How To Move To Spain From The UK
If the sunny sights of Spain have got you ready to move to your very own place in the sun, a Spanish property could be just a short journey away. But how exactly do you move to Spain from the UK? Our guide for UK expats makes moving to Spain from the UK simple with some handy tips.
Where in Spain Will You Move to?
The first step in how to move to Spain from the UK is to decide on where you would like to live in Spain. There are many areas popular with expats from the UK and each area has its own distinct charm and amenities. Take a look at a few areas you would like to live in and decide if they have everything you are looking for in a new home in Spain. It is important you take the time to plan your move to Spain from the UK to ensure it is the right decision for you and that it is done properly.
Make Sure you Choose a Reputable Seller
Whenever property is at stake there are bound to be those who cut corners or decide not to do everything by the book. By choosing a reputable seller in Spain for your move from the UK you will be able to plan your move to Spain with complete peace of mind knowing that everything is above board and done the proper way.
Visit Your New Home Before you Move
When planning how to move to Spain from the UK it is important that you fly out to Spain yourself to take a look at potential properties. Whilst pictures can show you the bare bones of the property, an in-person inspection visit can help you really decide if a property, and area, is really for you. At Mercers, we know how important this step is so arrange inspection visits for potential buyers to allow them a few days in their chosen area to view the properties they are interested in buying.
Carry Out Checks to Ensure the Sale is Legitimate.
Any reputable Spanish property agent will take the relevant steps to ensure that your property and the sale is legitimate. This may include things such as checking the legal ownership of the property, ensuring all planning permissions have been granted, checking there are no unusual conditions attached to the sale and providing the necessary documents in both Spanish and English. It is important that these aspects of the sale are checked before you proceed with the sale to ensure you don’t get caught out by a sale that will cost you a lot of money further down the line.
How to Arrange a Mortgage for a Spanish Property
As with buying a home in England, those moving to Spain will need to arrange a mortgage for their new Spanish property if needed. For ease, many of the customers we help buy a property when moving from the UK to Spain organise funding in their home country with some putting up existing property as security as they would when buying property in the UK.
Making the Move to Spain from the UK
Having scoped out the local area, chosen your property and made the purchase, the only things left for you to do are organise personal legal matters to get the ball rolling on your move to Spain from the UK.
Although up until recently the UK was part of the European Union and as such afforded our citizens free movement, since Brexit the rules have altered slightly so it is important that your move to Spain is legal. When moving to Spain from the UK you will now need to apply for a Visa or residency permit to allow you to live in Spain. Doing this will also allow you to access local healthcare if you should need it whilst living in Spain.
If you are of pensionable age, you will be able to arrange for your pension to be paid to you even if you are living overseas. This can be paid into a Spanish bank account to allow you to access your pension when moving to Spain from the UK.
Ready to Find a Spanish Property?
If you are ready to make the move from the UK to Spain, take a look at our wide range of Spanish properties to get started. Whether you are looking for a Spanish villa or new build apartments in Spain, we have the knowledge and the portfolio to find exactly what you are looking for. Take a look at our Spanish properties now or get in touch.
Whilst some of you might have the cash ready and waiting to purchase your dream Spanish home or investment villa, many people will need to consider expat mortgages and ways of financing property in Spain.
Whether you are looking for property to buy in Spain to live in permanently, purchasing a second Spanish holiday home or adding to a flourishing portfolio of buy-to-let properties, we are going to cover all bases for successfully getting a mortgage in Spain.
If you are undecided on approaching Spanish mortgage lenders or brokers in the UK who work with international mortgages, we would first like to inform you of a few benefits that come with choosing a Spanish mortgage broker for your overseas investment.
- The Banco de España (The Bank of Spain) authorises all Spanish lenders and the lenders also work subject to the bank’s supervision
- The connection with The Banco de España is an extra layer of security, firstly because they understand Spain, its finances and its economy, and they carry out due diligence on the property to see if it is worth purchasing
- Spanish mortgage rates are relatively low in comparison to many countries, even Spanish mortgages for non-residents have extremely reasonable rates
- Long-term and short-term loans can be agreed when getting a mortgage for a Spanish property
- Long-term agreements are ideal as expat buy to let mortgages or purchasing a holiday home, whereas short-term loans are beneficial if you are retiring or selling up in England and waiting for your sale to finalise and for a large lump sum to enter your bank
So, you have decided that you want a Spanish lender to act as your expat mortgage broker, but you should first make sure you meet the criteria and that you are eligible for a mortgage to buy abroad.
Each Spanish mortgage lender has different restrictions, requirements and regulations when vetting their clients, but here are some of the basic considerations that can indicate the likelihood of your acceptance:
- AFFORDABILITY – The most principal requirement is that you have ample income to keep up with monthly repayments. Spanish mortgage brokers calculate affordability based on NET INCOME only, typically only those shown on personal tax returns
- OUTGOINGS TO A MINIMUM 35% - A general rule of thumb for Spanish mortgage acceptance is that your monthly outgoings and loan or debt payments are kept to a minimum of 35% of your net income. This is to allow for the new monthly mortgage repayments and liabilities such as car finance, bank loans, credit cards, education fees, etc.
- GOOD PROFESSIONAL PROFILE – You will have a stable, secure career path and will have preferably been in the same job post for 6-12 months if any less you might have to make the lender aware of probationary periods
- GOOD CREDIT REPORT – What is deemed as an acceptable credit report to one bank may not be good enough for another, so it is best to check this with your specific lender. You can assume all banks will require a good credit score
Each bank will request different things from their clients, other popular influences on the likelihood of your mortgage acceptance include being from an OECD country, the property has a good resale value, you have a reliable set of guarantors and sufficient money in a savings account.
The value of mortgages granted to Spanish natives and the value of Spanish mortgages for non-residents do differ slightly. As an expat applying for a mortgage for an overseas property you must be ready to accept a slightly lesser loan, potentially at a higher interest rate.
Here are the basics of what you can expect to be granted and what to pay yourself as a British expatriate getting a mortgage in Spain:
- Non-residential lenders can expect to receive a loan of 70% of the property’s value
- You will need to invest 45% of your own money into the property after you include the costs associated with buying a property as a non-resident = 15% of the property value –(45% = 100% + 15% purchasing costs – 70% of the mortgage!)
You might be wondering what the required steps are to take when applying for a mortgage for a property abroad. Below are some of the specific actions you should take for those questioning how to get a mortgage for a Spanish property;
- Gather together the necessary documents for expat mortgages
As an expat aiming to be granted a Spanish mortgage, you will be required to present various documentation and paperwork in order to prove to the lender that you are a reliable and honourable recipient for a mortgage for a Spanish property. These required documents include:
– Your Passport or Proof of Identification
– Your NIE (Número de Identificación de Extranjero) aka. Foreign Resident’s Tax Number
– Contract of Employment with your Three Previous Payslips
– Overview of any Assets or Debts
– Sale Purchase Contract
– Land Registry Information of Current Property and its Mortgage
– Pensioners Must Prove Annual Income
- You receive an offer when the bank has pre-approval from the risk department
- After client confirmation, the bank opens an account and forwards account details
- You must send a property appraisal provision
- A formal property valuation will take place, the bank gets mortgage approval and you receive an official mortgage offer
- The bank will organise official completion with you or a legal representative in Spain
Prior to starting your property hunt, it is wise to get to grips with exactly how much you can afford, factoring in all of the necessary Spanish charges, taxes and extra fee’s. BBVA has formulated a Spanish mortgage calculator, so you know precisely how much it will cost you to finance a specific Spanish property.
Regardless of your budget, Mercer’s Spanish Property has a wide portfolio of Spanish properties to suit all tastes, requirements and wallets. For a selection of some of the finest Spanish properties on the market, browse our site now, or for more specific enquiries, you can call us on +44 (0) 845 0177 805.