In the Spanish coastal provinces, there is a lot on sale right now. New villas and apartments on the Costa del Sol are sometimes offered at knock-down prices. Choices galore. But in the Spanish countryside, the situation is different. Foreigners in particular have recently become increasingly interested in authentic and inexpensive homes. People are particularly interested in renovation properties. However, these types of homes for sale, depending on their condition, are harder to find than new homes. And a Spanish real estate agent is not so keen on renovation properties either. After all, he has to put in a lot of time. He has to check if the seller is really the owner, he has to check if there are any debts on the property. So no quick sale. New construction is easier for him. So if you are planning to buy a rural vacation home to renovate, you need to be patient and hire a motivated real estate agent.
Is it wise to renovate an old house ?
Renovation costs can be quite high. Many of these types of houses do not yet have plumbing, water and light or a telephone connection. This was often a reason for the original occupants to leave the home. You have to wonder how much it will actually cost to modernize such a house. And if the cottage is very remote, it remains to be seen whether it can be connected to water and light. And how much time will the renovation take, how long will you have to wait before you can move into the house?
If you have hardly any experience in renovating yourself, then the dream house that looked like a bargain before can become quite a burden. Both financially and spiritually. After the purchase, the real work begins. You need to hire an architect and a contractor. You have to arrange all kinds of permits. Time, patience, perseverance are required. And money. You should keep in mind that the cost of such a renovation project averages 30-35% of the purchase price. People experienced in renovating recommend setting aside another 15% of the purchase price for setbacks.
What precautions should you take?
Before you begin, you should have an architectural survey done to determine if it is still worthwhile to renovate the building. Maybe the house is so deteriorated that it’s better to have it torn down. If this is the case then you should check with the municipality in advance to see if you can change things when you rebuild. Find out well in advance what is and is not allowed.
The title deeds to a rural home can be a big problem. At worst, they’re not even there. It’s better to stop buying then. There are then too many risks involved. Indeed, there may be many legitimate claims that have never been recorded in an official proof of ownership. The judge must then rule on this. This is a so-called expediente de dominio. Such a procedure can take up to 2 years. Just don’t get started is the advice.
You may also end up in a 205 procedure. This means that the official ownership papers are missing but the owner can prove that he is the owner. Although the house is then put in your name, with the caveat that others have one year to still claim the property. If no one asserts their rights, you will become the legal owner after one year.
It happens that the area of the plot does not match the statement in the title deed. This can usually be resolved privately prior to the sale. But resolve it before you buy the house. After the sale, it’s your problem. It’s no fun to have an immediate conflict with your neighbors over the property line. And if there is an orchard or olive trees on the plot, it is useful to know whether you are also entitled to the harvest. And do you have rights to the well or to the water on your property? Does a right of way apply? All things you need to figure out in advance. You should also find out if there are plans to build roads in the area. Or water reservoirs, irrigation canals, factories or mines.
Another question is whether there are any debts on the house? In Spain, mortgage repayments and local taxes are linked to the property. As the new owner, you’ll be paying for the arrears.
Ask at City Hall about building codes. Are you allowed to change anything about the home when renovating? Can you build out the house ? Can you tear it down and replace it with new construction? Are there restrictions on size and height ? In a village or town, the regulations are often stricter than somewhere in the back country.
If you are going to renovate, you need to get one of the following permits from the town hall: a Licencia de Obras for a complete rebuild, a Permiso de Obra Menor for small renovations and a Permiso de Obra Nueva for a new extension, for example. It’s best to have this kind of thing figured out by a Dutch-speaking lawyer.