Buy to Let Property in Lanzarote
Introduction to Lanzarote
Lanzarote, the fourth largest of the Canary Islands, remains an ever popular destination for travel and permanent relocation due to its combination of beautiful year-round climate, vibrant nightlife, beaches and laid back lifestyle, as well as being within easy reach of major European hubs. Being only 80 miles off the African coast, the weather is dry and sunny for much of the year, average winter temperatures rarely drop below 21 degrees C and summer temperatures do not become oppressive, averaging 29 degrees in July. Lanzarote has some stunning landscapes as the island is volcanic in origin, and unique features such as the longest volcanic tunnel in the world, the 7km long Atlantida Tunnel. The main resorts include Playa Blanca, Puerto del Carmen, and Costa Teguise.
The current property and rental markets
Despite the credit crunch which has affected property markets throughout much of the world, Lanzarote is continuing to remain very popular with overseas investors, principally for the reason that the island has a large influx of foreign visitors every year – nearly a million come from the UK alone. The climate allows properties to be rented year round, either for short-term contracts of just a week or two, or longer contracts of several months. As buy-to-let mortgage rates are comparatively low and property prices do not show any sign yet of falling, Lanzarote remains very attractive when compared to other destinations. In addition to luxury villas, it is still perfectly possible to buy apartments for less than 100,000 Euros, so there are options to suit a range of budgets.
Future growth
In recent years, one of the most popular places to buy has been Playa Blanca, in south Lanzarote, which has seen a great deal of development. Whilst it is still popular due to the reasonable prices of properties on offer, the rental market has become competitive here due to the large supply of properties and it is not always easy to guarantee rental contracts. Remembering also, that you will need a touristic license in order to rent out your property as a holiday villa or apartment, legally. A hot-spot that is worth considering for letting out on a long term basis, is Costa Teguise, due to the growth in the local residential market – the resort is situated very close to the island’s capital Arrecife, of which Costa Teguise is gradually becoming a suburb, and so most rentals are now going to local residents rather than foreign tourists. Property values have performed consistently well over recent years.
The buying process
Whether you purchase via an Estate Agency or directly from the seller, you will first enter into a private contract defining the price, property details, and payment arrangements. This contract becomes legal as soon as the purchase deposit is paid, from then on both parties are bound by the civil code. It is important at every stage to have independent legal advice. Do not leave anything to chance, particularly with the recent events that have caused homes across Spain and the Canaries to face demolition. In order to transfer the deeds to your name, they must be signed in front of a Spanish notary, and a cheque presented for the remaining balance.
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This article was kindly donated by our friends at www.1000mortgages.co.uk in the UK… providing mortgages and advice within the UK, Ireland, and abroad.
