Price Guide The benefits of buying in euros Legal representation

 

Finding your ideal property

Fill in this form now for a personal search based on your budget and criteria, you will be amazed how close to your 'perfect' property we can get. We will get back to you within 2 working days by either email or telephone call with our findings. Or to view available properties click here to go the search page. (The properties shown are just a selection of available properties in Tenerife, for a more detailed and specific search we recommend the personal search).

 

Price Guide

To give you an idea of prices, we have included the table below so you can see the difference between a particular type of property in a particular area. This table is not a definitive guide, just a general guide of prices of property in the named areas.
 

Property Type	Los Cristianos / Las Americas	Callao Salvaje / Playa Paraiso )	Adeje (inland property	El Medano (Coastal)	San Isidro (Inland)
Studio Apt (€)	65000-80000	55000 – 70000	50000 – 60000	50000 – 60000	40000 – 50000
1 bedroom apt.	100000 – 120000	90000 – 105000 Euros	85000 – 100000	85000 – 100000	60000 – 8000
2 Bedroom Apt	150000 – 200000	130000 – 160000	135000 – 150000	135000 – 150000	10000 – 12000
3 Bedroom Townhouse	N. A.	245,000 – 265,000	240,000 –280,000	190,000 – 230,000	40,000 – 165,000
4 Bedroom Villa	N. A.	350,000 – Upwards	350,000 – Upwards	N. A.	N. A.

OVERVIEW
Tenerife is the ideal place to buy a property whether you are looking to re-locate or just but a holiday home. There is nothing available in the UK that you cannot get in Tenerife, everything from Sky satellite TV to British supermarket products, add to that year round sunshine with very little rain it really is a dream location. If you are looking to re-locate your whole family and you are looking for work unemployment is nearly zero, so you should never have a problem finding work and generally language is not an obstacle.

Property Types
You have five basic types of property in Tenerife:

Apartments are usually in a purpose-built block, most commonly with two bedrooms and two bathrooms, perhaps with some communal gardens and facilities such as a swimming pool. Owners pay a community charge to cover maintenance fees for the block.

A Townhouse is usually a two or three-storey building which is part of a terrace, possibly with a small garden or outside space. They may be new-build townhouses, often painted a uniform white on a plot of land outside of a town. Or it might be an existing house in the centre of a town or village.

A Villa is a detached or semi-detached house, found both on the coast and inland, with a private garden and perhaps a swimming pool. It may also belong to a development that shares a pool and other facilities.

A Finca Rústicas a traditional rural house, possibly a former farmhouse, and often in need of renovation or conversion. It usually has some land or at least a garden.

Off Plan/New Development These are developments, which have yet to be built, or are in process, and in which buyers invest on the basis of seeing the plot of land and the architect’s plans. The price and all specifications are set before building commences. This takes 18-24 months on average. Such properties are usually apartments or bungalows in complexes with good-shared facilities such as large communal swimming pools, tennis courts and well-maintained gardens.

Coast versus country?
The area in which you want to live will to some extent determine the type of property you buy. If you want or need to live in a city, you will probably only have apartments at your disposal - unless you live in a modern urbanization in the suburbs. If you fancy living in a small village, your money will probably stretch to a townhouse or finca and you are unlikely to find apartments anyway. Coastal properties often come on modern estates or urbanisations, particularly if you are investing in an off-plan development.

If you do not intend to live in the property full-time, an apartment that you can lock up and leave - particularly on a managed estate that guarantees security and maintenance of the common areas - is a wise option. You may not feel so secure leaving a villa or finca empty for long periods.

Using Lifestyle Tenerife makes it easier than ever to buy a house in Tenerife. We help you avoid all the possible difficulties by guiding you through the process from start to finish, and even beyond with our follow-up service. Lifestyle Tenerife makes buying in Tenerife an enjoyable and stress-free experience.

The house-buying process in Tenerife usually takes far less time than it does in the UK and should follow clear-cut stages. But buying in a foreign country is always a minefield when you are new to the system and unprepared for the various hurdles along the way. Knowing what documents and information you need to gather and what to ask to whom throughout the process is also essential to ensure you get the best deal and a property without problems.
With our step-by-step guide, and the help of a good English-speaking lawyer, you will be prepared to buy any property in Spain.
 

Mortgage considerations
Once you have established your maximum budget - taking into account mortgage repayments and any possible rent for the property you can off set against them - you need to consider the administrative and legal costs of buying a property in Tenerife. These amount to 9-11% of the house price to cover all taxes, legal and notary fees.

When it comes to getting a mortgage, you don't necessarily have to deal in Euros just because you are in Tenerife - Many banks offer mortgages in euros or sterling. If you intend to rent out the property, you will receive Euros, so it makes sense to take out the mortgage in Euros so you can offset the rent against repayments.
It is also advisable to have the asset (the property) and the liability (the mortgage) in the same currency to avoid possible losses due to fluctuations in exchange rates when you come to sell. Sticking to one currency for both limits the element of uncertainty.

Repayment periods are lower: 10-15 years in Tenerife is traditional, although some banks will allow up to 35 years. Maximum loan-to-values are also lower, usually around 60-80%. Some Internet based lenders will offer 100% mortgages, although not for non-residents.

In theory, Spanish banks can grant a loan or mortgage to anyone - resident or not - on any property. In practice, Spanish banks have tightened up their lending criteria due to repayment problems in the 1990s. But there are more mortgages than ever currently in Spain - the average amount being for 100,000 euros - and interest rates are low, currently at around 3.1% for residents, 3.7% for non-residents.

Another way that many people have financed their new home in Tenerife is through equity release plans in the UK. Many people have significant value in their UK home and through simple restructuring can generate more funds than they at first thought. In order to fully understand these options speak to an independent financial advisor who can help you assess if equity release is for you.

NIE
This is a legal requirement for foreign nationals buying a property in Spain. All the documentation is in Spanish. We will therefore accompany you to the local police station to register your request for an NIE, and to translate for any questions or issues that may arise.
You can obtain the relevant form from your local Comisaria or Oficina de Extranjeros or from a gestor.
Then take the completed form and a photocopy, two passport photos and a letter proving why you need residency (e.g. a letter from an employer, a copy of your rental contract or mortgage agreement) to the Oficina de Extranjeros.
They will give you a return date to pick up your NIE.

 

The benefits of buying in Euros

Low interest rates at present in Spain mean that the money you borrow to finance property is relatively 'cheap' compared with the UK. European mortgages are calculated according to the Euribor base rate (the Euro Interbank Offered Rate, currently at 2.3% + around 1.25%).
UK mortgages are based on LIBOR (the London Interbank Offered Rate), which is significantly higher than EURIBOR at around 4.75% + 1.25% and likely to continue rising.

For investors, Spain's low interest rates are a key factor. In the UK, a property boom was triggered by low interest rates. As rates now increase, the market has slowed down. In Spain, however, the currently low interest rates are unlikely to rise significantly for the foreseeable future and so property finance will remain cheap, compared with the UK, and the Spanish property market is likely to continue to thrive.

An expanding EU, with a further 10 countries soon to become members, will most likely contribute to the success of the Spanish property market. As seen in Germany and Ireland, huge amounts of their outgoing currencies were invested in Spanish property and this was one major factor in fuelling the Spanish property boom. It is possible that the addition of new EU members will have a similar effect.

Once you have used the Lifestyle Tenerife website we will draw up a shortlist of properties, we then arrange a meeting with you where we will introduce you will to the most appropriate property agent/s by us at Lifestyle Tenerife.

Some of your selected properties, however, may be sold in the time in between first talking to you and actually visiting Tenerife to see the properties. On the other hand new properties will also be added to the Lifestyle Tenerife database, so you will see some properties on your visit to Tenerife that were not available when you began your search in the UK. Your Lifestyle Tenerife agent will base your updated shortlist on the most appropriate homes available when you visit.

The agent/s selected by Lifestyle Tenerife will be the most appropriate agent/s who deals with the area and properties you are interested in. They will guide you through this next part of the process. The agent will arrange a viewing of the properties. If you wish we will accompany you on your viewing and give you independent advice before during and after the tour.

If you require transport and accommodation, we can arrange this for you.
When visiting properties, bear in mind:
Use a Lifestyle Tenerife agent who knows the area well and can advise you intelligently on available properties. You can be confident that any Lifestyle Tenerife agent will adhere to a strict code of conduct.

• Most people find that they make a decision to buy on their first visit - so there is no reason to be frightened of making a commitment while you are there.
• Although in Tenerife it is not standard practice to get a survey to take out a mortgage, some people ask for one if they are buying an old property which is likely to built in a completely different way to those in the UK and may be susceptible to structural problems. Your Lifestyle Tenerife agent can recommend a builder or architect to carry out a UK-style survey for you. Lifestyle Tenerife agents are bound by the Code of Ethics to enlist only reputable parties.
• Think about whether the location is practical - do you need to be near public transport/schools/shops/medical services etc?
• Have your legal advisor check ownership of the property and any outstanding debts before you sign anything.
• Before you make an offer, it is wise to have visited as many similar properties as possible so you have a clear idea of the going rate.

To make an offer against a property you will need to put money against that offer - normally between 3,000 - 10,000 euros. The Agent makes this offer on your behalf and then the vendor will accept or decline this offer. The sum put forward becomes non-refundable when the vendor accepts the offer. If the vendor rejects the offer the buyer has the option of making another offer or receiving a full refund of the money.

Find out as much as possible about the vendor's reasons for selling. If they are moving for a job or have already bought another property, their urgency to sell may give you more scope for bargaining.
Equally, reveal little about your own circumstances to the vendor and their agent and don't be pressurised into agreeing a price.

What your offer should take into account
As in the UK, an offer is not considered a commitment until both sides agree on all aspects.
Make sure your offer includes the following contingencies:

• That the offer is subject to mortgage availability (if a mortgage is necessary).
• How much deposit you are prepared to pay.
• The payment terms (firstly the reservation is paid, then private purchase - 10% is most common, and the date the remaining balance is payable).
• What fixtures and fittings you consider to be included in the price (you should receive an inventory list).
• What other costs are involved in the transaction - costs such as lawyer fees, notary fees, taxes are on top of the quoted property price.

Before you commit to putting down any money in the non-refundable holding deposit, there are various checks you need to carry out on the property and the owner.

Your offer is based on the contingency that the property passes an inspection by professionals (e.g. a structural survey by an architect, if necessary). Then you can agree on the price and put down your deposit.
There are numerous aspects of the house-buying process which require a lawyer's expertise, from ensuring that the property is legitimate and free from debts or charges, to negotiating with the other side over trickier elements of the transaction, registering the title deeds and paying all relevant transfer taxes on your behalf.
You may also want to include a lawyer in the early stages of negotiating the price with the vendor, to make sure that the offer satisfies all legal requirements.

Your lawyer will also arrange for the transfer of utilities (water, electricity etc) into your name.

 

Legal Representation

Once we have found your ideal property in Tenerife, and you have made the decision to go ahead with the purchase, we will make introductions if you require to a law firm that will represent you in your purchase. We use English speaking Spanish lawyers, so you will be able to make direct contact yourself at any time.

Finding an English Speaking Lawyer
Spanish lawyers are well practised in helping English buyers to purchase property, and will speak English. Your Lifestyle Tenerife agent can arrange that you work with their recommended lawyer where you will be able to reap the benefits of the long-standing relationship they normally have.

Lawyer's Fees
Always obtain an estimate of costs in advance. For property conveyance, fees will be calculated as a percentage of the sum involved.

Protecting Your Investment
If you invest in Spanish property, it is advisable to draw up a Spanish will separate from your UK will, to cover your Spanish assets only.

The Spanish laws on inheritance are strict and complicated, so you will need expert advice on the taxes involved and the other financial implications of your purchase in the future. Once again, this is a matter for a good lawyer to advise you on. They can then draw up the document and register it in Madrid.
Fees should not be more than around 200 euros to draw up a will for a straightforward estate.
When you are ready to complete, you must sign the 'escritura pública', the official document which shows the title deeds and transfer of ownership. This is done in the presence of an official government representative known as a notario. He does not certify that the statements are true, merely that both parties have sworn to them.
At this stage you pay the remaining cost of the property and the vendor hands over the keys to your new property.

It is the buyer's responsibility to ensure all documentation is correctly registered in the land registry to avoid problems later when you come to sell. You can pay a local gestor (government official who deals with property contracts) or notary to deal with this if you prefer. This process can take up to two months.

With off-plan properties, the balance of the purchase price is paid on the day of completion. You, or more commonly your lawyer, will sign the title deeds for the property and the keys will be handed over. You should then allow 1-2 weeks before you can move in, in which time you can ask your lawyer to arrange for utility contracts with water and electricity companies.

A popular way for many people to buy in Spain is off-plan - that is, buying a new-build development rather than an existing freehold. It is an attractive proposition for people who want a brand new property that no one else has lived in and without the potential problems of older properties such as faulty plumbing and broken boilers.
The developers on new building projects are keen to sell as many properties as early as possible to improve cash flow so they sell 'off plan', showing potential buyers computer-simulated graphics of the finished project and the plot of land.

The buyer pays a portion - around 35% - of the purchase price as a deposit, then the remainder on completion. It is the buyer's responsibility to ensure that the work in question has been carried out to specification at each stage. Make sure that any design or building changes are agreed and included at the design stage to avoid additional costs. Then you just have to be patient for on average 18 months until the property is built.
When off-plan investment was at its most popular on in Tenerife a few years ago, there were numerous cases of unscrupulous developers compromising on building quality or selling properties on land without the relevant permission. Lifestyle Tenerife, which sets itself apart with its ethical practice, helps to protect the buyer against any such misconduct when investing in an off-plan property. Lifestyle Tenerife, Ensures that if you choose to invest in a new-build home, you do it safely with trusted developers and agents whom we have handpicked to work with and who have all the relevant licences to build and sell.

Once you've bought YOUR HOME, then it's time to deal with all the other elements involved in moving to Tenerife. Besides transporting some, or all, of your belongings from one country to the other and turning your new house into a comfortable home, there are all sorts of other considerations before you can put on the kettle (which, incidentally, are hard to track down in Spain) and put up your feet.