Unkategorisiert | C&D Solicitors

NIET-GETROUWDE LANGSTLEVENDE BETAALT HOGE ERFBELASTING

NON-MARRIED LONGEST LIVING PAYS HIGH INHERITANCE TAX

Geschrieben von admin am 29. Januar 2018. Veröffentlicht in Andalusian, costa del sol, english speaking solicitor, Inheritance Tax, lawyer, malaga, Unkategorisiert, wills.

THE CURRENT SITUATION OF INHERITANCE TAX

On 1 January 2018, a new reform of Inheritance Tax entered into force in Andalusia, the main change of which was to raise the tax-exempt amount to one million euros. This new reform changes the reform introduced a year ago, which we explained in our post of November 2016.

Which heirs would be exempt from Inheritance Tax?

Heirs that meet each one of the following requirements would be exempt:

For the heir to be included in groups I and II as established in the regulation governing this tax, the heir needs to be the spouse, child, grandchild or parent of the deceased
For the value of the estate to be inherited per heir does not exceed one million euros
For the pre-existing assets of the heir to be less than one million euros
For the heir to be a citizen of a Member State of the European Union or, if they are citizen from outside the European Union, both the deceased and the heir must reside in Andalusia

What happens with other family members who inherit?

All other heirs, such as siblings, nephews, nieces, uncles, aunts and cousins of the deceased are included in groups III and IV of the Inheritance Tax and will continue to pay the same amounts.

In other words, these heirs will pay inheritance tax from the first euro they inherit except for heirs in group III, who are able to deduct an amount of 7,993.46 euros. This means, for example, that if John leaves his nephew his Nerja property valued at 240,000 euros as inheritance, his nephew will have to pay about 63,000 euros in Inheritance Tax.

What happens if you inherit from your best friend?

You would be included in group IV of this regulation. This means that if John, instead of leaving the 240,000-euro property to his nephew leaves it to his best friend, he or she will have to pay about 80,000 euros in Inheritance Tax.

How are property values calculated for Inheritance Tax for non-married longest living?

Every year, the Regional Government of Andalusia publishes a regulation that establishes certain coefficients to update the values of urban properties located in Andalusia. These coefficients are applied to the cadastral value of the property; this you can find in your Property Tax receipts. The result of applying these coefficients to the cadastral value is what we call the minimum taxable value.

The regulation explained above deals with the minimum taxable value of urban property but, in the case of rural property, this isn´t applicable. Therefore it is necessary to obtain a valuation from the technicians of the Regional Government of Andalusia to calculate the minimum taxable value. However, the Regional Government of Andalusia in the province of Malaga uses the coefficients published every year by the College of Architects of Malaga to calculate the value of rural properties.

Regarding the means used by the administration to calculate the minimum taxable value of properties in Andalusia –as well as other Autonomous Communities–, there is much controversy in general and there is the possibility to challenge those values in the event that the person liable to pay the tax deems them excessive or not adjusted to reality. This topic is complex enough to be covered in a whole new article.

NON-MARRIED LONGEST LIVING OR UNREGISTERED COUPLES IN ANDALUSIA

Who are we talking about?

In the event that a couple is not married –either in their country of origin or in Spain–, if one of them dies and leaves the other member of the couple as an heir, for the purposes of Inheritance Tax this person would be considered to be in group IV. In other words, in this case the partner is considered to be just a friend putting the person in the group with the highest rate of Inheritance Tax.

What happens to common-law partners registerd in Andalucia?

In Andalusia, couples registered in the Registry of Common-Law Partners of Andalusia are equivalent to married couples for the purposes of Inheritance Tax, for which reason they would benefit from the deductions for spouses explained above.

What happens to common-law partners registered in another Member State of the European Union?

In this case, the Regional Government of Andalusia does not recognise such registration for the purpose of Inheritance Tax, for which reason those couples would pay tax as though they had received inheritance from a friend, leaving them in the group taxed at the highest rate.

If John leaves his partner Mark 50% of the property they both purchased in Almuñecar in 2005 and if the fiscal value of that 50% is 120,000 euros, Mark, the heir, would have to pay about 30,000 euros in Inheritance Tax for inheriting 50% of that property.

If John and Mark had been married or registered in the registry of common-law partners of Andalusia, Mark would not pay a single euro for inheriting 50% of the property from John.

What should be done in this case?

If you have property in Spain with your partner and you would like him or her to inherit your part and you are unmarried, we advise that you get married (either in Spain or in your country of origin) so that you can benefit from Inheritance Tax reductions. Those who don´t want to get married, can register themselves in the Registry of Common-Law Partners of Andalusia (Registro de Pareja de Hecho) and then the status would be equivalent to that of a married couple.

Property owners who are not citizens of a Member State of the European Union

In this case, heirs may not benefit from reductions for spouses, children, grandchildren and parents of the deceased, so they would pay Inheritance Tax in the event that they inherit. They can only avoid this if both the deceased and the heir are resident in Andalusia.

Author: Gustavo Calero Monereo, lawyer at C&D Solicitors Torrox (Málaga, Andalusia)

NIEUW REGISTER VERHUUR VAKANTIEWONINGEN ANDALUSIË

NEW REGISTRY HOLIDAY HOMES ANDALUSIA

Geschrieben von admin am 9. März 2016. Veröffentlicht in Unkategorisiert.

Registration tourist homes in Andalusia — New registry holiday homes Andalusia

A new decree (28/2012, of 2nd of February) about homes for tourist purposes in Andalusia, will enter into force on 12 May 2016. The aim of this decree is to regulate the large market of homes belonging to individuals and let by them as a holiday accommodation at different periods throughout the year.

These lettings, by days or weeks, as well as the use and terms of the lease, were not regulated until now. Therefore, the purpose of this Decree is to ensure that these homes meet a series of minimum requirements to be let, establishing the rights and obligations of both owners and customers and requiring the registration of the homes.

Clearly, this Decree has a significant impact in Andalusia, especially in Costa del Sol and Axarquía, for touristic cities like Granada, Malaga, Seville, and municipalities such as Nerja, Malaga, Torrox, Fuengirola, Marbella, Mijas, etc., which have many homes used for rentals of this type.

What is a home for tourist purposes?

These are homes located on residential land, offered in exchange for a price for the accommodation of people on a regular basis and with tourist purposes. Homes are understood to be let on a regular basis for tourist purposes if they are marketed or promoted in a tourist marketing channel. E.g.: Airbnb, Tripadvisor, Windu, property agencies, etc.

If you are the owner of a home on residential land in Andalusia and, during the year, you offer it for letting for days or weeks, this home will have tourist purposes. Therefore you must comply with the regulations of this Decree if you wish to continue to engage in this activity legally.

Which homes are excluded from this regulation?

Rural homes (houses in the country side) offered for holiday letting are not regulated by this decree. However, they do have the obligation of registering as a tourist home in the rural environment (Vivienda de Turismo en el Medio Rural). Therefore the owners of these homes must also register them before the Government of Andalusia but under a different regulation.

Homes let by the same person for two consecutive months or longer are not considered holiday homes and, therefore, do not need to register. This refers to homes let under a lease agreement for a period exceeding 2 months.

If, during the year, you let your home for over 2 months but you also let it for days or weeks, you will have to register it. Lettings exceeding 2 months and lettings for days or weeks are compatible in the same home.

An exemption to the application of this Decree is established when a single person has 3 or more homes for holiday lettings, within a radius of approximately 1 km. In this case, this Decree will not be applicable and regulations on tourist apartments will apply.

What does this Decree entail?

The obligation to register any home on urban land that the owner whishes to use for holiday letting before the Registry of Tourism in Andalusia. Once the home is registered, a registration number will be issued that must be displayed when offered for letting. The home only needs to be registered once and the registration number can be used for subsequent letting. The owner is the one legally responsible for registering the home and this home can´t be used for holiday letting unless it is registered before the Government of Andalusia by 12 May this year.

What are the registration requirements?

The home must be on residential (urban) land.
It must have a Licence of First Occupation. If it does not have the initial occupation permit, a certificate from the City Hall showing the location and use of the home should be accepted, but we are waiting for the written confirmation of the Junta of Andalusia.
Depending on the season, all accomadations need to be equipped with cooling and heating. In this case, the period for the owner lacking these installations is extended until 12 May 2017 and the property may be let during that period.
The home must have the essential furniture and furnishings required for the total amount of persons it is rented out to.
A first-aid kit is required.
It must have tourist information about the area, showing places to visit, restaurants, etc. A small tourist guide or advertisement from the corresponding tourist office can help you meet this requirement.
It must have complaint and claim forms available to customers in a visible place.
The home must be cleaned upon the check-in of new customers.
Linen and tableware appropriate for the number of people.
Contact telephone number to handle problems and emergencies.
Information and instructions about the appliances/equipment in the home must be available in a specific place.
Information must be provided about internal rules for the use of facilities, according to the regulations of the Residents‘ Association (community rules).
The maximum amount of people allowed in the property is 15.
In case you are renting out a room, instead of the entire house, the maximum amount of people allowed per room is 4.
All bedrooms must have external ventilation through windows.

What are the obligations for each customer?

A contract document must be signed by all parties, showing the details of the property, the owner, the number of days of stay and the price of accommodation, as well as the identification of people with a copy of their passports or residence cards. We are talking about a simple document of just 1 or 2 sheets, that the owner must keep for a period of 1 year.

Likewise, the owner must notify the Guardia Civil (police) of the occupation of the home with each new customer. The owner must provide a copy of the contract and the passports/identity cards of occupants.

What happens if I don’t register my home in this registry?

Inspection services may review the situation and begin penalty proceedings. Be careful, because the fine may range from 2,000 to 18,000 Euros.

Furthermore, you have the obligation to allow inspectors to enter the home when they visit it to verify that it meets the requirements for letting. If you do not allow inspectors to enter the home, you could be fined for very serious misconduct, with a large penalty.

What else does this Decree regulate?

Among other things, it regulates the rights of customers in cases where there is a conflict with the owner regarding the price of the letting, check-in and check-out times, advance payments or deposits for letting, etc. Ultimately, it regulates the terms for prices, booking, advance payments and cancellation, unless otherwise agreed in writing between the parties.

Taxes on income received

This registry is of an administrative nature, dependent on the Government of Andalusia and created to regulate the conditions of holiday lettings. It has nothing to do with the obligation to pay taxes on rental income. Likewise, if your home is registered in this Registry but you do not rent it out, it will have no cost to you.

The payment received for letting a home -either for holidays or long-term (longer than 2 months)- must be declared before the Tax Agency, which depends on the Central Government. The income tax you pay depends on the fact wheter you are a fiscal tax-resident in Spain (IRPF tax) of not (IRNR tax).

Legal advice

Even though the Decree will enter into force on 12 May, it is already possible to start the process to register homes in this Registry. If you have one or several properties being let as holiday homes you must register them before the Government of Andalusia. We can take care of processing the documents you need to register your home. We can also inform you about all the requirements that your home must meet and your obligations as its owner. Don’t hesitate to contact us at 0034 – 952 532 582 or info@cdsolicitors.com

Author: Gustavo Calero Monereo, C&D Solicitors (lawyers)
Torrox-Costa (Malaga/Costa del Sol/Nerja/Andalucia)

INCREASE OF THE VAT AND OTHER TAX MEASURES REGARDING THE PROPERTY IN SPAIN

Geschrieben von admin am 17. Juli 2012. Veröffentlicht in Unkategorisiert. Keine Kommentare zu INCREASE OF THE VAT AND OTHER TAX MEASURES REGARDING THE PROPERTY IN SPAIN

The Spanish Government, particularly Mr Cristobal Montoro, Chancellor of the Exchequer, has announced last Friday 13^th of July that, from the 1^st of January 2013, will apply a VAT of 10% (of the declared value of the property) to new build properties, with regard to the current 4%.

During the press conference after the Council of Ministers, the Chancellor has recalled that the application of the reduced VAT (4%) for the purchase of a property had an “expiry date”, that the Government has stated today for the beginning of 2013.

Mr Montoro has also indicated that, according to the recommendation of the EU, from the 1^st of January 2013, “the tax deduction on the purchase of a property in Spain will be abolished”.

So, if you are thinking of purchasing a new property, it will definitely be crucial, from a financial and economic point of view, that you do it before the 31^st of December 2012. To see it more clearly, the difference in a direct taxation regarding a property valued at 200 000,00€ is 12 000,00€.

If you are planning to purchase a property here in Spain, do not hesitate to contact a professional lawyer for a deeper tax planning.

Author: Francisco Delgado Montilla, C&D Solicitors (lawyers)
Torrox-Costa (Malaga/Costa del Sol/Andalucia)

Government of Andalusia increases many taxes

Geschrieben von admin am 27. Juni 2012. Veröffentlicht in Unkategorisiert. Keine Kommentare zu Government of Andalusia increases many taxes

I would like to update you about some new measures carried out by the Junta de Andalucía, containing many reforms in the different existing taxes (not exactly to re-boost the current market situation…).

Concerning those interesting, we will focus on the Stamp Duty (A.J.D.), a tax applied to those public acts formalized on public documents to be registered in the different Public Registry offices with an economic amount (e.g. new property sales, new building declarations, or a mortgage deeds, among any others).

So, last week, the 19^th of June, the Junta of Andalucía approved the new Decree-Law 1/2012, of 19^th of June, which contains a series of tax, administrative and labor measures, published in the B.O.J.A. (Official Journal of the Government of Andalusia) last 22^th of June 2012. You can find it by clicking: http://www.juntadeandalucia.es/eboja/2012/122/BOJA12-122-00014-11216-01_00009593.pdf

Within these measures, regarding the tax ones, we can find an increase of the general rate on the Stamp Duty, going from 1.2% to 1.5% of the declared value.

Author: Francisco Delgado Montilla, C&D Solicitors (lawyers)
Torrox-Costa (Malaga/Costa del Sol/Andalucia)

OBTAINING THE LICENCE OF FIRST OCCUPATION

Geschrieben von admin am 19. Januar 2012. Veröffentlicht in Unkategorisiert. Keine Kommentare zu OBTAINING THE LICENCE OF FIRST OCCUPATION

We have recently known, through our clients’ consultations, of the situation that most of the owners of La Axarquía area suffer, which comes from the lack of a License of First Occupation on their properties, particularly, regarding those problems with contract the supplies, such as the electricity supply for their first time or for its restoration, after being cut off by the electricity company (i.e. end of construction site temporary power).

The License of First Occupation is a certificate issued by the town hall that confirms that a newly-built property fully complies with all planning and building regulations, and is ready to be used as a dwelling. It also confirms the compliance with all Health, Safety, Planning and Construction laws, and that the property has been fully completed, with no outstanding works. Each newly built dwelling will have an individual License of First Occupation. License of First Occupation only applies to newly-built properties as the L.F.O. is the original authorization to use them as a dwelling.

Granting a License of First Occupation certifies that the developer has built the dwelling fully complying with the original Town Hall’s Building License, as well as complying with all Planning laws.

The first occupation licence wasn’t required before 1978, this means all the properties with more than 37 years won’t have it.

The License of First Occupation is required to have access to the official supplies (water, electricity, gas,…).

The Spanish law requires the granting of the License of First Occupation to set up any utility contract for the property. Nevertheless, the most of the properties without the first occupation licence have electricity supply and water supply. Many of these properties haven’t a first occupation licence due to the works in the urbanization aren’t finished yet but the owners are living there. We can say that in many cases the real situation of these properties haven’t anything to do with the content of the law.

It is always advisable to complete the purchase with a valid License of First Occupation (LFO) in place, even if it is not illegal to complete at the Notary office without a License of First Occupation. In other words, the property purchase completion before a Spanish Notary public without a LFO is legal in Spain, and the property can be lodged under your name at the Land Registry records. However, it is not legal to “live” in a property without the License of First Occupation. This is the reason because not having it in the new homes will prevent you from having access to water and electricity supplies for the property in order to get them connected.

Properties without LFO can be bought, sold and registered at the Land Registry. So it is not illegal to sell a property without LFO. If you own a newly-built property that was not issued with the License of First Occupation you might have trouble selling it as the potential buyers may seek for a steep discount because of this matter.

The information concerning the LFO given in this post may have to be understood as a benchmark to all those new built properties according to a building license previously obtained and complying with all Planning laws. If this building license was not given, if it was not according with Planning laws, or, in the event that the works carried out did not adhere to the building plan, we will be in another different situation, and the way to get access to these supplies would be different as well. But this is an issue which will be analyzed in a further post, taking into consideration the new measures introduced by the called new “Decree of legalization”, approved by the Andalusian Parliament last 10^th of January, in this sense, which is not in force yet.

Author: Francisco Delgado Montilla, C&D Solicitors (lawyers)
Torrox-Costa (Malaga/Costa del Sol/Andalucia)

ADVICES FOR OWNERS OF NON-REGISTERED HOMES IN THE LAND REGISTRY

Geschrieben von admin am 14. Dezember 2011. Veröffentlicht in Unkategorisiert. Keine Kommentare zu ADVICES FOR OWNERS OF NON-REGISTERED HOMES IN THE LAND REGISTRY

New building declaration and Land Registry records

The possibility of registration in the Land Registry of constructions without building permits after four years of completion, is provided by a State regulation – Spanish Royal Decree Real Decreto 1093/1997 of 7th of July, Section 52 provides this possibility, as well as the following requirements for this registration: 1) proceedings of town planning discipline shall not appear in the Land Registry against the construction; 2) the time fixed by law shall have been elapsed in order to “tackle” this infraction through the administrative procedure and 3) certification of the year of completion of the construction.

Thanks to the above mentioned Section of the Royal Decree, thousands of constructions have been registered in the Land Registry, although they did not have the building permits or the constructions did not comply with the conditions of the building permits.

This Section has not been modified and is still in force, however some elements has been incorporated to increase the requirements demanded by the Land Registry offices and to “toughen” the requirements for the admission of this registration, as for example:

1) Amendment of Section 20.4 of the Spanish Land Law which refers to the declarations of new buildings and incorporates a new requirement for its registration in the Land Registry—the submission of a certificate from the city council stating the fuera de ordenación (out of ordination) condition for this construction.

2) As a result of the approval of the new regulation Reglamento de Disciplina Urbanística (town planning discipline regulation) by the Junta de Andalucía Regional Government in May 2010, pressure and control have been increased above these constructions located in non-developable (non-urbanizable) lands. The Junta de Andalucía have notified the Directorate General for Registries and Public Notaries, so that they demand new obligations for the registration of declarations of new buildings, as for example, the submission of a certificate from the city council, so that the Registry record the “fuera de ordenación” condition (out of ordination) or the “asimilado a fuera de ordination” condition (assimilated to out of ordination).

3) Some Land Registry offices have begun to demand the submission of this certificate from the city council as an essential requirement for the registration of the declarations of new buildings.

What do all these changes mean for owners who want to register their home?

In the event that in the future the Land Registry requires owners the submission of this certificate from the city council to register their home, swimming-pool, garage or any other construction in their property, these below may be the consequences:

1) Increase of the economic costs for the declaration of the new building, because some city councils are approving ordinances for the payment of fees for obtaining it, as they need financial resources; in some cases, these costs may range between EUR 2,000-5,000, depending on the square meters of the property.

2) As any other application to city councils, this procedure would be slow and may imply several months until obtaining the certificate; in case owners need to obtain the declaration of new building urgently because of a sale, this period of time may become an important handicap.

3) The fact of recording in the Land Registry the “fuera de ordenación” (out of ordination) condition or “asimilado a fuera de ordenación” (assimilated to out of ordination) condition on their property, implies the documentary evidence of some limitations, which may affect the sale price when transferring the property to a prospective buyer. It is also worth mentioning that the prospective buyer may demand a discount in a possible transaction regarding this fact.

To sum up, in the event that the Registry offices toughen in the future the requirements to register any construction in the Land Registry and the resulting increase of the costs and period of time for the procedure completion, we advise you to take advantage of the current situation and execute the Public Deed of Declaration of New Building of your home as soon as possible and submit it to the Land Registry to avoid any problem in the future.

Author: Francisco Delgado Montilla, C&D Solicitors (lawyers)
Torrox-Costa (Malaga/Costa del Sol/Andalucia)

The Living Will Document

Geschrieben von admin am 21. September 2011. Veröffentlicht in Unkategorisiert. Keine Kommentare zu The Living Will Document

Living will when losing mental capacity (f.e. by dementia)

A living will, also known as advance directive, consists of explaining how you wish to be cared for in the future if you lost mental capacity to decide for yourself. It includes your directives about the medical treatment to be applied in the future.

Warning: this type of document should not be mistaken for the will dealing with goods and assets issues; the living will is a decision to prevent future cruel medical treatments for terminally ill patients. It may be also applicable to patients suffering from a degenerative disease which may lead to their losing mental capacity, and therefore, their capacity to decide for themselves. It is also a valid instrument to provide directives in relation to donation of organs.

This document may be executed before a Notary Public or before three witnesses. Two of these witnesses shall not be relative within the second level of consanguinity neither share any kind of assets with the persons declaring their advance directives.

It is recommended that the living will includes the signatory’s values and reasons and the name of a representative who understands the signatory’s wishes and is willing to struggle to meet his or her directives. It is also recommendable the distribution of copies of this document, including to the lawyer if possible.

The living will may be cancelled at any time if it is destroyed. In this case, copies shall be also recovered; otherwise, a declaration shall be made before witnesses expressing the change of mind in writing or orally.

The issue of living wills: this type of document reflect the testator’s wish to die in dignity, avoiding medical treatments leading to artificial maintenance of life in a persistent vegetative state without hope, or considering these expectations, by application of solutions directly leading to reach an end. This issue is a highly delicate matter, because of the legal and moral consequences which it implies:

1.- This will shall never include provisions leading to obtain illegal results; however, as it is executed in consideration of death, it may refer to acts which might be legal in that moment, although it may be illegal at the moment of the execution.

2.- The Notary Public shall not try to replace the testator’s moral criteria with his or her own ones, when the grantor tries to decide about his or her own death; that is, the most pathetic sign of the constitutional right to confidentiality.

A State law provides the patient’s right to establish a living will, but the implementation of this right is delegated to regional governments, as well as the creation of registries. Several regional governments have set forth regulations about this issue; the Andalusian act Ley 5/2003 of 9^th October, about the declaration of advance living will deals with this issue in Andalusia.
Author: Francisco Delgado Montilla, C&D Solicitors (lawyers)

DRAFT OF THE DECREE ON THE LEGALIZATION OF HOUSING ON NON-DEVELOPABLE LAND OF ANDALUSIAN REGIONAL GOVERNMENT

Geschrieben von admin am 13. August 2011. Veröffentlicht in Property law, Unkategorisiert. Keine Kommentare zu DRAFT OF THE DECREE ON THE LEGALIZATION OF HOUSING ON NON-DEVELOPABLE LAND OF ANDALUSIAN REGIONAL GOVERNMENT

Three weeks ago, we received in our offices a copy of the draft implementing Decree of 20^th of June 2011, which regulates building and scattered rural settlements on non-developable (non-urbanizable) land in Andalusia.

This draft is supposed to be created as an attempt to regulate the situation of a large number of properties located on non-developable (non-urbanizable) land in Andalusia, where criminal or administrative proceedings cannot be filed against them for land development liability, because the offense or infringement is extinguished by prescription. The Andalusian Regional Government is partially responsible for this situation, as they have not protected or controlled the legality regarding land developments of municipalities for many years. Meanwhile, they have collected the profits from the transfers of title ownership by means of the transfer tax.

Regarding the draft of the Decree, the concept of constructions assimilated out of ordination is not understood. The use and enjoyment of these constructions can be exercised, but a complex administrative procedure is established, so that the city councils certify the security and necessary facilities for the use and enjoyment of these properties. However, the resolution to this procedure shall never mean the grant of the First Occupancy License, neither the owner’s rights shall be recognized to be exercised before any administrative or criminal proceedings (article 7, section 6 of the Decree).

If the use of housing is recognized and regulated to preserve the rural area, the environment and the scenic value where the construction is located, then, why the First Occupancy License is not granted when the owner is enjoying the property? What does “non-recognition” mean before any court proceedings? As a result, it could be understood that in the event of court proceedings, this recognition of assimilated housing shall not have any legal “value” for these proceedings, that is to say, legalization or regulation does not exist.

Maybe, the problem is based in the creation of the concept “assimilated to out of ordination”, which was incorporated by the Decree on Urban Discipline of Andalusian of 2010 and its implementation.

Furthermore, an additional problem arises, as the Land Registry jurisdiction belongs to the Spanish Government. As a result, the State legislation should firstly include this legal concept of “assimilated out of ordination” within its rules in order to authorize the registration in the Land Registry of any administrative action which establishes a construction under the consideration of this concept. Nowadays, the only existing concept is “out of ordination”, but nothing is referred to constructions “assimilated” to these ones. Then, the Regional Government is not authorized to establish the access or registration in the Land Registry, as this jurisdiction belongs to the Spanish Government.

Lastly, in many Andalusian municipalities as the Axarquía region, thousands of isolated houses have been built on non-developable land under the corresponding construction permits. Then, it does not seem coherent that differences in treatment are not considered for these owners acting in good faith, regarding these municipal permits they were granted. This draft of the Decree does not include any reference to them; therefore, the legal situation of the constructions with permits equates with these other constructions without permits.

In conclusion, regarding the content of the draft, legalization or regulation of properties located on rural land is not incorporated; no legal novelty is provided to solve out the problem resulting from the lack of control of Public Administrations regarding the use of land; this law only complicates even further the current situation of this issue.

Author: Gustavo Calero Monereo, C&D Solicitors (lawyers)
Torrox-Costa (Malaga/Costa del Sol/Andalucia)

NEW URBAN SCENE IN LA AXARQUIA

Geschrieben von admin am 30. Juni 2011. Veröffentlicht in Unkategorisiert. Keine Kommentare zu NEW URBAN SCENE IN LA AXARQUIA

Complex urban planning in Andalucia: PGOU, LOUA & POT

Due to the urban complexity that most of the municipalities of La Axarquía are immersed because of the Spanish local elections held in May, the changes in the local governments could mean changes in the way of managing each municipality and in the solutions that such local governments could propose in view of the complex urban development in this area.

We have to take into account that, nowadays, most of the municipalities are working in the production and approval of their new General Plans for Urban Zoning (PGOU) to adapt them to the Urban Zoning Code of La Axarquía (LOUA) and to the Plan for Town Planning in La Axarquía (POT), and so as to offer a final solution to all those housing developments built upon non-urban areas as well as to the thousands of isolated buildings within each municipality.

Apart from the several actions carried out by the town halls, it is worth mentioning the announcement made by the Junta de Andalucía about the approval of a Decree to legalize the large number of houses in La Axarquía. Besides, the Junta de Andalucía has made an inventory about houses built upon non-urban areas and which is being sent to each of the town halls so that they could know the situation of all those mentioned houses.

The PGOU is the main instrument in the planning of each municipality and it provides the characteristics and nature of the area that comprises such municipal district. So, it is very important that those owners with properties built upon non-urban areas, whether it is an isolated house or a house within a development, appear before the municipal offices as soon as possible, preferably with a specialized lawyer, in order to study the situation of the houses and the possibilities of legalizing them or declaring them houses out of regulation.

It is worth mentioning all those housing developments partly or totally built upon non-urban areas, but with different situations in their basic infrastructures (lighting, roads, sewer systems, water, etc). In those cases, it is necessary that each Community of Owners or, if it is not established, one of their representatives, enquires in the town hall about the situation of the housing development and its possible inclusion in the new PGOU.

If we take into account that it seems that possible mid-term solutions and measures may arrive, it is important that owners ask and take part in such “regularization” process that will be born within each town hall, so as their property or housing development could be part of this new plan, or in order to find a solution for each conflict or situation.

Obviously, regularizing each house will have a charge for the owners, depending on their situation, but we think it is a “minor wrong” if this situation of legal insecurity upon many rustic properties comes to an end.

Nowadays, our legal firm, which represents some clients that have houses or are part of a housing development built upon non-urban areas, has already started to deal with several town halls about the situation and regularization proposals of their properties. It is important that the owners are the ones who look for solutions with the town halls.

Author: Gustavo Calero Monereo, C&D Solicitors (lawyers)

CURB ON “FLOOR CLAUSES” IN MORTGAGE LOANS

BIG INCREASE IN THE LIFETIME MORTGAGE DEMAND

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More lifetime mortgages (reverse mortgage) Spain

Lifetime Mortgage (reverse mortgage)

According to the report published by “Optima Mayores” Advisers, the demand of lifetime mortgages has increased to 17% (19,900 applications) until April in comparison to last year same four-month period.

This increase in the lifetime mortgage demand matches the senior citizens’ growing needs to obtain an income and the better knowledge of this product in Spain, where it was first launched in 2004. Spanish Senior citizens’ pensions are at 40% below the European average, what indicates their necessity to face their retirement financing with a peace of mind. Regarding British senior citizens, the Euro and Pound Sterling exchange rate fluctuation has also reduce their earnings.

What is a lifetime mortgage?

A lifetime mortgage is a financial product that consists of a loan for seniors aged 65 or older or dependents, secured against the home where they live. They retain ownership of their home until they die, when their inheritors shall repay the loan or sale the property.

The maximum loan to be granted is based on a percentage of the property appraisal value. Then, the homeowner may receive a regular fixed amount or a lump sum payment.

Who qualifies for a lifetime mortgage?

The following requirements shall be fulfilled to qualify for a lifetime mortgage:

– The applicant or the selected beneficiaries shall be aged 65 or older; or otherwise, they shall be individuals with high to severe dependency levels.

– The borrower shall receive the money from the loan in regular fixed amounts or a lump sum payment (incomes).

– Only the creditor (banks or savings banks) is entitled to demand the repayment of the debt and the mortgage foreclosure when the borrower dies, or if provided in the agreement conditions—when the last of the borrower’s beneficiaries die. The mortgaged property shall be valued and insured according to the Spanish legislation in force.

These are the official requirements to be protected by the Spanish legislation regulating this type of loans and to be entitled to the tax advantages established by this legislation.

Clients and banks may freely agree about lifetime mortgage transactions which include a varied set of terms and conditions; consequently, a professional advisor’s counselling in this proceeding is a determining factor for the good end of the agreement to enjoy the best advantages and conditions available.

Spanish legislation regulating lifetime mortgages

In Spain, this type of mortgages are regulated by Law 41 of 7^th of December 2007—Mortgage Market Reform legislation. This Law provides that the lending institution is obliged to offer an independent advice to individuals, so that the consumers’ rights are preserved and the economic and financial conditions suit their needs. This counselling and negotiation tasks are normally provided by specialised lawyers and companies offering this service to private customers.

If you are thinking about a mortgage which best suits your economic needs, take your time and ask for advice to specialised lawyers. They will ensure the best deal for you.

Author: Francisco Delgado Montilla, C&D Solicitors (lawyers)

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BIG INCREASE IN THE LIFETIME MORTGAGE DEMAND

Lifetime Mortgage (reverse mortgage)

What is a lifetime mortgage?

Who qualifies for a lifetime mortgage?

Spanish legislation regulating lifetime mortgages

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