Mercers launches Rent2Buy for Spanish property market

Jason Báez Sulsona, Property Consultant for Mercers’ Jerez office, said: "The two key stumbling blocks for today’s Spanish househunter are the poor pound-euro exchange rate and the bank’s inability or unwillingness to lend. However, price-wise, the climate is right for negotiating an incredible deal. This leaves the purchaser in a dilemma which could be easily solved by a Rent2Buy scenario. The househunter gets their home and the vendor some welcome cashflow."

With Mercers’ concept, the purchaser settles on their ideal home and negotiates a fair sales price with the vendor which is then locked-in until the end of the agreed rental period. After passing across a 10 to 15% downpayment, the purchaser can then access all the usual legal rights of use and enjoyment of the property for 12 – 24 months while paying market value monthly rent. At eventual completion both the downpayment and the rental fees are credited against purchase price.

Báez Sulsona said: "There is no loser with this arrangement. The assumption is that both the exchange rate and the lending environment will improve in the future so delaying completion clearly suits the purchaser. House prices will also begin to rise again so locking-in the price today is another big bonus. Meanwhile the vendor secures a buyer in a troubled market, cashflow to cover mortgage payments and the peace of mind of having a lived-in home rather than one exposed to deterioration or delinquency. And, should the purchaser pull out of the deal down the line, the vendor keeps the downpayment and rental fees eliminating all risk. For many people this will become the new way to buy a Spanish home."

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