't waste time on 1-bedroom flats near the mountains. Also, be mindful of your budget and focus on properties within your price range. However, keep an open mind; you might stumble upon something unexpectedly perfect.
Proximity to Amenities
Do you fancy a morning stroll to the local café or a quick drive to the supermarket? The property's location will significantly impact your quality of life.
Resale Value
Think long-term. A property near the beach or city centre is likely to appreciate in value more quickly than one in a remote area.
Ongoing costs
Make sure you know the average price of electricity, water, town hall rates, bin collection, income tax and community fees where they apply so you know if you can afford to keep the place running.
Legalities and Paperwork
NIE Number
Get yourself a Spanie "NIE" number. This personal tax identification number is mandatory for all foreigners living in Spai. It is necessary for dealing wit legal, financial, professional or social affairs in Spain, regardless of whether you are a resident or non-resident.
Hire a Local Solicitor
Navigating the legal landscape can be tricky. An independent solicitor who understands the ins and outs of Lanzarote's property laws will be invaluable.
Check Property Titles
Ensure that the property has a clean title, free from any legal tangles or disputes. This will save you a world of trouble down the line. As mentioned earlier, if there are big issues and you want to pull out of the deal, make sure your holding contract states that you are owed back the deposit in case of issues with the title deeds.
Inspections and Surveys
Structural Integrity
Don't judge a book by its cover, or a house by its façade. Hire a professional to assess the property's structural integrity.
Future Repairs
Be aware of any impending repairs. Will the roof need replacing in a few years? Are the windows showing their age? Factor these into your budget.
Negotiation Skills
Be Prepared to Walk Away
If the deal doesn't feel right, don't be afraid to walk away. There are plenty of fish in the sea, or in this case, properties in Lanzarote.
But Also, Be Quick
Good properties get snapped up quickly, especially on a small island that is very high in demand with foreign property buyers and building new property is highly regulated. If you've found your dream home and the price is right, don't hesitate to put in a deposit to reserve the property.
Final Steps
Reserving a property
Make sure you understand the conditions of the holding deposit contract, typically 1% of the price. If you are reliant on a mortgage, make sure that this condition is included in the contract. Reputable Lanzarote estate agents will make sure there is a clause in place allowing for a refund in case the property title is poor or faulty.
Closing the Deal
The first major legal step in buying a home in Lanzarote is signing the initial contract to reserve the property until the paperwork is finalized, often called a 'Sales Contract.' This important document outlines the terms of the sale and the agreement between you and the seller. It will specify what's included in the sale, like furniture, and give an estimated date for when the sale will be completed. The contract may also explain what happens to the deposit if you choose to pull out of the deal later on.
Once you've settled on a property, it's time to close the deal. This involves signing contracts, transferring funds, and finally, getting the keys to your new home.
Around 4-6 weeks after signing the initial contract, you'll complete the sale at a Notary's Office. The Notary will review all documents and ensure all fees and taxes are up to date. If you're not a resident, you'll need to show your passport and may require a translator.
After all the formalities, you'll sign the final deeds, pay the remaining balance, and receive your new keys. Your lawyer will then register the property, making you the official new owner.
Celebrate!
Congratulations, you're now the proud owner of a property in Lanzarote! Pop the champagne and celebrate this significant life milestone.
Conclusion
Buying property in Lanzarote is not just an investment; it's a lifestyle choice. By following these essential tips, you're well on your way to making an informed, savvy purchase. Here's to your new life in paradise!
FAQs
Q: Is it safe to buy property in Lanzarote?
A: Yes, provided you follow legal procedures and work with reputable agents.
Q: Can non-residents buy property in Lanzarote?
A: Absolutely, non-residents can own property, although the buying process may vary. Especially post-Brexit there are additional rules and limitations for UK passport holders.
Q: What are the average property prices in Lanzarote?
A: Prices vary widely depending on location and property type. Tap SEARCH in the top navigation to get an idea of the current market.
Q: How long does the buying process in Spain take?
A: Typically, it takes 2-3 months from the initial offer to closing but it varies. If you have financing and all required legal documents in place, you are in the area, and the seller wants to finalize the deal fast, it can be quicker.
Q: Do I need to learn Spanish to live in Lanzarote?
A: While not essential, learning some basic Spanish phrases can enrich your experience.
