In light of the growing improvement of the real estate market thanks to the increase in consumption and the still very low prices of property in Spain, the Spanish banks have gone back to offering mortgages, especially to non-residents in Spain. These mortgages typically range from 50% to 60% (and more in some cases) of the purchase price.

Applying for a mortgage until now involved a formal application, a valuation of the property and submitting the documents required for the mortgage to be granted.

Such formalities were indispensable for the bank to study the possibility of granting the mortgage even the application was eventually turned down for whatever reason which, in addition to considerable inconvenience, caused the applicant to incur unnecessary expenses (such as the valuation costs, formal document issuance fees, etc).

Lizarza Abogados has been informed by a major Spanish bank about the undertaking of a preliminary study on the granting of mortgages by simply requesting information on the property to be purchased and financial details of the mortgage applicant, without having to provide valuations or legal documents at that moment. 

After such a preliminary study, the bank will say whether they consider that granting the requested mortgage is feasible – as well as the amount and conditions thereof – or whether they are unable to grant it. No costs will be incurred until that moment.   

Only if the bank considers that granting the mortgage is feasible and the non-resident applicant is in principle in agreement with the pre-estimated conditions will a formal study be undertaken on the granting of the mortgage, based on a valuation of the property by a company legally authorised to do so and an examination of the applicant’s economic capacity in light of the legal documents providing evidence of their personal and financial details.

Lizarza Abogados – Email: abogados@lizarza.com

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