Mortgage in spanish banks
There are no non-status/certification mortgage facilities available in Ibiza. All loans need to be supported by a minimum requirement of proof of income:
For a prospective purchaser applying for a mortgage who is employed by a company – copies of his/her most current three month’s pay slips are required, and the latest P60/Employer’s Reference accompanied by copies of the past six months Personal Bank Statements.
Requirement on application of a self-employed prospective – copies of his/her last three years Audited Accounts as well as copies of the past 12 months Business Data, and past six months Personal Bank Statements.
Important note – in Ibiza the Spanish Lenders will NOT take into consideration any proposed rental income from the property for mortgage purposes/repayments.
Your loan is based on your joint net “take home” pay and is calculated on an affordability basis. All your existing liabilities including any mortgage/rent payments, personal and bank loans and any maintenance (i.e.: Divorce) payments together with your proposed Spanish mortgage payments must not exceed 35% of your net monthly income.
Stage Payment Mortgage in Ibiza
If a property project is “green-fields” and is thus to be constructed requiring stage payments, it is a requirement that the land be purchased from ones own funds and also registered in ones own name (NOT the Builder/Developer’s). This is in order for the proposed Lender to obtain an essential legal charge and also to enable funds to be tangibly secured. Without this legal registration the Lender will not release any funds until the property is fully constructed and registered (which will mean upon completion of the total building works).
If the land purchase and registration is not possible (and other arrangements have been made), when the property is fully constructed the Builder/Developer’s must provide the Lender with the ‘Certificate of Final Construction’, thus enabling the Lender to take a charge against it and release the required amount of funds.
Please note that the laws in Ibiza change very often and although I have done all I can to correctly interpret the law the above is in no way full legal advice, but my interpretation of the law, and it does not substitute the legal report of a lawyer.