18 listings found. Page 1 (displaying properties 1-5)
Every inch of this brand new extravagant stone built Finca, has been designed so that you..
Situated in a quiet area of Portals Nous in South West Mallorca & just a few..
This spacious detached villa enjoys beautiful mountain views and panoramic scenic views across both Bendinat and..
So how does rent to buy work in Mallorca?
Rent to buy properties in Mallorca can have various contracts which vary from owner to owner but the basics are as follows:
- A purchase price & rental term is agreed - the rental term can range from 3 months up to 2 years, again it depends heavily on the vendor and indeed the position of the purchaser. Standard length of time on a rent to buy contract in Mallorca is 1 year but it can be longer.
- A non-refundable deposit is paid on the agreed sales price of the property - this again varies between 5% and 10% & depends on the variables between purchaser and vendor - in addition to this there is normally a breakage deposit that is usually requested by the vendor. This normally equates to 1,5 to 2 months rent.
- The agreed monthly rent works as a "pay as you go" system - this means that for every month you pay it reduces the sales price on the property by that amount – for example:A Rent of 5k per month over a 12 month rental period = 60,000 Euros, this amount would be deducted in conjunction with the deposit from the pre-agreed sales price when you buy the home at the end of the term.We can also achieve further reductions on the monthly rental amount for advance rental payments on properties. For example:- 3,6,9,12 months upfront can qualify for up to a 10% discount (this would be based on the maximum term and then scales down accordingly).
- If the purchase does not take place at the agreed time, then the deposit is forfeited - this compensates the vendor for the missed opportunities of achieving a sale for the duration of the rent to buy term. The breakage deposit would be returned upon inspection of the property and confirmation of its state being as good & as it was upon entry.
These rent to buy terms and conditions are flexible and are in no way fixed and used for example purposes only. For more information about any of our rent to buy properties in Mallorca, please contact us and we will be happy to advise you or negotiate terms on your behalf.
Rent to buy contract
Why throw your money away month after month on renting a property in Mallorca, when you can be paying towards ownership and banking the savings instead? Signing a rent to buy contract here is like having your cake and eating it.
Alternatively, if you wish to buy a property in Mallorca, but are unable to gather all the funds required to pay the total deposit required by the banks to obtain your mortgage, a rent to buy property is a fabulous option.
Not only does the sale price of the property freeze, but the money that you pay each month in rent, also comes off the overall purchase price.
The added benefit is the knowledge that your rent to buy home will eventually be your own, meaning that you will be able to do any works to the property that you wish, reforming and improving it to your own taste.