• Inclusion of Cláusula Suelo (Ground Clause) in mortgages provides potential for refunds
• Affected property owners blocked from benefits of falling interest rates
• CostaLuz Lawyers has already won many Ground Clause cases for UK owners

The Spanish property law experts at CostaLuz Lawyers are seeking to alert anyone who owns property in Spain that they may be able to claim refunds on their mortgage payments. The move follows a string of wins in the courts for property owners with a Cláusula Suelo (Ground Clause) in their mortgages.

The Ground Clause was included in many Spanish mortgages. It establishes a minimum interest rate applicable to mortgage repayments, meaning that variable rate or tracker mortgages never saw the benefits of falling interest rates filter through to the mortgage holders. In many instances, the banks issuing the mortgages did not clearly explain the implications of the Ground Clause. This has created the potential for mortgage holders to claim back the overpayments.

“While variable rate and tracker mortgages are linked to the Euribor rate, the inclusion of Cláusula Suelo meant that the interest rate could never drop below a much higher rate fixed by the bank. This has seen many mortgage holders paying several percentage points more in interest than they should have been over the past decade and more. We are keen to alert them that there is hope for having Ground Clauses removed from the mortgages and for reclaiming the overpaid interest.”

Keith Rule, CostaLuz Lawyers

When the markets crashed at the end of 2008, so did the Euribor rate. This meant that, from early 2009, mortgage holders should have been paying much lower interest. However, those with a Ground Clause in their mortgage weren’t able to do so.

CostaLuz Lawyers reports that the existence of the Floor Clause implies a surplus in mortgage repayments, in general, of around €200 per month. On a 130,000€ mortgage taken out in 2006 over 30 years at Euribor + 1%, with a 4.25% Ground Clause, the mortgage holder would be due a refund of overpaid interest of around €20,000. Successful cases also see the Ground Clause removed from the mortgage, meaning that the property owner can also benefit from lower monthly payments directly linked to the Euribor rate in future.

“Both the Spanish and European courts have ruled that banks must refund all the overcharged interest since the very first application of the Ground Clause, together with default interest and legal costs. This applies even where mortgage agreements have passed from bank to bank during mergers and acquisitions.”

Keith Rule, CostaLuz Lawyers

Banks are given three months to respond to initial Cláusula Suelo claims brought against them. This means that some property owners may receive refunds without going through the courts. Where banks refuse to engage, however, the CostaLuz Lawyers team is ready and waiting to take appropriate legal action.

The firm has already won nearly 850 claims (in relation to Cláusula Suelo and other legal matters) from Spanish property developers and banks. In the process, it has helped more than 1,500 clients from the UK and Ireland, as well as Spanish and European nationals. Now, by publicising the Ground Clause scandal more widely, the firm hopes to help even more property owners reclaim what is rightfully theirs.

For more information, please contact CostaLuz Lawyers’ UK office on +44 1908 635 111 and speak with Keith. To speak with Maria in the Spanish office, call +34 956 092 687 or you can visit www.costaluzlawyers.es

• Terraces with golf, marina and sea views await those looking to ditch the commute for good (Taylor Wimpey España)
• 24% of employees now working remotely (ONS)
• Longer-term benefits of remote-first approach now more widely understood

As the UK ploughs on with the battle against COVID-19, the government has once more asked that all those who can work from home do just that. The pandemic has made families re-evaluate their home environment like never before, particularly in relation to space in which to work and outdoor space. Now, leading Spanish home builder Taylor Wimpey España is providing the ideal solution to both, with selected properties offering spacious terraces with stunning views as the ideal spot from which to work.

“Even once the pandemic is under control, it’s likely that some of the lifestyle changes it brought about will stick. Many people’s eyes have been opened to how easily they can work from home and the lifestyle benefits that doing so can bring. As such, we’re catering to the needs of home-based workers not just for now but also for the longer-term.”

Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España

The waterfront homes at Pier are a case in point. The two- and three-bedroom apartments provide east and south-east facing terraces with marvellous views of the prestigious Marina de Sotogrande. The spacious terraces are ideal for sitting outdoors with a laptop, working from home in an absolutely stunning setting. The key-ready homes are priced from €342,000 plus VAT. Would-be buyers can take a virtual tour to discover Pier for themselves.

The Office for National Statistics reported on 1 October 2020 that just 62% of people were working at their normal place of work, with 11% furloughed and 24% now working remotely. It’s unlikely that that quarter of the working population will all be keen to start commuting again when the time comes, particularly when many will have proved how productive they can be when based from home.

This opens up the idea of working remotely from locations other than home, once lockdown and travel restrictions ease. After all, a stable internet connection, a decent mobile phone signal and a laptop are all that many people now need to do their jobs effectively, regardless of their location. With Spain being only an hour ahead of the UK, working from there fits perfectly with working for a UK company.

“With the technology available to us now, there’s no longer the same need to be tied to a desk from 9 to 5. Increasingly, companies are understanding the benefits of remote working not just for their employees but for themselves. A remote-first approach can mean running a more cost-efficient operation with a lower carbon footprint thanks to the need for less office space and a reduction in employee commuting.”

Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España

What better place, then, than a terrace in the Spanish sunshine as a base for working from home? At Emerald Greens, the terraces look out over the verdant greenery of Cadiz’s renowned San Roque Club. Starting from €296,000 plus VAT, the two- and three-bedroom apartments and penthouses, with their communal pools and landscaped gardens, offer a stark contrast to a life of urban commuting. Embracing open plan and ‘total living’ concepts, the homes have spacious living areas that flow into large, open terraces. Meanwhile the surrounding corn oak meadows are offset beautifully against views that stretch out over the golf course down to the sea.

For more information, please contact Taylor Wimpey España on 08000 121 020 or visit https://www.taylorwimpeyspain.com/. Those outside of the UK can call 00 34 971 706 972.

• Taylor Wimpey España highlights different buyer behaviours
• Still plenty of liquidity in market
• Limited travel, rather than money, is major barrier this time around  

The global financial crash wreaked havoc on many countries’ property markets, with the INE reporting a 36% drop in Spanish property prices over the following seven years. With local and national lockdowns in place across the world, many predicted that the same would happen as a result of the COVID-19 pandemic. However, leading Spanish home builder Taylor Wimpey España, which has been building homes successfully in Spain for over 60 years, reports a very different experience this time around.

“We’re seeing substantially different market dynamics as a result of the COVID-19 crisis than those that occurred due to the global financial crisis. Having operated through the 2006/07 crash and the difficult years that followed, we were braced for a similar experience this time around, but it hasn’t played out in the same way.”

Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España

When the world’s economy stumbled back in 2006/07, Taylor Wimpey España saw a string of cancellations as buyers but this hasn’t happened with the pandemic. As the company’s Marc Pritchard points out, families who are buying off-plan homes don’t expect to use them immediately and so are still happy to progress their purchases. And there is still plenty of liquidity in the market. Wealthy buyers are, quite simply, not letting the pandemic interfere with their long-term plans. They can buy off-plan now, then use their property once it is complete, by which time matters such as COVID-related travel restrictions will no longer be an issue.

If anything, it is the travel restrictions that are the greatest challenge with this particular crisis, as they are preventing the initial viewings that are so key to the holiday home purchase process.

“The challenge with this crisis has been to put virtual viewing arrangements in place that get as close as possible to that in-person viewing experience. We’re doing all we can to turn that challenge into an opportunity, though, with live mobile tours of our show homes and also of our key-ready homes.”

Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España

Botanic virtual tour

In the Costa del Sol, for example, potential buyers can tour the last few key-ready homes available at Grand View and Botanic. Those who want to ensure that they don’t miss out on the last chance to buy at the two stunning developments can take mobile tours with Taylor Wimpey España team members, who are on hand to answer questions and explore the property at the buyer’s pace.

Grand View is located at the prestigious La Cala Golf Resort in the valley of Mijas. The homes run alongside the resort’s Asia and America golf courses, opposite the Club House. With large terraces and spectacular views, the two- and three-bedroom properties have been popular both with golfers and with those looking for the natural serenity that such surroundings provide. Prices for the remaining few homes start at €290,000 plus VAT.

Botanic, meanwhile, is a unique development at La Reserva de Alcuzcuz. The buildings have been created around the principles of sustainability, ecology and bioclimatic architecture, with gardened areas forming a major part of the design. The development respects the variety of species and indigenous trees in the area, with vertical gardens and green corridors enveloping the residential buildings in a unique natural environment. Construction has taken place at different ground levels to provide an exceptional panorama of the surrounding natural environment. Botanic’s three-bedroomed homes are priced from €430,000 plus VAT.

For more information please contact Taylor Wimpey España today on 08000 121 020 or visit https://www.taylorwimpeyspain.com/. If you reside outside of the UK you will need to call 00 34 971 706 972.

• Taylor Wimpey España offering live mobile show home visits
• Tourism spending unlikely to hit pre-pandemic levels before 2024 (McKinsey)
• Reputation and trust now more important than ever

The global travel and tourism industry continues to feel the pressure of the COVID-19 pandemic. McKinsey projects that international tourist arrivals will drop by 60-80% this year, with tourism spending unlikely to return to pre-pandemic levels until 2024. So where does this leave those building second homes?

According to leading Spanish home builder Taylor Wimpey España, it’s a question of adapting to the new normal and connecting with holiday home buyers in new ways. The company now provides pre-bookable live visits of its show homes, with staff using mobile devices to give prospective buyers the tours that they can’t make in person.

“Seeing photographs and videos of a holiday home online is not the same as visiting the property. Mobile tours aren’t quite the same either, but they are vastly closer to that in-person experience. They provide the buyer with the chance to view the property at their own pace and to ask questions of staff while they do.”

Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España

Buying a second home without seeing it in person remains a bold move. This is where the developer’s reputation comes into its own. With over 60 years’ experience of building homes along the coast of mainland Spain, as well as Mallorca and Ibiza, Taylor Wimpey España has the kind of credibility that engenders the trust needed to buy a second home during the pandemic.

The company is also delivering just the kind of homes that pandemic era buyers are seeking. At Green Golf in Estepona (Malaga), for example, buyers can purchase spacious, light-filled homes surrounded by the gently undulating course at Estepona Golf. Fresh air and natural greenery abound, providing a serene escape from the pressures of modern life and an attractive location to socially distance or even lock down.

Available from €299,000 plus VAT, the frontline golf, southwest-facing townhouses include three bedrooms, three bathrooms and large terraces. The private gated community has communal gardens and pools, all integrated into the spectacular surrounding scenery – and just 3km from the nearest beach.

For more information please contact Taylor Wimpey España today on 08000 121 020 or visit https://www.taylorwimpeyspain.com/. If you reside outside of the UK you will need to call 00 34 971 706 972.

• “The importance of having the right property has never been greater” (Taylor Wimpey España)
• Spain in top 3 locations for post-Covid move overseas (Knight Frank)
• Degree of liquidity in market creating vastly different scenario from 2006/07 crash

Knight Frank’s Global Buyer Survey 2020 found that Spain was one of the top three locations for those considering a post-Covid-19 move overseas. Now, leading Spanish home builder Taylor Wimpey España has shed new light on the kinds of properties that new buyers are seeking.

“Buyers are, understandably, looking for homes with gardens and with more outdoor space. The potential for another lockdown has made private outdoor space infinitely more desirable. What’s interesting is that buyers aren’t reining in their budgets in order to achieve this. In fact, there’s a huge degree of liquidity in the market, despite Covid’s impact on the global economy.”

Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España

Those with the means to buy a new home, it seems, are sparing no expense when it comes to getting the space they need, and that applies indoors as well as outdoors. The Taylor Wimpey España team reports that more indoor space is also being sought, with buyers wanting to ensure they can work from home in comfort.

In terms of property types, it is townhouses outside of cities that are attracting the most attention. Buyers are seeking out locations with open spaces and natural scenery, with golf properties being particularly prized.

The southwest-facing townhouses at Green Golf, at Estepona, Malaga, are precisely the kind of homes that meet post-Covid buyers’ needs. Available from €299,000 plus VAT, the homes are bright and spacious, inside and out. The three bedrooms provide scope for one to be used as an office, while the large terraces would make another period of at-home confinement far more bearable. The private, gated community also has communal gardens and pools, with being on-site at Estepona Golf providing plenty of options when it comes to keeping fit and healthy.

Both those buying main residences and those buying holiday homes have re-evaluated what it is that they want from their property in Spain, just as families have around the world. In terms of second home buyers, Knight Frank reports that over 25% of those who contributed to its Global Buyer Survey are more likely to buy a second home as a result of the pandemic.

“Buyer requirements have experienced the biggest shakeup in years, which is pushing interest in larger properties with outdoor space up significantly. Back in 2006/07, we saw buyers’ budgets trimmed significantly and experienced a wave of cancellations as the financial crisis struck. What’s different this time around is that buyers are, on the whole, going ahead with their purchases, despite the economic backdrop. The importance of having the right property has never been greater.”

Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España

For more information please contact Taylor Wimpey España today on 08000 121 020 or visit https://www.taylorwimpeyspain.com/. If you reside outside of the UK you will need to call 00 34 971 706 972.

• British and Spanish website visitors leading interest in holiday homes (Taylor Wimpey España)
• Leads up 55% across May to August, compared with 2019
• Digital viewings and video tours helping to fuel demand

Leading Spanish home builder Taylor Wimpey España has reported significant growth in the number of enquiries it is receiving for its properties in Spain, Mallorca and Ibiza. Leads were up by 21% year to date for August 2020 versus August 2019, while the May to August 2020 period saw a leap of 55% compared to the same months the year before.

When it comes to web visitors, it is British and Spanish interest that is growing most rapidly.

“We’re seeing a notable increase in pent-up demand for second homes in Spain. Uncertainty and quarantine restrictions are doing nothing to curb Britons’ interest in owning a sun-kissed Spanish retreat. Indeed, the pandemic has caused many people to think long and hard about what’s important to them and where they want to spend their time.”

Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España

In response to the surge in demands, Taylor Wimpey España is offering digital viewings and newly released video tours of its second homes.

At Green Golf in Estepona (Malaga), for example, buyers can now explore the bright, spacious frontline golf properties via an online drone tour, while listening to Taylor Wimpey España share details of the development over the phone. The digital tour of the three-bedroom/three-bathroom townhouses, which are available from €299,000 plus VAT, allows buyers to see everything from the on-site pool and stunning golf course views to the beautifully presented show home.

While the tourism industry in Spain, along with that of most of the rest of the world, has been hit hard by the global health crisis, British families are clearly not giving up on their dreams of owning property there.

“The impressive rise in interest is a good indication of what’s to come, post-pandemic. As such, we are not only launching new developments – such as the lovely Harmony apartments, penthouses and duplexes at La Cala Golf – but also searching for new sites along the Costa del Sol and Costa Blanca, as well as in Mallorca and Ibiza.”

Marc Pritchard, Sales and Marketing Director of Taylor Wimpey España

Until travel restrictions are lifted, the Taylor Wimpey España team will continue to deliver digital viewings to the growing number of Britons who are requesting them.

For more information please contact Taylor Wimpey España today on 08000 121 020 or visit https://www.taylorwimpeyspain.com/. If you reside outside of the UK you will need to call 00 34 971 706 972.