Property in the Canaries (Tourist Licence)

[Mr Sparkle]

Re: Property in the Canaries

dglav, I'd be interested to hear about actual rental and costs of your apartment (assuming it's for holiday rental), aswell as the practicalities of running it, etc. Did you have a full structural survey done? We had a snoop around the development recently (unescorted!) and found it a little unimpressive. One bedroom units we looked in were very pokey (if you have to end up living there), as were their terraces. Up at the higher end of the development they looked onto the pool rather than at the view. One of the unrestored units along the access road had terrible rising damp problems up internal and external walls. Looking at the units already sold, it was hard to see how they had improved the detailing in order to avoid this happening in future...
On the positive side, the development was small and in a quiet & smart location, the pool pretty big, the two beds were obviously larger and seemed to enjoy better views, and the landscaping was nice and mature.
We're still undecided on buying though.

 

[dglav]

Re: Property in the Canaries

Mr Sparkle, Rentals in Loma Verde are getting between 300 and 400 euro pw. There is a person on site running a maintainence company, which we hope will work out nicely. We are at the top of the complex, with the pool at out door. The bottom part is not for sale yet, but still the top is best. Enquired about survey, but it seems its not done there, the developers are quick to fix any snags. We bought a one bed ground floor, and made a kids bedroom at back, I believe it's very good value. Mix of English, Irish and Spanish buyers. The units below the pool are the ones residents have bought, all other seem to be holiday apartments.DGLAV

 

[Mr Sparkle]

Re: Property in the Canaries

I believe the complex does not have a tourist licence. What limits does this impose on the property in terms of holiday rental?

 

[F. Kruger]

Re: Property in the Canaries

Mr Keane, The property price wasn't negotiable in my case, the seller had fixed prices on the different areas of the complex (which has a tourist licence)

Mr. Sparkle

I believe the complex does not have a tourist licence. What limits does this impose on the property in terms of holiday rental?

Are you both talking about the same property?

 

[Mr Sparkle]

Re: Property in the Canaries

Yes we are. I received an email from the agency saying "... the complex does not have a tourist license but many of the owners on there are currently holiday letting... 50% of the complex will be residential and the other half will be holiday lets and summer homes."
I'm confused as to what this really means.

 

[F. Kruger]

This article appeared in the newspaper, Island Connections” Edition 541.

Buy - to - let Brits hit in Spain.

Britons who have invested money in the property market in Spain on a buy - to - let basis could face problems after the Spanish tourism and tax authorities have cracked down on unlicensed apartment and villas.
A spokesperson for the Spanish Ministry of Tourism said “Nearly all are not licensed, which means letting them to tourists is illegal.”

One buyer from St. John’s Wood Said, “ I wanted the flat as a buy - to - let investment and the developer’s sales director told me it had excellent holiday rental potential of up to £800 a week in high season. So I bought it with a mortage from a Spanish bank.” After I’d completed the purchase early last year I put the apartment on a holiday rentals website and was overwhelmed with the inquiries from the UK. Very quickly it was booked solid for nine months.” But I was suddenly called to a meeting with the head of the community residents association and he spelt it out in the bluntest terms that the development was unlicensed and we would be reported if we continued to offer our flats as holiday accommodation.”

“We had no idea the development had to be authorised for tourism use and we were all relying on the lettings income to pay of our mortgages, I immediately pulled my apartment of the website and put it up for sale. But this didn’t stop one vindictive neighbour from informing on me to the authorities. Now I’ve been hit with a £20,000 fine - far more than I ever made from the lettings - but I’m hoping to get it reduced on appeal.”

Sabastian Stalter, a property lawyer said, “The rules governing holiday rentals are particularly tough in the most popular tourism areas. So British buyers must be extremely careful if they seek properties for buy - to - let investments because the experience can be a painful one if they have not checked out the pitfalls in advance.”

“Many developers don’t give accurate information about what their properties can be used for and it’s very rare that apartments are licensed for tourism.”

 

[Mr Sparkle]

Prior to buying for letting purposes the tourist licence would be one of the first items for an independent solicitor to check out methinks...

 

[dglav]

The Loma Verde complex as an entire unit had a Tourist Licence. However as it is being sold off in individual units these will not have individual tourist licences. Our Solicitor advised us that in order for the licence to transfer to the newly formed community, certain criteria would have to be met. She wasn't satisfied that this would happen due to the fact that the whole complex isn't being sold off yet, and the owner would be retaining the reception as opposed to the community having control over it. We were happy to purchase without the licence as we would be using it mostly for family and friends who will make a contribution to the running costs.

 

[ainsie]

[broken link removed]

This whole subject is being hotly debated on this forum on and off for a long time now.

Read it and make up your own mind. I personaly would not buy in a residential complex as further down the road the community could ban renting even if it is allowed now. The law it seems actually states that if you rent to family and friends its ok. The definition of "family and friends" seems vague.

Any info needed on buying in Tenerife , just give me a shout by PM and I will gladly give you my opinion for what ever thats worth.