The Key Steps to Buying a Bank Repossessed Property with Girasol Homes.
1) Identify Properties and arrange viewings.
Please complete our Viewing Request Form and provide a copy of your passport(s). We will then arrange a viewing of the properties with the Bank. This complies with GDPR and most banks regulations .
The Banks generally require at least 5 working days’ notice, so let’s plan your trip with this in mind, we will look to add other properties as well.
The viewings are usually accompanied by a representative of the Bank and one of our senior members of staff.
Viewings can only be made weekdays Monday - Friday 10:00 - 18:00 (usually not weekends or public holidays although exceptions can be made in some circumstances).
2) Making an Offer.
We will look to sit with you and guide you on what offer to make, in some (but not all) cases we are potentially able to secure an offer below the asking price.
At this stage the bank will require information on how you will wish to purchase the property and will ask for a Mortgage application to be completed or proof of funds if you are paying in cash.
3) Mortgage Application (if you need one).
We will assist you with the application process and look to negotiate the best deal we can for you, you need to be prepared to pay a deposit of between 40%-50% of the offer price plus the buying costs and our professional fees.
We are able to offer UK clients an equity release or Re-mortgage facility to meet these costs, subject to status and qualification, we recommend this is done before you look to pay a deposit ideally. You are going to need Bank statements, Experian credit reports, P60’s and the information most banks will require.
4) The Legal Process.
We introduce you to an independent lawyer (specialised in dealing with the complexities of bank repossessions) who will carry out all checks on the property and ensure all is legal, they will also assist you in obtaining, the N.I.E number you are required to have (see Girasol Homes Guide), opening of a bank account, connection of utilities and making sure the property is debt free for you the new owners.
This service will cost you (Lawyers’ fees) 1,500 euros. This can vary if the case is complex or there are multiple units.
5) Payments & Fees. How to secure a property.
You will be required to pay a reservation fee once your offer has been accepted, this is up to €6,000. This fee is held in an account with the Bank until legal completion, it is deduct- ed from your completion statement.
The balance of Deposits and Fees will be required by your lawyer before the signing of the title deeds and a full breakdown is sup- plied before completion is due. This can be also done via Power of Attorney. Girasol Homes fees are also held in this account and are released on completion.
Girasol Homes brokerage fees are also due at the day of signing the title deed and collection of the keys and will be paid via the lawyers whilst the completion amounts are being disbursed, we will provide an invoice for our professional fees to you.
Residential Property – Girasol Homes Professional Brokerage Fee
Information on demand
As you the client are paying Girasol Homes a professional fee, we work for you and always work in your best interest, helping to secure you the best bank owned property at the best price. Like a Buyers agency.
These professional fees are held in escrow accounts until the transaction is completed in your favour.
Definition of a “Repossessed Property”
This is the general term used to describe properties, offices, commercial buildings or land which have ended up in the hands of a bank due to non-payment of the loans associated with the property. They are homes whose new owner is the bank.
Do they have water and electricity supplies connected?
Generally, the supplies will have been disconnected. To reconnect the supply a new contract will have to be taken out with the corresponding companies. We can and will assist you.
What can you expect the condition to be?
It can vary a great deal. Some are quick cosmetic fixes, some are complete overhauls, we can help with most of the common issues and have access to builders and tradesmen, as well as electrical shops and furniture stores.
Is it safe to buy a Spanish Repossession property?
Yes, as long as everything is properly checked by the team responsible for buying it. Girasol, Lawyers and Mortgage Brokers. The banks representative will sign the deed of sale in favour of the buyers, debt and lien free.
Could there be outstanding issues and finance?
No. The Original Loan taken out on the property will be cancelled and the property will then appear as charge free in the Spanish property registry. If there are any doubts regarding payments due to any communities or the Council (IBI tax) these should be paid before the deed of sale is
Are these sold as seen?
Yes, you buy the property at a discount, there are no warranties, it is your responsibility. We can assist with companies and contacts to assist with work and advice.
Are they cheaper than other similar resale properties which are not repossession properties?
Usually yes and in some cases a lot cheaper. But you must take property condition and presentation into account. If you go to view repossession homes, you will see them in a non-dressed state. You will need to be able to look beyond the initial state of these properties and imagine it in good order, furnished and clean.
Take Action today
Contact Girasol Homes Spain for all the information and to discuss looking at buying your Bank Property
UK Head Office + 44 1974 299055
Spain Office +34 965 321 346