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January 18th - January 31st 2017
13
Spain Property Guides
January 18th - January 31st 2017
Don’t get caught out when buying in Spain
Issue 12
Removing the floor
A VICTORY for mortgage owners has been awarded by the European Court of Justice. The court has ruled that two million mortgage holders in Spain are entitled to additional refunds from the banks because they paid too much interest. It came due to the so-called ‘floor clauses’ that saw most Spanish banks fail to lower their interest rates to borrowers to match the base rate set by the European Central Bank. The court ruled that it was unfair and that repayments should cover the entire life of the mortgage during the time that interest rates were low and continue to be. When the central bank base rate was lowered to stimulate the eurozone economy some years ago, mortgage repayments should have tracked it to 1.5% to 2%, however many borrowers continued to pay 3.5% and more. The surprise ruling is final and cannot be appealed. Around two million borrowers should now be set to receive repayments, estimated to be worth billions of euros.
G Little slice of home BRITISH expats are on a buy-to-let spree in London and the south east of England. According to mortgage lender Skipton International there has been a significant rise in expat investment over recent years. New figures reveal 40% of expats’ buyto-lets are in the UK capital, while 25% are in the pricey south east. “Prices in London have increased significantly in the past few years, meaning that capital gains have been very attractive for investors,” said Skipton mortgage director Nigel Pascoe. “Expats have many reasons for investing and long term investment is usually the most important.” The trend has occurred as it has become easier to secure lending for expats, who previously struggled with credit checks and recent credit history. Some 35% of expats cited long term investment as their main reason for buying, while another 19% said it was part of their pension plan.
ET your hands on one of the first new properties of the year - right on the beach! This stunning contemporary villa with wonderful sea views and heated infinity pool has gone on the market this week. Just a few steps from one of Marbella’s loveliest stretches of sand, the four bedroom home with a gym and cinema could be yours for a cool €7.9m. The chic new addition to Bahia Marbella, just east of the town, includes the latest technology, with a preinstalled sound system, solar panels and underfloor heating. The property, marketed by Panorama Properties, sits in a gated community with 24-hour security.
New Year, new house? NEW PROPERTY: Stunning Bahia villa on the shores of Marbella
And the King of all renovation jobs
MALAGA province’s second biggest castle will finally be renovated after a €2 million project failed to take off almost a decade ago. La Estrella castle is spread over 25,000 square metres and is currently being used during the filming of ‘Douglas, el Guardian de Historia’ – a Spanish TV series which features the battle of Teba, where the castle lies. A project to give the structure a face lift was abandoned in 2008 at the onset of the global financial crisis. It now back on, and will improve accessibility, undertake archeological investigation, consolidate the walls and generally improve the existing structure.