This very popular development was in construction when the recession hit and virtually stopped sales being made at this level. Out of 49 apartments and 3 villas for sale in the development, only 11 were sold at that time, but the developers wanted to honour their obligations to those buyers and continued with the construction, completing the development on time. Needless to say, this places a strain on the developers’ finances and they have had to consider the situation as it stands today. Although the property recession appears to be recovering, the recovery will not be fast enough to alleviate the developers’ ongoing costs of bank financing and therefore they have had to take innovative action to rectify the situation. Because of the official valuations and greatly reduced prices, the developers have been able to negotiate the most remarkable deal with their bank for offering mortgages to new buyers. We are not talking about some unknown bank, but one of the most recognisable banks in Spain. This remarkable mortgage offer is as follows.
• BBVA will finance 100% of the purchase price (subject to status).• Mortgage term up to 40 years (not past age 75). • Interest rate only Euribor + 0.5% reviewed on a yearly basis (no minimum interest rate).• Option for interest only payments for the first 3 years. • Option to defer up to 30% of the loan to the end of the mortgage term, payable as a final instalment.
• No set up fee. • No penalty for partial or total redemption of the mortgage.
• Client only needs to pay normal taxes and closing costs.• The mortgage bank will gift 2,000 Euros to-wards the clients’ closing costs. • From the first revision of interest rate on-wards the client can opt for a variable interest rate every six months or a fixed rate for three years. • After the second revision of the interest rate there is the possibility to reduce or extend the term of the mortgage by a maximum of 5 years. This may be repeated once (so the term could be 10 years shorter or longer).
• Once the interest only period has finished it is possible to defer a maximum of two monthly repayments in any one year. This can be done for up to a maximum of 10 payments. • Client can choose between normal variable monthly repayments or fixed amount repayments. • The bank will not obligate the client to take out credit or debit cards etc., they will only require the client to take out a home insurance, preferably through the bank. As an example: If somebody took a mortgage of 200,000 Euros to purchase a 2 bed apartment with the discount of 70,050 Euros, then the initial interest only repayment would be 301 Euros per month. After 3 years it would be 729 Euros per month assuming a 25 year mortgage, or 631 Euros per month for a 30 year mortgage. Therefore, for an approximate outlay of 13,000 Euros to cover Taxes, Notary, Registration, Lawyer and Bank Administration fees (after the 2,000 Euro gift), plus initial payments of 301 Euros per month, a purchaser could obtain the freehold title deeds to this very desirable apartment. The apartment could be rented to more than cover the mortgage repayments, plus there would be plenty of weeks for personal usage of the new owners and their family. So, for an outlay of around 25,000 Euros to cover closing costs plus the costs of furnishing, the balance of the cost of purchasing this apartment could be self funding and after a few years, taking into account the initial greatly reduced purchase price, the new owners should see very substantial equity value in the property that is well beyond normal expectations. There is no doubt that this is the best opportunity that we have ever come across for potential investors in property in Tenerife to take advantage of, but we expect this to be short lived. These properties are selling very quickly so you need to act fast.
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2 Bathrooms 
