Perini Finance & Property §34i GewO · Mortgages in Spain & Portugal
New-build Spain · Timing

Timing: mortgage approval after 24 months of construction

You sign today. The bank decides in two years. Your money sits in between. That time lag is the real risk in a Spanish off-plan purchase — and it can be contained.

Legal notice

Author & regulatory separation. Content author: Siegfried Perini. Mortgage brokerage in Spain and Portugal is carried out under the §34i GewO licence held by Olga Nikushkina (BAFA-notified). This information does not replace legal or tax advice.

The timeline

What happens when

  1. Reservation. Small sum, unit off the market. Refundability is set out in the document — or it is not.
  2. Private contract. This is where it becomes binding. Payment plan, completion date, protection of instalments, financing clause.
  3. Construction, 18–36 months. Instalments against milestones, all from your own funds.
  4. Completion, occupancy licence, land registry entry. Only now does a lendable asset exist.
  5. Escritura. Deed of sale and mortgage deed before the notary — valuation, credit assessment and approval sit immediately before it.
The risk

What can change in two years

Between your signature and the bank's decision, much can move: the rate environment, your income, the bank's valuation practice, the value of the property, lending policy towards non-residents. The bank assesses at the end — on the position as it then stands.

If the approval comes in lower than planned, the buyer must cover the difference from their own funds. If it fails entirely, the private contract still binds, and without an effective financing clause the money already paid is exposed.

Limiting the risk

Four things to settle before signing

  • Financing clause in the private contract: by when approval must be in place, for what minimum amount, how a refusal is evidenced, and what then happens to the instalments paid.
  • Indicative review before the private contract, not after. It is non-binding, but it shows whether the plan holds in your situation.
  • Headroom. Do not calculate to the last euro. If the tasación comes in below the price, lending is measured against the lower figure.
  • Delay clause with a hard right of withdrawal after a defined overrun of the completion date.

The clause itself belongs with a Spanish lawyer. What it must contain to hold up financially is something we discuss beforehand.

FAQ

Frequently asked questions

Can I lock in today's rate for the future?
No. Spanish banks do not guarantee terms for a property that will only exist in two years. Approval follows the valuation at completion.
What is a condición suspensiva?
A condition precedent in the preliminary contract: if financing does not materialise, the contract does not take effect or the deposit must be returned. Without such a clause the buyer carries the financing risk alone.
How long does approval take at the end?
After complete documentation, typically some weeks up to the notary appointment, with statutory waiting periods built into the process. Do not schedule it tightly.
What if construction is delayed?
Delays of a few months are common. What matters is whether the contract gives you a genuine exit after a defined overrun.
New-build & construction phase

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New-build in Spain — let us work through the construction phase together

I check which part of the price has to come from your own funds, what a German bank can raise against existing property, and what the Spanish bank takes on at completion — free of charge, no upfront cost.