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Euro property bargains up for grabs in Spain

British buyers are leading the pack when it comes to snapping up properties in Spain encouraged by a weak euro and a property market at rock bottom.

Published: 20 February 2015 14:15 CET
Euro property bargains up for grabs in Spain
The euro is the weakest it has been against the pound in eight years, meaning huge savings.

Spain tops the wish-list for potential second home-owners living in Britain proving that  neither the economic crisis nor the planning corruption scandals of recent years have put them off.

House sales went up for the first time in 2014 since the construction bubble burst with foreign buyers accounting for almost one in every five houses sold in Spain last year, an increase of over 19 percent from the year before.

Official statistics from Spain published last month record that French purchasers made up 10.48 percent of the market, German buyers accounted for 6.45 percent of sales and Belgians 6.19 percent.

By far the biggest percentage of buyers were the Brits at 18.6 percent and it’s no wonder.

Spain has now overtaken France as the destination of choice for holiday homes for British buyers of a second home, a survey published by Rightmove Oversees in January revealed.  

Some 37 percent of Brits looking to buy abroad said they would choose Spain with only 23 percent opting for a property in France.

With the euro at an eight year low against the pound, estate agents in Spain are already seeing a rush from British buyers eager to snap up a bargain.

These three bedroom town houses on the Brisa de Alenda golf course are be sold from €145,000

"We're seeing British buyers eyeing up cut-price properties across Spain in high numbers right now, as they can get so much more for their money than they could a few years ago," Martin Dell, the director of leading Spanish property portal Kyero.com told The Local.

"But what's interesting is the number of buyers looking to snap up properties with heftier price tags too."

For example, this new build three bedroom villa with pool in Benijofar, Valencia, which is on the market for €335,000 would cost a British buyer £250,000 at the current exchange rate, while back in 2009 it would have cost £310,000.

"With the exchange rate looking so favourable, it really is a case of the more you spend, the more you save at the moment," observed Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España.

"There are some incredible bargains on the market at the moment, particularly in popular areas like the Costa Blanca," he said.

In Alicante, for example,  this a two-bedroom apartment in the newly constructed La Recoleta III development is going for just €142,000, not bad for a holiday pad just a few metres from the beach.

PHOTO GALLERY: The highs and lows of the Spanish property market. What can you get for your money? 

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PROPERTY

Q&A: What to do if you buy a property built illegally in Spain

Buying an illegally built property in Spain is fairly common but can have several consequences down the line. Here's what you need to know, how to make it legal, whether you can sell it, and the benefits of doing so.

Published: 25 April 2024 09:35 CEST
Q&A: What to do if you buy a property built illegally in Spain

Unfortunately, over the years, many properties have been built illegally in Spain, not adhering to local rules and regulations. Foreigners who don’t know the legislation can easily fall into the trap of buying one of these properties, only to find out later down the line.

Maybe it’s when they come to sell or perhaps it’s when they want to do works or improvements on the property.

There are several reasons a home could have been built illegally in Spain. Firstly, it could have been built on the wrong type of land. This is it could have been built on suelo rústico, rural land where residential properties are prohibited, also called no urbanizable. 

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It could have also been built too near the coast. This is down to the Ley de Costas or Coastal Law, which was brought into force in December 1989 in order to protect the costas from overdevelopment and high rises spoiling the landscape. 

The law defines different areas of the beach and dictates which is public land, owned by the state and which parts can be owned privately and built on.

If you buy or own a house in one of these non-buildable zones, there are many problems you could face down the line, often sooner rather than later. This is because there are several rules you have to abide by concerning works, reforms and extensions. In some cases, they may not be allowed at all and everything must be approved first by the local government by providing a detailed project.

Because of coastal erosion, this issue is getting worse as some shoreside homes that were once built outside of these areas are finding that they’re now illegal.

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The house may have also had extensions made to it that were built without a license, meaning that the extra parts are illegal.

Q: How do I know if my home is legal or not?

A: Unfortunately it can be difficult to know if your property is legal or not. You could have bought and signed for it with a notary and it could be inscribed on the Property Registry, but this still doesn’t mean it was built to the correct specification and on the right land.

The only way to truly tell is to find out if your home ever had a Licencia de Primera Ocupación or First Occupation license, also referred to as a Cédula de Habitabilidad or Certificate of Habitability. This means that according to the authorities, it is suitable to live in and has the correct licenses.

READ ALSO: How to get Spain’s certificate of liveability for properties

Q: What happens if my property doesn’t have a habitability certificate?

A: If your property has never had a Certificate of Habitability, you must regularise the legal situation. First you’ll need to start a legalisation file (expediente de legalización) and contact the town hall. Depending on the seriousness of the case (ie. where exactly it was built, if there’s any structural danger, whether the entire property is illegal or just an extension) the cost of making an illegal property legal can be considerable. As such, each case must be studied individually with the help of an expert to determine whether it is even feasible or worth the investment.

The next step is to bring in an architect and check whether the property complies with all the building regulations. If it does, you simply need present the expediente de legalización to your local town hall, who will confirm whether or not the property adheres to building regulations and can be made legal.

If it doesn’t, you’ll need to consider whether it will comply with the regulations after some renovations. If that’s the case, you’ll need to draw up a renovations project document (proyecto de reforma) outlining the proposed changes and how they will adhere to building regulations. It must be presented to the town hall along with your expediente de legalización.

According to law firm Acal, the legalisation process can be broken down into steps as follows:

  • Contact the town hall.
  • Begin with the expediente de legalización when the town hall confirm whether or not the property can be made legal.
  • Pay the corresponding fees and taxes (in this case it will be IBI) depending on your municipality and region.
  • If you need to make renovations, obtain the proyecto de reforma and hire an architect.
  • Obtain a building permit from the town hall.
  • Once completed, register the property in the Land Registry.

READ ALSO: What is Spain’s IBI tax and how do I pay it?

Q: Do I really need to make my property legal?

A: Yes, because it will benefit you in the long run. It doesn’t matter what the previous owner told you when you were originally buying the property, owning a property that isn’t fully legal (or legal at all) can create problems and even lead to fines worth up to 20 percent of the property’s value in extreme cases.

By going through the legalisation process and making the relevant renovations, if necessary, you gain a legal property for all purposes and with all the benefits that entails.

You will not have problems setting up, paying, or cancelling electricity, water or gas utility services. You won’t have to undertake reforms and renovation work unofficially, avoiding the eyes of the authorities. Instead you’ll be able to register your property in the Land Registry, which will make things much easier when you decide to sell it or pass it on.

In terms of selling it, perhaps that is the biggest benefit of legalising your illegal property: by registering it properly, you will be able to benefit from its full value when selling it. When a property is illegal, the appraised value will probably be no more than 40-45 percent of its real value at best.

The renovations needed to get your property in shape to meet the building regulations could be costly, but will they cost you half of the total value of your property? 

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