Practical case Mallorca: Family house in Alcúdia – When the sale of the previous property is part of the financing
Both spouses had secure incomes and a debt-free property in Germany. Its market value was significantly above the equity still needed for the purchase on Mallorca.
In short
What was this case about?
Both spouses had secure incomes and a debt-free property in Germany. Its market value was significantly above the equity still needed for the purchase on Mallorca.
Does the previous property have to be sold before buying in Spain?
Not necessarily. The purchase can often be sensibly structured even if the sale takes place at a later point.
Why should modernisation costs be taken into account immediately?
Anyone who factors in renovations already before the purchase creates planning certainty and avoids later financing gaps.
Who arranged this?
Perini Finance & Property — German-speaking, operating under the §34i GewO licence held by Olga Nikushkina, Portugal through a locally licensed intermediary; 15 to 20 banks approached per case. First call free; on completion 1 % of the loan amount.
€695,000 price, €487,000 loan, €35,000 for modernisation
- Purchase price: 695.000 €
- Renovation: 35.000 €
- Financing required: 487.000 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
Property for sale in Alcúdia: sell first or buy first?
A family from Baden-Württemberg wanted to move their centre of life permanently to Mallorca. The two children were already adults, so the wish for a quieter life by the sea became more concrete. They were looking for a detached house in Alcúdia – with a garden, a pool and enough room for visits from family and friends.
A suitable property was found quickly. However, part of the equity was still tied up in their home in Germany, which was only to be sold after the move.
The German house is only being sold a few months later
Both spouses had secure incomes and a debt-free property in Germany. Its market value was significantly above the equity still needed for the purchase on Mallorca.
As the sale was to take place only some months later, however, the financing had to bridge this period sensibly.
€820,350 in total, €333,350 of equity at the purchase
- Purchase price: 695.000 €
- Additional costs: 90.350 €
- Renovation: 35.000 €
- Total investment: 820.350 €
- Equity at purchase: 333.350 €
- Financing required: 487.000 €
The financing share corresponded to around 70 % of the purchase price.
Buying on Mallorca before the family home is sold
The biggest challenge lay not in the creditworthiness but in the timing. The family wanted to buy the house on Mallorca before the home in Germany was sold. At the same time, losing the desired property due to the still-outstanding sale was to be avoided.
The planned modernisation too – new air-conditioning units, energy improvements and the renewal of the kitchen – was to be implemented immediately after the transfer of ownership.
Sale proceeds valued and the timeline worked out in advance
First the expected sale proceeds of the German property were realistically assessed and the entire timing was planned.
The purchase price, additional costs and all modernisation costs were then considered together. This created a complete overview of the actual capital requirement already before the contract was concluded.
Decisive was that enough own funds were available for the additional costs and part of the purchase price, while the later sale proceeds were to additionally strengthen the long-term asset planning.
70% loan, later proceeds free for reserves or repayment
The financing was built at around 70 % of the purchase price.
The additional costs and part of the purchase price were paid from existing equity.
The modernisation costs were fully included in the overall planning from the start, so the work could begin immediately after handover.
After the later sale of the German property, additional equity was available that could be used flexibly for reserves or a partial repayment of the financing.
The chosen house secured, the German sale unhurried
The family did not have to rush the sale of their house in Germany and could at the same time secure their desired property in Alcúdia.
Once the modernisation was complete, the house matched their own ideas exactly. A few months later, the permanent move to Mallorca took place without financial time pressure.
The timing between two properties can be planned
Many buyers already own a property in their home country. This does not have to delay the acquisition of a property in Spain. Decisive is careful planning of the timing and a realistic assessment of the available equity and later liquidity.
Frequently asked
Does the previous property have to be sold before buying in Spain?
Why should modernisation costs be taken into account immediately?
Is a high property value in Germany an advantage?
Alcúdia family house financed alongside the sale of a property
Acquiring a detached house in Alcúdia shows that property financing often comprises more than the purchase price alone. Anyone who coordinates the sale of an existing property, the use of equity and necessary modernisation early can shape the move to Mallorca much more calmly.
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A similar situation in Spain? Let's talk.
Every financing in Spanien is an individual case. In a free initial consultation I will tell you honestly what is feasible and which bank fits.
Book a free consultationAnonymised individual case, not a binding statement for other projects · Brokerage under the §34i GewO licence held by Olga Nikushkina (D-W-132-ZUCB-95); Siegfried Perini registered as directly involved person (§11a GewO) · no tax or legal advice · no financing commitment; conditions depend on creditworthiness, loan-to-value and bank