Property Won't Sell - Help!

Information and questions about the Law in Spain and Andalucia.
BMXBandits198
Newbie
Posts: 2
Joined: Tue May 22, 2018 6:14 am
Location: Alcaucin

Property Won't Sell - Help!

Postby BMXBandits198 » Tue Oct 02, 2018 4:20 am

My parents have a new build apartment in Alcaucin that has been up for sale for a few years but not sold. Admittedly it was probably overpriced.

They moved back to the UK a couple of years ago and following the death of one of my parents earlier this year we are left with an apartment that the remaining parent does not want to live in and has trouble with damp in the apartment itself, occasional pooling of water in the ground floor car park and the building lift hasn't worked for a year. There are a number of other apartments in the building that remain unoccupied and the original owner went bankrupt so the property is with the bank I believe.

My questions are as follows:
If we were to sell the property does anyone have a rough estimate of what the likely costs would be? We are currently getting the deeds updated at a cost of £3000+ so I can only imagine it will be considerably more than this.

The whole issue is a nightmare for us and I doubt it will ever sell so when our remaining parent passes away can the surviving children wash their hands of it or will we then become liable for the tax payments etc. I'm wondering when we update the deeds and will can we not be written in as beneficiaries?

Thanks in advance.

TorreDelAguila
Resident
Posts: 1356
Joined: Thu Jan 23, 2014 11:52 am
Location: Sayalonga

Re: Property Won't Sell - Help!

Postby TorreDelAguila » Tue Oct 02, 2018 7:45 am

If you have given up on hoping to sell it for a meaningful sum, then maybe you should cut your impending losses, and simply hand the apartment back to the bank who owns the remainder of the property. They may be willing to offer you a token sum; worth asking. Just a suggestion.
Chris

Gasman
Resident
Posts: 820
Joined: Fri Jul 24, 2009 10:53 am
Location: Huelva province

Re: Property Won't Sell - Help!

Postby Gasman » Tue Oct 02, 2018 1:33 pm

There is also the small matter of a will. Did the deceased parent leave a will, was it written as a spanish will, and does the remaining parent thus inherit it ... which is perhaps why you are getting the escritura redone, in their name. Note that inheritance would be different under spanish will-law, and under the UK-proviso (so that even the spanish will could leave the estate as wished, rather than under the Napoleonic inheritance rules). You can only be beneficiaries of a will, not the deeds.

Whoever is the owner, your surviving parent alone, or that person plus the children, a new will should also be drawn up. But it seems to me that Torre dA might have the best idea and consult the bank.

It is a common practice in spain for an elderly owner of property to give the property to their proposed inheritors, while living, to avoid a lot of complications at time of death, but I believe tax implications come in if that person should die before 7 years are up after transfer of ownership. They can also maintain "usufrut" which is a right of occupation ... BUT it seems to me you ALL want to be shut of it - check with the bank.... You may have to do it through head office, or a specialist part of the bank that deals with repossessions ... not your local branch! You may even find that the bank has plans for the appartments so they can realise their asset!

Good luck with it all - this kind of nightmare is not what you need at this time for your family.

El Cid
Andalucia Guru
Posts: 14394
Joined: Sun Oct 24, 2004 10:42 pm
Location: La Herradura, Costa Tropical, Granada

Re: Property Won't Sell - Help!

Postby El Cid » Tue Oct 02, 2018 11:01 pm

There is no 7 year rule on gifts. The equivalent of IHT is due immediately on gifts.

There are special rules for transfer of property between spouses and children, but Beachcomber knows better than I do.

Sid

Beachcomber
Andalucia Guru
Posts: 9680
Joined: Tue Jun 15, 2004 11:11 pm
Location: Guadalhorce Valley

Re: Property Won't Sell - Help!

Postby Beachcomber » Wed Oct 03, 2018 6:47 am

Since 1st January 2018 there has been no inheritance tax to pay by spouses or children, whether resident or non-resident, on inheritances in Andalucía of less than one million euros. This allowance does not extend to donations.

Prospective inheritors are under no obligation to accept an inheritance even if assets are left to them in a will. The inheritance can be renounced simply by declaring such before a notary.

BMXBandits198
Newbie
Posts: 2
Joined: Tue May 22, 2018 6:14 am
Location: Alcaucin

Re: Property Won't Sell - Help!

Postby BMXBandits198 » Wed Oct 03, 2018 9:18 am

Thanks for the helpful replies all.

There was a Spanish will and we're about to have the Deeds changed over to my father's name as well as a new will drawn up.

It's causing us a great deal of stress trying to get the issues affecting the property sorted. I believe it's a white elephant and we'll never get them sorted so good to know we may not be responsible for the building after my father passed away. I think we'll talk to the Solicitor doing our legal work about our options.

Thanks again

TorreDelAguila
Resident
Posts: 1356
Joined: Thu Jan 23, 2014 11:52 am
Location: Sayalonga

Re: Property Won't Sell - Help!

Postby TorreDelAguila » Wed Oct 03, 2018 9:44 am

Good luck with it. As has been said, worth (your solicitor) talking to the bank about a hand-back and a figure, which could be better than you might hope. Remain cheerful - it will sort itself out.
Chris


Return to “You & the Law in Spain”

Who is online

Users browsing this forum: No registered users and 3 guests