I’m Laura Leyshon and I’m Las Palmas’ resident property expert. I work for RE/MAX Cony Overseas, one of the city’s oldest estate agencies and the first RE/MAX office to open in Europe. Cony Overseas has an excellent local reputation and has helped hundreds of foreign buyers and sellers in Las Palmas and all over Gran […]
Buy a Gran Canaria property with a mortgage and the tasación or valuation is a vital step. It’s also one where working with an experienced local estate agent is very useful.
Getting your property valued in Gran Canaria
In Spain, valuations are done by tasadores; professional valuers working for companies recognised by the banks. Tinsa is one example.
Each bank has its own list of recognised companies and often its favourite valuers. Your mortgage bank can organise a valuer although you can choose any one from a recognised company.
The tasador values the property based on the area, property type, size and specifications, and also by comparing it to similar properties in the area. They also check to make sure the property is registered with the town hall and property registry, and has no unpaid charges or fines.
A tasación is therefore a very useful thing to have before you buy a property. It gives you lots of information and peace of mind. It only takes a few days and costs around 300 euros.
Most of the time tasaciones come out at about the market value and there is no problem.
When the valuation comes out too low, or too high
Sometimes the valuation comes out lower than the agreed price between buyer and seller.
Or, the tasador finds an unpaid fine or administrative problem. In these cases the bank asks for more capital from the buyer or can refuse the mortgage application.
A good estate agent can look at a tasación report and make sure that it is correct. For example, are the comparison properties used by the valuer actually similar enough to give an accurate valuation? And has the tasador included the entire property and taken into account detailed market price variations in the area? A small change makes a large difference to the final valuation and may save you a lot of capital.
I recently did this with a property valuation that came out lower than expected. When I checked the tasación’s comparable properties one was in an area with much lower prices per square metre. After consulting with the valuer and the bank about a change, a more accurate valuation was exactly in line with the market price.
Other times, the tasación value comes out higher than expected.
This seems like a good thing but has serious tax implications for the buyer. This is because the Spanish tax authorities check property sales (within 4 tax years of a purchase) and often ask for extra tax. Hacienda bases its tax demand on the the highest valuation in the paperwork.
If your tasación value comes out higher than the purchase price, you could get a tax bill for 6.5% of the difference years after the purchase.
Again, your estate agent can make sure that the valuation is in line with market value and politely suggest reasonable changes.
Working with a Gran Canaria estate agent
As a property buyer in Gran Canaria, using a quality estate agent to help you through the purchase process is highly advisable. Agents earn commission from the seller so a good agent doesn’t cost you anything. A good buying agent is very likely to save you money, time and hassle as they know the process and all the potential pitfalls.
As one of Las Palmas’ leading estate agents, I have helped dozens of Gran Canaria property buyers to find and buy a property here.
A new Spanish mortgage law comes into force on Monday 17 June 2019 and brings Spanish rules into line with EU consumer protection regulations.
It is expected to cause short delays to Gran Canaria mortgage applications and property purchases in July as banks, notaries, gestorias and estate agencies change their procedures to fit the new rules.
The main effects of the new Spanish mortgage law in Gran Canaria and across the Canary Islands are as follows… [Read more…]
Getting a local mortgage in Gran Canaria requires a fair bit of paperwork. However, interest rates are low and Spanish banks are lending with good conditions. Here’s my guide to getting a Gran Canaria mortgage in 2020. [Read more…]
The valuation (tasación) your bank makes when you apply for a mortgage has a significant effect on your Gran Canaria property purchase.
- If it’s too low, you don’t get the mortgage or have to provide more capital.
- If it’s too high, it can cost you a fortune in extra tax payments.
Here’s pretty much everything you need to know about getting a Gran Canaria mortgage in 2017…
Getting a Gran Canaria mortgage
Getting a mortgage in Gran Canaria involves lots of paperwork but isn’t a particularly complex procedure.
However, depending on the bank and on your circumstances, it can take anything between seven days and four months to go from application to approval.
Here are a couple of vital points to bear in mind… [Read more…]
The clausula suelo and how it affects Gran Canaria property owners
Spanish banks have long included a minimum interest rate clause in their mortgage contracts. It guaranteed their profits even during periods of low interest rates.
It also left lots of people paying high rates when the EURIBOR is at a record low.
In 2013, the Spanish Supreme Court said the clauses were illegal in these circumstances… [Read more…]