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One of the questions we are always asked by our clients is how much it will cost to reform a property here in Extremadura, it depends on the size of property in Extremadura and the amount of work it requires but we decided to have a page of our website devoted to reforming and honest explanations of all the processes involved from the buying costs of the house through to your moving in day.
Property In Extremadura
 So How do you turn this !
into this .... What is the real cost?
Reforming Typical Costs In Extremadura
Always get three quotes.
Before you get any tradesmen to do work for you always get a itemised presupuesta ( an estimate) signed by the company, dont agree to anything before you get this.
A typical 3 bedroomed flat in Extremadura requiring full reformation will cost approximately 36,000 euros. When you have your itemised quote you should check whether the builder has included the costs of electricity and water connection also if he is paying for submitting plans to the local council for the work being done, there is a 4% tax on all work carried out and normally builders won't pay this.
Electricity in Extremadura- if your house does not have a supply and is classed as urban land (village/townhouses etc) it will be about 17 euros a square metre from the nearest supply. In order to get an electricity supply connected you need a technical architect to map the electricity and provide detailed paperwork called a BOLLETIN which must be presented to the local council and also IBERDROLA (electricity company). There is also a one off connection fee.
BOLLETIN paperwork- 200euros
One off connection - 300euros
Rewiring costs in Extremadura- for a basic electricity installation it will cost about 1200 euros. Electricians will only rewire the house, if you need to cut the walls to put in cables then a builder will do this for you. If you do it yourself it will save a considerable amount of money. Dont try to rewire it yourself or get anyone who isn't registered otherwise IBERDROLA won't connect you. The laws are very strict here and all tradesmen are registered and accountable for their work.
Connecting Fincas In Extremadura - This can be complex, in 2005 the laws changed, you have to seek permission for a finca connection, they do not have to grant this and they are insisting that alternative power must be used e.g solar power/generator.
One example- a finca in Extremadura requiring a connection, an electrician must first ask for permission to connect, if this is granted then he will visit the property and measure the distance of connection required. e.g 700 metres connection will cost you 15,000 euros for a subterranian cable, high tension cable will be a similar price. That does not include any rewiring in your finca. It's a scary quote but an actual one that I received.
Alternative power in Extremadura- a generator which runs on diesel will vary in cost depending on your use of power, a 3 bedroomed house will on average require a 12-15KVA generator costing approx 4100euros plus 16% IBA (tax). You also need a battery back-up system to store the power ( as you don't want the generator running 24/7) You need a large enclosure for a generator and to be honest it's noisy. You will also have to purchase diesel on a regular basis which can be expensive.
Solar power in Extremadura- this is the preferred method by the Local council who will also give you a 40% grant of the total cost involved. Estimates come in at 15,000euros, 6000euros of this will be refunded by the grant. Benefits are that its free to run and Extremadura has 300 days sunshine a year.
Do it the old fashioned way- buy a gas bottle cooker, very common in Spain, new to buy approx 250euros. Bottled gas is 11 euros and 1 bottle in a cooker will last a few months. Most fincas have log fires, a delivery of logs in Extremadura for the winter will cost 60-70 euros. Put in a small water heater costing approx 100 euros which uses bottled gas, easy to install and cheap. Use a generator in a limited capacity for lights/television etc. This method won't run a freezer, better to know now than find out later.
We used the help of our Electrician and friend Jose to give us these estimates, he is registered in Spain as a technical architect, electrician and solar power specialist, he also was the cheapest of our 3 quotes. I would recommend him to anyone who needs advice and a good electrician. Jose is based in Extremadura.
Water Connection in Extremadura- connection to the mains varies on where your point of access will be. In a village you would be charged a connection fee and also for any work required to connect into the street. Permission must be sought from the council, it is always granted. In Fincas you would need to consider alternative ways to get water, you may also have to install a sewage tank which has to be emptied yearly. Some fincas are connected to town water others have a well, there are many eco friendly methods but they require a lot of research and can be costly.
Installing a full bathroom- my best tip, if you are bringing your furniture with you and have space buy a 299 pound B&Q bathroom suite, a plumber will charge approximately 1200 euros for installation, seek a separate quote if your kitchen also needs to be replumbed.
New Roofs- Property needing reformed in Extremadura usually needs a new roof or major work, don't ask me why, it's just I haven't found any that doesn't yet.
Most builders give you an estimate of 72euros a square metre. I think this is too high. The tiles are 7 euros a square metre and you can buy the shaped felt for it for 4 euros a square metre. Do It yourself its not difficult and it will save you a lot of money.
Kitchen
There is a few ikea's in Spain if you want the fully fitted look . Simple Spanish traditional kitchen can cost you less than a thousand euros. There is a big choice with this. Basically it's whatever you like.
If you are into DIY and are prepared to work you can completely reform a house thats including rewiring and replumbing, new roof ,kitchen for approximately 8000euros. I did it for a little less but my husband is a builder. We got tradesmen only to rewire and fix copper piping. I got a quote for reforming my house and it was 36000 euros, It was hard work but well worth it.
Always get 3 quotes- I have many contacts here with good quality tradesmen, let me know if you need me to make the initial contact for you.
Electrical Items In Extremadura
I am always asked if electrical goods will work in Spain, the answer is yes as long as you have european adaptors, you can buy these cheaply from companies like Argos. Try and look for the adapters which will fit flat into the Spanish sockets. I use all my British electrical items and I have never had any problems.
TV and Satellite In Extremadura
Your TV will be able to pick up the Spanish stations, and you can get eurosport here which is in English. Satellites are a different matter.
If you want your sky TV you have to reprogram your skybox, its easy to do but it wont give you all the channels. There is an excellent website for information on this which I am going to include.
The next part is tricky technically sky tv are not allowed to provide european customers sky tv however what they do is use other companies who registrar your subscription in a uk address for you. These companies charge a lot of money for the privelege. My advice if you are keeping a British bank account going just keep your sky subscription running they don't care as long as they get their money if that's not an option just prepay every year. Take your box and your satellite with you and get an engineer here to install it for you.
A great site for all your satellite needs www.satelliteforcaravans.co.uk
Your Mobile
Spanish mobiles are cheap to buy but you can change the sim to a Spanish provider 25 euros sim gives you 25 euros calls, get your phone unlock codes from the maker before you move, that way you are able to use it straight away.
Costs of Services in Extremadura
Electricity- similarly priced to the UK
Water& rubbish collection in Extremadura- about 36 euros a month.
phone connection In Extremadura-can be upto 200euros for connection after this your bill is paid every 2 months. You can speak to an English customer service person at Telefonica they have a special line number 1004. An excellent service exists for 10 euros a month you can call international for 15 minutes every night, great for keeping in touch with your family.
Grants available In Extremadura for Reforming Houses
There is a grants system for reforming old houses of architectural interest, consult with your local council about this. Obviously if you accept the grant you will be bound by certain conditions i.e the length of time you stay in the property etc, they do this to ensure you are not a developer taking the grants and moving on to another reform. It also means that you have to pay the 4% building permit to the council, sometimes it can benefit you to forget to mention this and it saves a little money.But if you take the grant you have to be honest.
The other method is one which the Spanish use firstly as a business venture but also as a means of getting funding for renovation from the EU. There are EU grants available up to a total of 100,000euros for casa Rurals (rural hotels or apartments, this is part of the restructuring of rural areas initiative. Never buy one on the basis that you will definately get the money though check it out with your local council who can advise you best on grants to their specific areas.
After a certain period of time, your casa rural can resort to your home and the money does not need to be paid back.
You need to be very careful with grants here firstly the process is a long one and secondly there is a skill in filling thepaperwork in but there are agencies who can do this on your behalf based mainly on the Costas. You can find these on the internet. Always ask them to be clear about what they guarantee you in terms of grants before you hand over the cash.
Buying Property In Spain
This section is a guide only always consult a professional, their advice is highly recommended.
Be aware of the legal costs. It is recommended that you add 12% on top of the purchase price to fully cover lawyers fees registrar and notary etc.Your lawyer will formalise the agreement, which will set price, deposit and completion dates. You the purchaser can choose your completion dates although generally it will be between 30 and 180 days. Your lawyer will insure that the house documentation is in order so you will know that the house is free of taxes or debts.
Once this process is complete you pay a holding deposit, this is normally about 10% of the purchase price, the property is now yours and you will be asked to sign an option to buy certificate. If you are visiting Extremadura and have made a definate decision to purchase a property ensure you can access euros for your deposit, for example by registering with a currency house for european transfer or by accessing your bank through the internet. Most immobiliarias here will require the deposit in cash this is paid to the current owner of the property and secures your sale, another option is to transfer money when you return to Britain, however someone else could have placed a deposit down on the property in that time and you lose your house sale.
You can mortgage a property here and recieve upto 60% of the purchase price, it can take a long time for the banks to do checks and value the property however.
On the date you have agreed to finalise the sale, you meet with the sellers, your lawyer and the notaria, ( who witnesses the sale) hand over the balance of the cash, the property is now fully owned by you. It is not necessary to have a lawyer for house purchases in Spain so here is a guide for people who wish to save a little money on buying costs, basically you do the leg work and check the details of the property.
The seller of a second hand home should provide you with the following documentation.
The title deed of the property.
Receipt of payment of the real estate tax for the last year.
Receipt of payment of the tax on the increased value of urban land.
Certifcate that any community charges are up to date.
Latest copies of domestic bills so you can change their details and registrar your own at the water and electricity departments.
If its a new property the developer has to give you.
A deed of declaration of new construction.
Occupancy permit.
Certificate of rateable value.
A document which details the terms of purchase. Advised to seek legal advice before signing this, there can be a lot of penalty clauses in these.A notary must also be present.Fees
Lawyers fees usually about 2% plus 16% IVA
Notary fees fixed by law and in the range of 300 to 900 euros
Registry fees approx 40% of notary fees
Transfer tax 7% of the purchase price
Plus Valia a local municipal tax on assessed increase in the value of the land since the last time the property changed hands. It varies considerably a one off payment the Town Hall can exactly calculate this amount. (No plus valia on rural land sales.)Who Pays What?
It is normal for the buyer to pay for everything except the plus valia, everything can be negotiable and needs to be written in the contracts. The vendor will pay his own capital gains and estate agents fees.
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