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-   -   Would You Get A Mortgage On A Property With Servidumbre Access? (https://www.expatforum.com/expats/spain-expat-forum-expats-living-spain/714610-would-you-get-mortgage-property-servidumbre-access.html)

StevejR1 2nd April 2015 10:43 PM

Would You Get A Mortgage On A Property With Servidumbre Access?
 
Well the legal roundabout carries on with the house we have an offer on, and we have been giving serious thoughts to the implications of the situation.

We are in the process of changing aborgados,to try and get some clarity, but one thing that will not change is the access to the property via a Servidumbre (legal access) track across the neighbouring farmer's land.
What we are wondering, or worrying about for the future, is, is it possible...assuming all the other certificates/licences are in order...to get a mortgage from a Spanish bank if the property has access via a Servidumbre?

Apart from a few other things that are still unresolved, we are apprehensive that buying a property that can't be bought by anyone else needing a mortgage, will seriously limit the appeal of the house. We don't want to sell in the foreseeable future, but looking for cash buyers if values rise in the future years might become a major problem. So does anyone know if this would be an issue with applying for a mortgage at the moment (..I realise things might change either way).

Also, it is generally accepted that if you can get a mortgage on a property it must be fully legal, as the banks do very thorough checks. I was wondering how long it takes to arrange a mortgage on a property? We are thinking of applying for the minimum amount available for a mortgage, over the shortest period, on this property, or any subsequent one, just to prove legality.

Any views?

Many thanks.

Pesky Wesky 3rd April 2015 08:01 AM

Quote:

Originally Posted by StevejR1 (Post 6827954)
Well the legal roundabout carries on with the house we have an offer on, and we have been giving serious thoughts to the implications of the situation.

We are in the process of changing aborgados,to try and get some clarity, but one thing that will not change is the access to the property via a Servidumbre (legal access) track across the neighbouring farmer's land.
What we are wondering, or worrying about for the future, is, is it possible...assuming all the other certificates/licences are in order...to get a mortgage from a Spanish bank if the property has access via a Servidumbre?

Apart from a few other things that are still unresolved, we are apprehensive that buying a property that can't be bought by anyone else needing a mortgage, will seriously limit the appeal of the house. We don't want to sell in the foreseeable future, but looking for cash buyers if values rise in the future years might become a major problem. So does anyone know if this would be an issue with applying for a mortgage at the moment (..I realise things might change either way).

Also, it is generally accepted that if you can get a mortgage on a property it must be fully legal, as the banks do very thorough checks. I was wondering how long it takes to arrange a mortgage on a property? We are thinking of applying for the minimum amount available for a mortgage, over the shortest period, on this property, or any subsequent one, just to prove legality.

Any views?

Many thanks.

People on here can give their opinions, but personally I think the only way you're going to get the answers to your questions is by going to banks and asking them.

Pazcat 3rd April 2015 08:19 AM

Banks aren't all that keen to give a mortgage on a rustic land property, they wouldn't give one to us anyway so i have no idea what the access may do to it.
Things may change in the future maybe.

snikpoh 3rd April 2015 08:23 AM

Quote:

Originally Posted by StevejR1 (Post 6827954)

Also, it is generally accepted that if you can get a mortgage on a property it must be fully legal, as the banks do very thorough checks. I was wondering how long it takes to arrange a mortgage on a property? We are thinking of applying for the minimum amount available for a mortgage, over the shortest period, on this property, or any subsequent one, just to prove legality.

Any views?

Many thanks.

It's been well documented in the press that Banks do NOT do thorough checks and still lend on illegal properties.

So, beware, this is not a guarantee that a property is legal.

StevejR1 3rd April 2015 09:57 AM

Quote:

Originally Posted by snikpoh (Post 6829818)
It's been well documented in the press that Banks do NOT do thorough checks and still lend on illegal properties.

So, beware, this is not a guarantee that a property is legal.

Really, perhaps things have moved on, but I thought the banks did rigorous checks as they were so apprehensive to lend money generally that they made sure the ones they did lend on had no issues whatsoever?

StevejR1 3rd April 2015 09:59 AM

Quote:

Originally Posted by Pesky Wesky (Post 6829682)
People on here can give their opinions, but personally I think the only way you're going to get the answers to your questions is by going to banks and asking them.

We are going to down that route into looking into it I think. I was also wondering if anyone knew how long, roughly, an application took, from start to finish? I'm thinking quite a long period?

Pazcat 3rd April 2015 10:48 AM

It needn't be all that long, if they initially approve you for a mortgage then you need to present them with the property.
Our bank asks for the nota simple so they can do some basic checks with that and then the cadastral, after lets say at it's worst 2 weeks(often closer to 1) they will have valued the property within their system and then can give you the exact terms they are prepared to pay and then file it for approval if you agree which can be another week or two.
After that if all is well then they ask for a weeks notice before signing at the notary.

If everything is in order then it shouldn't take longer than a month.

However, if there is some issue with paperwork that is lacking or things don't match on the nota simple/cadastral then they might insist on doing their own valuation which can add another 2-3 weeks whilst they faff around with that.
If things are not in place they simply wont give a mortgage on the property, if it's got an F'dO or doesn't match their valuation. They don't even want to look at a rustic property.

So it really is a case by case basis and it is dependent on the bank as well, I can only speak for one bank and the other few we spoke too and ruled out.
All you can do is sit down with a few banks in the area and see what they say because I have no doubt that each bank will do things differently.

Right now we have the bank waiting, they are ready to go as are we but the sellers have to get their affairs in order first and that is still the longest part.

StevejR1 3rd April 2015 11:04 AM

Quote:

Originally Posted by Pazcat (Post 6830610)
It needn't be all that long, if they initially approve you for a mortgage then you need to present them with the property.
Our bank asks for the nota simple so they can do some basic checks with that and then the cadastral, after lets say at it's worst 2 weeks(often closer to 1) they will have valued the property within their system and then can give you the exact terms they are prepared to pay and then file it for approval if you agree which can be another week or two.
After that if all is well then they ask for a weeks notice before signing at the notary.

If everything is in order then it shouldn't take longer than a month.

However, if there is some issue with paperwork that is lacking or things don't match on the nota simple/cadastral then they might insist on doing their own valuation which can add another 2-3 weeks whilst they faff around with that.
If things are not in place they simply wont give a mortgage on the property, if it's got an F'dO or doesn't match their valuation. They don't even want to look at a rustic property.

So it really is a case by case basis and it is dependent on the bank as well, I can only speak for one bank and the other few we spoke too and ruled out.
All you can do is sit down with a few banks in the area and see what they say because I have no doubt that each bank will do things differently.

Right now we have the bank waiting, they are ready to go as are we but the sellers have to get their affairs in order first and that is still the longest part.

Thank you for that Pazcat, that was very helpful :)

I think from what you're saying the property will be un-mortgageable. It is a rustic property, I 'think' it has an FdO on it at present (..I'm led to believe it has, but trying to get to the bottom of it as the aborgado has not been very clear at all). So I'm assuming the Servidumbre would not be the main issue.

At the moment we are waiting on the seller to obtain the necessary paperwork...or what he deems is needed, maybe the new aborgado may disagree?...that has taken nearly 8 weeks so far!!! Why that wasn't done prior to the offer I don't know?!?!...well I do, spending out the money!!!!
I am waiting for the reaction to changing aborgados...as in 'it will cause a delay!', because that may be the last straw, as we've been very patient waiting, and it'll take as long as it takes for me to be sure, I'm not going to be pressurised.

Many thanks for the information anyway, I will make some enquiries :)

baldilocks 3rd April 2015 11:55 AM

41 Attachment(s)
Quote:

Originally Posted by StevejR1 (Post 6827954)
Well the legal roundabout carries on with the house we have an offer on, and we have been giving serious thoughts to the implications of the situation.

We are in the process of changing aborgados,to try and get some clarity, but one thing that will not change is the access to the property via a Servidumbre (legal access) track across the neighbouring farmer's land.
What we are wondering, or worrying about for the future, is, is it possible...assuming all the other certificates/licences are in order...to get a mortgage from a Spanish bank if the property has access via a Servidumbre?

Apart from a few other things that are still unresolved, we are apprehensive that buying a property that can't be bought by anyone else needing a mortgage, will seriously limit the appeal of the house. We don't want to sell in the foreseeable future, but looking for cash buyers if values rise in the future years might become a major problem. So does anyone know if this would be an issue with applying for a mortgage at the moment (..I realise things might change either way).

Also, it is generally accepted that if you can get a mortgage on a property it must be fully legal, as the banks do very thorough checks. I was wondering how long it takes to arrange a mortgage on a property? We are thinking of applying for the minimum amount available for a mortgage, over the shortest period, on this property, or any subsequent one, just to prove legality.

Any views?

Many thanks.

You really do try to find the most awkward properties. If you don't have your own access from a public road, you have the potential for problems. There are people we know not far from here who are in a similar situation - they, too, do not have their own access and have been in the position where they could not get to their place because the person, whose land they have to cross, blocked their access. I couldn't swear to it but, tied in with other things, it sounded as though it was an attempt to drive them out so that they gave away the property for peanuts and the bar steward could get the extra land and combine it with his own.

There are currently injunctions in force but it is still very tense, in that they dare not both be away from their property. There have also been cases, where boundaries are marked only in relation to particular stones and the stones move mysteriously of 'their own accord.'

gus-lopez 3rd April 2015 12:18 PM

Quote:

Originally Posted by StevejR1 (Post 6830258)
Really, perhaps things have moved on, but I thought the banks did rigorous checks as they were so apprehensive to lend money generally that they made sure the ones they did lend on had no issues whatsoever?

No, they'll even sell you a totally illegal repo off their own books. & give you a mortgage on it.:(


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