| Frequently Asked Questions |
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| We understand that when buying a property in Portugal we need to add 15% to the purchase price to cover legal fees and purchase costs! |
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| Answer. Absolutely not! For a house the percentage can be as low as 4.8% for a property of say 150000 Euros and 6% for a property of 350000 Euros. If it is a building plot or ruin then expect to pay in the region of 10%. There are a plethora of TV programs and publications on ”Moving abroad” and they often give the wrong information. Whenever we have a client interested in making an offer we calculate in advance all the extra costs including solicitor fees so that the prospective buyer knows exactly where they stand. |
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| Can I buy a piece of land and put a wooden house on it? |
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| Answer. If the land is classified as urban or has an existing registered building on it then planning approval can be sought to construct a wooden house on the land or in place of the existing structure in the same way as for a conventional house, and permission will usually be granted. Bear in mind that the structural qualities for conventional construction will apply to wooden structures. Permission will not be granted for wooden houses on agricultural land and any construction with the intention of being used for habitation, even if temporary may be subjected to it being removed. Temporary structures for storeage of tools, etc is usually acceptable. |
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| Mortgages, what are the realities of securing a mortgage with a Portuguese bank? |
| Answer: Typically, banks in Portugal will advertise that they will approve mortgages up to 80%, subject to valuation, to qualifying clients (resident or non-resident), on appartments, villas, cottages, etc. Since the ”credit crunch” expect no more than 60%! They will also fund the construction of a new house, however it is expected that the title for the land or ruin and planning permission have both been secured by the client, and so will finance about 60-70% of the construction cost only. Banks will not lend to purchase land or ruins. Houses that require only moderate renovation and have at least a kitchen and a bathroom can be mortgaged, typically up to 60%. |
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| I am quite a capable person can I build my own house here in Portugal? |
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| Answer. It depends on what building work is required. If the existing house is in reasonable condition, (no major structural defects) and does not require any extension to the existing footprint or does not require a second floor for example, then yes, the repairs and replacement of roofs can be done by anyone. Remember this, ”3Rs”, Renovate, Repair, Replace, these are items that any property owner is entitled to do. Obviously then, extensions, additional floors, demolition and new construction will require planning permission and therefore will have to be constructed by a Portuguese licenced builder. We have been asked if it is possible for an English builder to obtain a licence here, it is possible but requires much patience, time and effort and a working knowledge of the language. Because we also have a Project Management company we have the experience to offer advice on which properties would be suitable for DIY and owner builders. |
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| I want to have a new house built in the countryside what are the restrictions on size and swimming pools? |
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| Answer. Any new house has to be built on urban land or in place of an existing structure. It is unlikely to find urban land in the countryside as it is normally found in towns and on estates. This is why we have over 100 countryside ruins in our inventory, these can be demolished to make way for new houses. Every ruin can be demolished and rebuilt, the maximum reconstruction possible is determined by the zoning. Some zones will allow the existing footprint to be extended up to 250m2 this would include a swimming pool, other zones will allow a very generous 300m2 and in addition a swimming pool. We have for each ruin maps of the zones and the relevant laws to determine, in each case, what will be allowed. |
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| We are considering the North of Portugal or the Silver Coast how does this compare with the Algarve? |
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| Answer: We love the whole of Portugal and Beverly and I have spent many holidays and long weekends visiting various locations in the North including Silver Coast but would not wish to live or invest there. Flights from UK airports to Lisbon and Porto are expensive and not as frequent to those into Faro, Algarve and so the availabilty of cheap flights are rare making it difficult for family or friends to visit and frequent holidays expensive. Also the Algarve has a micro climate which gives us very mild and sunny winters whereas immediately North of the Algarve the winters are harsh and wet, typically 3-4 times more rain, 10ºc colder in winter and 6-8ºc colder in summer, not much different from the rest of Europe for that matter. Scroll to the bottom of this page to see the table of Climate Statistics, and compare for yourself. |
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| What is the cost of living like in the Monchique area? |
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| Answer: Many of our clients are quite suprised at how low the cost of living here is, annual rates can be as low as 30 Euros a year, A very large villa with garage and pool can attract annual rates of 200 euros per year. Heating costs are small due to the warm climate, petrol and diesel is far cheaper and road tax and car insurance about half of what it is in the UK for example. Parking is free in Monchique including free underground parking. No TV licences here! Most properties in our area have natural spring water on the land, those with mains water are charged under 1 euro per cubic meter (1000ltrs) a typical meal out for two including wine can be between 15-30 euros. Typically ones pension can go twice as far in Monchique than in the UK. |
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| What is crime like in the ”Upper Algarve”? |
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| Answer: Fortunately crime has not reached this area and in general is only evident on the coast and large towns where commercial and industrial activity is large. Monchique and the surrounding villages are still very much occupied with locals tending gardens and orchards which is a wonderful form of security! Portugal ranks very highly in the most sought after and safest places to live and as far as cities go, Lisbon is ranked 9th in the worlds safest cities in which to live. |
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| We have heard about ”Land Grab” in Spain and so are nervous about buying Property. |
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| Answer: Many people incorrectly assume that since Portugal and Spain are both in the ”Iberian Peninsular” that they must have the same customs and laws. Nothing could be further than the truth! Each country has developed independently and the differences are huge. Comparing Spain with Portugal, would be like comparing France with United Kingdom or Denmark with Greece. There is no Land Grab in Portugal! Actually the Land Grab in Spain has benefitted Portugal in that many Property owners in Spain are selling up to move to Portugal! |
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| We don't want to retire yet but are thinking of getting a foot in the Portuguese property market and buying a ruin to develop at a later stage, is this a wise thing to do? |
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| Answer: Many clients buy a property now even though they may not use it for several years, simply to buy at todays prices whilst they are still cheap.The same would apply to buying an old house or ruin. The right to refurbish, repair or rebuild does not diminish with time and the annual rates are so small, typically 20-50 Euros per year for an old ruin! |
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