Building your own dream home in Spain
- By admin
- November 25, 2020
Here at Verdin Property, we like to keep an eye on trends in the property market. One that is regularly at the forefront of our clients’ enquiries is ‘should I buy a plot of land and build my own house?’ Whilst for us personally it seems like a lot of hassle (!), we always keep an open mind, so today we’re going to talk you through the process.
Especially this year, going down in history thanks to the Covid-19 pandemic, buyers both throughout Spain and abroad have realized that they simply do not have enough space in their current properties and it no longer meets their needs. Above all else, an outdoor space where families can spread out more is now THE must have. Enter the plot and new build house, fully customizable to your own specifications.
So, is it possible to build your own home in Spain? We don’t recommend trying it yourself, but planning your new home, designing everything and finding the right people to build it is certainly a viable option, and a growing number of Spanish and other international buyers have decided to do just this. As for finding the people, Verdin Property will be able to point you in the best directions!
The first thing to do is lots of research and get searching for the perfect land plot to build you new home. However, you need to be able to differentiate between certain types of land, as you won’t be able to build on all types and this is where things could potentially get messy.
When searching for land in Spain, you will often come across the term ‘suelo rustico‘ – this type of land normally does NOT have the necessary infrastructure, ie. electricity and water supplies, and is not suitable for building. If you see ‘suelo urbano‘ or ‘urbanizable‘, this is perfect. This type of land already has basic provisions in place, and although you do need permission from the local town hall (‘ayuntamiento‘ in Spanish) this land should appear in the urban plan as being approved for construction, however do always recommend double and triple checking.
In addition to the land, it is also necessary to pay attention to other parameters such as the percentage of occupation (basically how much of the land you can build on) and also the build-ability (the maximum m2 that the house can occupy). Please note the maximum square meterage often does not include basements but again, it’s always worth double checking.
Once you have selected a land plot to build on, it is essential, to seek professional advice. We always advise our clients to consult with an architect to examine your chosen plot, in order to assess whether it has adequate potential. That is to say, whether it has easy access, a good orientation (north or east are generally not liked) and perhaps most importantly, check the topography and dimensions, so building is quicker, easy and also permissible.
They will also be able to provide a general estimate of the building costs, which is also mightily important as overspending can often lead to overbuilding or causing your property to, in simple terms, not be worth the money.
It is also advisable to have the services of a good lawyer available. They will give advice at all stages of the process and indicate the steps to be taken at each moment.
Here at Verdin Property, we also recommend asking your lawyer to obtain a copy of the ‘nota simple’. It is important to know if the land has any previous charges or debts. The nota simple is basically a short legal report of the property obtained only from the Land Registry.
Also advisable is to contact the Cadastre who can provide a descriptive and graphic cadastral certification, in order to check that the data in both registers coincide. Finally, it is necessary to go to the corresponding town hall to consult the current town planning regulations as overbuilding your property is the last thing you want to do!
Should you require financing, normally in Spain it is possible to apply for a self-build mortgage which, as its name suggests, will serve to finance the construction of the home, as banks, in general, will not approve a mortgage for a plot purchase.
This type of mortgage is normally divided into three sections: the initial phase, after approval, so that work can begin, the certification phase, as construction continues, and the completion phase, once the property is finished. In general, these operations cover 80% of the budget if it is a first home and its term does not usually exceed 30 years of repayment – specified by Solvia.
*Please note however that for the entity to grant this type of mortgage, it is necessary to present the certificate of ownership of the land, the construction license, the planned project (subject to approval), the execution budget and the energy efficiency certificate, in addition to the fact that the client must comply with the solvency requirements to obtain the loan.*
Verdin Property also stress that patience is key, given that the time needed to complete a self-build project in Spain is usually about two years. In order to avoid it being prolonged and costs skyrocketing, it essential to carry out “a detailed planning of the budget and timescale, as well as a studied coordination of the professionals (architect, construction team…) involved in each of the stages”.
So there you have it! A guide to building your own dream home in Spain. If we haven’t put you off… please do not hesitate to contact us to start your property search, whether it be for a self-build property or a hassle free resale. Remember, we don’t just sell homes, we sell lifestyles!