What is the process when buying a property in Lanzarote?
Navigating the system of purchasing property in Lanzarote can be daunting, but it shouldn’t stop you pursuing your dream of owning a property in Lanzarote, whether it’s a holiday home, investment or future retirement pad.
As long as you know what to expect and have the right professionals to guide you through the process of buying property in Lanzarote, it really can be as easy and 1,2,3!
Check out our handy step-by-step guide to buying property in Lanzarote below to help steer you in the right direction. If you need an extra helping hand, we’re here to answer any questions on 01244 478 911 or firstname.lastname@example.org.
We can also connect you with useful contacts to help you buy a property in Lanzarote safely and efficiently, including an independent English-speaking Lanzarote lawyer, Spanish mortgage advisors, currency exchange specialists and more!
Step 1 – Contact property professionals who can assist with your property purchase in Lanzarote
It’s advisable to get organised and get contact details for property professionals – such as a Lanzarote lawyer, mortgage-broker and currency specialist – who can assist before ploughing ahead with arranging a viewing trip or buying a property.
If you intend to get a mortgage, you should speak to a mortgage-broker beforehand to ascertain how much you will be able to borrow. This will depend on your personal circumstances, including your income and existing financial obligations. In some circumstances it can be more cost-effective to refinance an existing property in your home country so it’s worth weighing up your options and getting the finances in place before you commit to a property purchase. Find out more in our Guide to getting a Spanish mortgage.
Likewise, a good lawyer in Lanzarote will be happy to answer any initial questions you may have and provide transparent costs information regarding the fees involved to help you prepare for a property purchase. It will be useful to have their contact details to hand for when you find your dream property in Lanzarote so you can get in touch without delay.
If you do decide to go ahead and make an offer it’s also helpful to have a currency exchange account [link to currency page] set up in advance. It’s free to set up and only take a few minutes, but it can save you thousands!
Total Buying Abroad can provide details of a recommended an English-speaking Lanzarote lawyer, mortgage advisors who can assist with mortgages in Lanzarote and currency exchange specialists who can help you get the most euros for your money. Contact us for no-obligation information on 01244 478 911 or email@example.com.
Step 2 – Get an NIE number
Before you can proceed with a property purchase in Lanzarote you’ll need to get a NIE Number – a foreigner’s identity number – you will need this for a number of processes in Lanzarote including purchasing a property. You can obtain this yourself in person, via the embassy or your Spanish lawyer can assist.
If you’re 100 per cent certain that you’re going to buy a property in Lanzarote or elsewhere in Spain, it can be helpful to ensure you obtain your NIE number early in the process to make sure everything is in place in advance of a viewing trip as it can help with your position as a buyer. For instance, if a property is in high demand, if you already have your NIE number you can proceed with a purchase faster than someone who hasn’t got their NIE number, thus less likely to miss out on the perfect property when you find it!
Step 3 – Arrange a viewing trip
Once you have some useful contacts in place you can think about arranging a viewing trip. We always recommend arranging property viewings in advance if possible.
You should also consider the timing of your trip carefully. While it may be convenient for you to book a long-weekend away, remember that some properties may not be available for weekend viewings. Likewise, some companies wind down throughout the month of August, so it may be more difficult to arrange viewings at this time. Read our Top tips when organising a viewing trip.
Step 4 – Find your dream property in Lanzarote and make an offer
Once you’ve found the perfect property in Lanzarote it’s time to make an offer. Some people like to make an offer there and then, others prefer to return to their home country to give themselves some thinking time before making the leap. The choice is yours and will largely depend on how in demand the property is and how certain you are.
Just remember that it’s easy to get swept away in the romanticism of it all, and property purchases should be made with the head not the heart. So, take a step back, think it through carefully before making an offer. And above all DO NOT sign anything or pay any deposits before seeking legal advice from a lawyer who specialises in property purchases in Lanzarote.
Step 5 – The legal process of buying property in Lanzarote
The property buying process in Lanzarote usually takes anywhere between 6 and 12 weeks, though of course it can take longer if there are complications. There are four stages to the legal process when buying a property in Lanzarote: signing a reservation contract; purchase contract; contract of sale and registration of ownership.
- Reservation contract – although common in Lanzarote, it’s not mandatory to sign a reservation contract. Fees are usually between €3,000 and €6,000. We strongly advise that you get in touch with lawyer in Lanzarote before signing a reservation contract or paying any money.
- Purchase contract – Signing a purchase contract, or preliminary contract (contrato privado de compravento), is the equivalent of an exchange of contracts in the UK and is legally binding. Typically, at this stage you will be required to pay a 10 per cent deposit.
- Contract of sale – The next stage is the contract of sale (escritura de compravento). You (or your lawyer in Lanzarote) will need to sign the contract of sale in front of the Spanish notary (Notaria Publica) at their offices.
- Registration of ownership – Once the contract of sale has been signed by all relevant parties you must then formally register the property in your name.
It’s also advisable to get a survey carried out before committing to a property purchase and signing over your savings!
Step 6 – Relax, enjoy and soak up the sun!
Aside from the boring but essential tasks associated with buying a property like setting up utilities (which your lawyer can usually assist with) and unloading boxes, you can now sit back and enjoy all the benefits of being a home-owner in Lanzarote…sun, sea, sangria and much more!
For a for detailed overview of the Spanish buying process read our article: The property buying process in Spain.
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Article published: July 15, 2019