THE NEW WAY TO SELL YOUR PROPERTY FAST WHAT IS A RENT TO BUY IN SPAIN? A Rent to buy (also known as Rent to Own) is a contractual arrangement where a property is rented for a specific time period. With the option to purchase the property for a pre-agreed price during that term. The initial payment and all the rent monies paid during the rental period are removed from the pre- agreed sales price at the time of purchase at notary. How does a rent to buy in Spain work? Agree an upfront initial payment and pay (10% of the buy price). Agree a monthly rental amount (all of which will contribute towards the purchase). Agree a sales/purchase price. Agree a term within which to purchase the property (usually 12 – 36 months). The utility bills and communal fees are paid by the buyer. The Suma is paid by the seller until the property has completed and changed to the buyers name. Sign a contract based on the above agreed amounts. Move into your new home. Buy the property within the agreed term with the deposit and all the rent paid being removed from the pre-agreed purchase price. In summary, this approach allows buyers to start to buy their new home in Spain with as little as a 10% initial deposit and with interest free set monthly payments during the rental period. The Rent to buy contract can be a private contract between both parties, alternatively, the contract can be notarised and registered with the land registry, to assist with this we have partnered with independent lawyers Bricio Solicitors. We have also obtained the support of various banks to assist our clients in obtaining a mortgage if/when required and if a currency transfer is necessary we also have several Currencies companies to help you get the best rate available. EXAMPLE:Purchase price €100,000 Deposit payable €10,000 Rent over two years at €500 per month equals €12,000 Total paid during the term €22,000 To pay on completion at notary after term = €78,000 plus fees
The calculation is for illustration purposes only providing a quick indication of what your monthly repayments may be, these repayments may vary according to your personal circumstances and the mortgage provider.
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+34 966 182 321
Mike: +34 622 648 747
Niki: +34 642 016 081
Sun Estates Spain have been working on the Costas now for over 15 years. We are a reputable family run British real estate agent and construction company, with our office located in the wonderful Villamartin Plaza which is one of the busiest expat areas around the Orihuela Costa.