If you are buying a property that banks will class as a commercial premises (offices, shops, hotels, B&Bs etc.), we can offer mortgages to suit your purposes. The mortgages available are generally 50-60% of the purchase price (or valuation if lower) and conditions differ from those for residential properties.
Where a property is being bought by an actively trading company, or if the company will trade after the purchase, the banks will also treat it as a commercial mortgage.
Some banks will allow you to purchase through a newly formed Spanish limited company (Sociedad Limitada or “SL” company). If the company is set up as a shell company for the sole purpose of buying the property, meaning it will not actively trade after the purchase, it can be possible to secure mortgage terms that would apply for a residential mortgage. Due to the additional work involved in assessing companies, banks are more reluctant to approve this type of operation. Generally, they will only look at such cases when the companies or individual(s) behind them have strong profiles.
Exclusive mortgage conditions
With the volume of business we process in the Spain, we are able to negotiate the very best conditions with our banking partners; far better than those that may be available to our clients should they go to the banks directly. In fact, some of the terms we have recently negotiated for properties have been some of the best mortgage conditions we have ever seen!
You will benefit significantly by using our service and this is especially important in Spain right now, following the introduction of the new mortgage legislation whereby some banks are no longer offering certain fixed rate products to clients earning in currencies other than Euros. There are also wealth tax implications to consider which can be offset by having the correct finance in place.
Process for Commercial Mortgages
Once the mortgage is approved the process remains very local. We have local representatives and contacts in branches in different parts of Spain, who know the local circumstances inside out and have experience with commercial mortgages. We also work with local lawyers and valuation companies (all approved by the Bank of Spain) to ensure our clients receive the very best service all the way through to completion.
And finally, on completion day, a representative of the local bank branch will sign the mortgage on behalf of the bank and our clients can continue to manage their everyday banking requirements locally thereafter.
We look forward to sharing the experience with you and helping you to secure your commercial property