Land and Investments in Mallorca

Q: What is the average price of a property in Majorca?

A.   It is fair to say Majorca is more expensive than mainland Spain. Prices will start at around 110'000Euros (£76'000) for a 1 bedroom apartment and rise in accordance with the size of the property. The bigger and more luxurious the property, the more money it will cost. When buying a property in Majorca you should add 10% to the purchase price as a rough guide as to the purchase costs such as tax, survey fees, etc.

Q.    How easy is it to buy a property in Majorca?

A.    Very. The people we introduce you to will guide you through the complete process in a very friendly and efficient way. They all live in Majorca, they are totally professional and all speak fluent English. They also have vast experience dealing with people such as ourselves who live in the UK and have never brought a place abroad before. They help you through every step of the Majorca property sales process.

Q.   But how do I know I can trust the people I will deal with?
A. By using the people we will introduce you to will save much wasted time and anguish as it will take away the worry that you do not know or trust these people. We have personal experience with them all and would not be recommending them to you therefore risking our reputation and our whole business if they were in the least bit shady. Archway Majorca will guide you all the way and be on hand to deal with any issues you do not fully understand from the start to the finish of the Majorca property sale.

Q.    What type of deposit will I need?

A.   Once you have found a property in Majorca you wish to buy and agreed the price via the estate agent you will need to make an Option - Purchase Contract. This will be handled by the lawyer we introduce you to and means you have to send 10% of the purchase price to a client account held by the estate agent. Once the Option - Purchase Contract has been signed and you have sent your deposit you will be expected to complete the deal by an agreed date. It is important you negociate this properly via your lawyer as if you do not complete the deal within the given time you could lose your 10% deposit.

Q.   Is it easy to get a mortgage and open a bank account?

A.   Yes. Regarding the mortgage, you will be asked to show proof of income in the form of payslips or a P60. If you are self employed a copy of your latest accounts will be required. The bank will lend up to 70% of the purchase price on the first property and 60% of the purchase price should you buy more than one. Opening an account again is very quick and easy. You will need to show your passport and two other forms of ID. Opening an account and requesting credit and debit cards is then done almost instantly. The bank we will introduce you to will be expecting you as we will ensure they are aware you will be going to them.

Q.   What type of Majorca mortgages are available?

A.   As in the UK you can have a fixed rate mortgage or a variable rate mortgage. The popular option at the moment tends to be the variable mortgage. With this, your rate is fixed yearly in advance and reviewed at the end of each year and adjusted for the next 12 months.

Q.   Do you pay Council Tax when you own a property?

A.   You pay a tax called Town Hall Tax which is for services such as refuse collection, etc and amounts to a couple of hundred pounds per year. Other taxes and costs include a Wealth Tax which is worked out against the value of your property, but is very small, and community charges set by the management company should you purchase a property within a complex.

Q.   How do I pay the bills?

A.   If you open a Spanish bank account the bank will organise direct debits to cover all utility bills. Then it is a case of transferring the funds from the UK which can be done electronically via your British bank account.

  How do I know my Majorca property will be safe in my absence?

A.   We will introduce you to a Brit who has lived in Majorca for 30 years and is therefore fluent in Spanish. This person can do as much or as little as you want them to. They will charge a yearly fee for their services however you decide what you need them to do. Our contact is very useful for all types of things such as local information and advice, key holding, arrangements around furniture delivery, cleaning, renting, etc. etc.

Q.    Do I need heating for the winter?

A.   Heating is advisable as winter evenings in Majorca can be chilly. Air conditioning units are the best as they cool temperatures in the summer and can be adjusted to heat room temperatures in the winter.

Q.    How do I get from the airport to the resort and back again?

A.   If you are used to package holidays transfers to and from the airport are included and are never an issue. Owning your own property means you are responsible for getting yourself to and from the airport once in Majorca. The popular way is of course car hire which can be done via the easyjet website or ringing Avis who we would recommend (see our link section). To hire a car you will need to take your UK driving licence and a credit card. The rental companies are based in the arrivals hall in the airport at Palma and the cars are always parked in the multistory car park on the ground floor. You should always refuel the car prior to handing it back and there is a petrol station at the airport. This is important as you will be charged over the top for fuel should the rental company have to refuel the car themselves. If driving is not for you there are plenty of taxis at the airport. A tip here would be to enquire about the price of your trip before you get into the car. Taxis from the resorts going to the airport are always cheaper than taxis from the airport going to the resorts.