Purchase house central Malaga

@gyoung5718 I purchased a house in Mallorca Spain after a full survey, a few years later I went to release equity and the second survey showed the top floor was built without permissions, so the value of my property was reduced on a % basis for the top floor, it wasn't a problem then but when I came to resell it really was.

So depending on how much if anything you need to borrow to buy, that's the only real impact, there is also a rule that after so many years 15-20 you won't have to knock it down and it can even become a legal part of your escrituro (title deed)

Hope this helps

Kevin

Thank you for explaining your experience.

Good to be aware 15-20year rule, could be avenue for solicitor to move forward with purchase.

When you come to resell, could you explain more concerning issues.

Additionally prospective buyers, will they have difficult finding a mortgage because of the issue with top floor not approved?

You should check with local solicitor. The council can ask to demolish top floor but not common. It may be possible to legalize it but you will need help and it is risky. Lowe r the prize

Thank you Maria, yes have a solicitor looking into this. They're have said it is not uncommon for this to occur when purchasing property.

Will be interesting when they get back after thier investigation and speaking with vendors solicitors.

Have just paid reservation so at early stages of purchase process.

Thanks again for advice.

@gyoung5718

You can go both ways. On the one hand, it's probably not a huge problem, as it's old enough that you won't be required to pull it down, and you probably don't intend to sell anytime soon.

But, on the other hand, if you were buying in the UK, and the owner said he'd added a floor without planning permission, you'd probably run a mile. :-)

Personally, I kinda think that life is short, and there are enough problems without unnecessarily adding to them. Moving to a new country is a big enough adventure on its own, without the extra adventure of navigating retroactive permissions with the land office. :-) If the Spanish owners didn't do it in the last 20 years, I'm inclined to think that this tells us that it is not easy/quick/cheap (and that he certainly won't try right now, when you nicely ask him to).

Central Malaga sounds kinda pricey, so I'm sure there are lots of properties in Spain for your budget, and it might be nice to have one that you can resell without any problems. :-)

But, sure, if you've viewed a thousand properties already, and this is the only one in all of Spain that makes your partner happy, then you might feel a bit of aggravation is justified. Especially if it's at a bargain price too.

I think Spanish reservation deposits are non-refundable, so you are kinda committed here. I would suggest you (or your attorney) negotiate for the return of your deposit, on the basis that you have discovered a "legal issue" of a floor built without the appropriate permissions/registrations. Or (if you want to proceed anyway) you would consider proceeding, but only if the price is reduced by x euros, to compensate for this issue.

As you've got an attorney, and you're paying for his professional expertise, he should be the one giving the advice, not us armchair quarterbacks. Saying that some properties have this problem is not a useful professional reply. We already know that. Just as we know that after x years, it's probably not going to need to be pulled down. Perhaps many Spanish don't do the legal survey that discovers this problem, and they proceed with purchase because they don't know? How many of his clients proceed if they discover this legal issue? If (hypothetically) you were getting a mortgage for this purchase, would the bank proceed with this legal issue? If banks don't care, I'd feel a lot better.

Thanks for in-depth reply.

Would think at this stage would go with proceeding and reducing the amount required for settlement for solicitor to apply for planning permission for unregistered parts of building after we have become owners.

If this is as common in Spain as I'm lead to believe must be straight forward for solicitors and must have accurate cost for work.

Appreciate your time for replying.

Have a good Monday.

@gyoung5718 When you come to resell if any of the property is still technically "illegal" it wouldn't be considered in any bank valuations for example if your property is 300m2 and 100m2 is illegal, the bank will only value the 200m2 and this would impact the amount of mortgage offer to any new buyer, if your buyer is cash its no problem.

Thanks for clarification.

You have been great help.

Can i ask, as you have legal knowledge, what is the difference between registro and catastro?

Does house plans need to be registered with both bodies?

@gyoung5718 have you already bought that house? In order to carry out a construction or extension on a house, the law requires the prior concession of licences. Once these have been obtained, the construction can be carried out and registered in the Land Registry. Otherwise, the construction cannot be carried out.

If you need any further advice or help in finding an apartment in Malaga or Marbella, I will be happy to help you!

Aida

@gyoung5718 the difference between registro and catastro: The Land Registry is a voluntary register where the owner and encumbrances of a property are recorded; whereas the Catastro is a compulsory register that geographically locates the properties for the purpose of taxation.

Thank you Aida law for your expert definition Registro and Castastro.

At early stage purchasing 1936 terraced house with rear extension and two floors on this rear extension.

Top floor isn't registered with Castastro.

What are your experience with this, as have been lead to believe rather common unregistered parts of building.

Can't really say with confidence when extension and two floors work carried out, but from outside looks as rather long time ago (15-20years with a guess).

Also if registered with Castastro is it automatically registered with land registry office?

Thanks again

@gyoung5718 Hello. My advise is not to sign any purchase before you consult a good lawyer, and/or other good expert. Without reading documentation is difficult to advise. ***********

Thanks for advice.

It is not only the land registry and the catastro, you also need to have all permits from the city council. If it hasn't been legalized yet, that's probably because it is not possible. In that case you won't be able to get any permits for any refurbishments, and you may have other issues in the future in case the local government decides to go stricter on illegal buildings.

You should definitely check with an architect, to make sure at least that all the ilegalities have prescribed and cannot be demolished anymore.

If this is the property that you claimed on another thread that you were purchasing for 200k, there is definitely something strange about it as that price sounds way below the market in Malaga.

Interesting reading your email, have a very good solicitor covering the legal side of purchase which gives a person from UK peace of mind.

Looked at number properties over many months, all from idealista in this price range.

Property does need renovation as been empty for number years, but have taken this extra expenditure into total cost willing to outlay.

Just to highlight to anyone reading this, find a solicitor you trust to work on your behalf as is a journey purchasing property in Spain, specially with the technical language hurdles and famous Spanish bureaucracy.

Additionally need to give yourself time, plenty of time which if you are impatient person like myself isn't easy.

First cold beer after walk though door as the owner should make it all worthwhile.

Upward's and onwards as they say, only on this planet for short time.