What happens when the property is completed?

Retain Through To Legal Completion

This strategy is most suitable for investors interested in longer term Investment Return. Upon completion, the investor will retain the property, and to finalise the purchase will have to fund the balance of the off plan discounted purchase price. Most investors choose to do this by arranging their own mortgage which IP Spain are happy to assist with, or accepting the pre arranged mortgage offer that comes through the developers bankers. A very important fact to bear in mind is that the majority of Spanish Banks will be happy to lend up to 70% of their valuation of the current market value (which of course will be greater than your purchase price).

In other words you owe the developer £70,000 and the bank would be willing to lend £100,800. This would allow you take the full mortgage and have the property paid for and your deposit returned or you would have the choice of taking a smaller mortgage in order to pay the developer only. This decision will be influenced by the strategy that would be most suitable for you from the following options:-

Buy and Live
Keep the property for your own use safe in the knowledge that you have paid a heavily discounted price and that it will appreciate in value over time.

Use and Let
Keep the property for use as a holiday home by yourself and let the property at all other times during the year with the goal being for the rental income to cover the ownership costs i.e. mortgage payments.

Buy to Let
As the name implies the goal is for the property to be let for as much of the year as possible either as a long term lease or as holiday lets. Again the goal is for the rental income to cover or even exceed the mortgage payments.

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