Perini Finance & Property §34i GewO · Mortgages in Spain & Portugal
Case report · Costa Blanca

Practical case Costa Blanca: House in Benissa – Buying property after a larger inheritance

The buyer owned an engineering firm; his wife worked as a qualified psychologist with her own practice. The inheritance significantly improved the equity situation.

Key figures

At a glance

  • Purchase price: 1.185.000 €
  • Financing required: 829.500 €
  • Equity: 635.550 €

Anonymised case figure · not a binding statement for other projects · §34i GewO

Typical, anonymised case. Names, places and individual financing figures have been adjusted to protect privacy. The process reflects a typical advisory situation for non-resident financing in Spanien.

Using assets sensibly, without investing everything in a property

A couple from Augsburg had long wished to live permanently on the Costa Blanca. After numerous stays between Moraira and Calpe, the decision finally fell on Benissa. The quiet residential setting, the proximity to the coast and the established environment matched their ideas exactly.

Shortly before the start of the property search, the buyer inherited the family home together with his sister. After the sale of the property, a considerable sum was available that was to be specifically invested in buying the new home.

Initial situation

The buyer owned an engineering firm; his wife worked as a qualified psychologist with her own practice.

The inheritance significantly improved the equity situation. Even so, neither wanted to invest all of the inherited assets in the property. Part was to remain as a long-term financial reserve and for retirement provision.

They were looking for a modern house with a garden, a pool and enough room for family and friends.

Financing overview

  • Purchase price: 1.185.000 €
  • Additional costs: 154.050 €
  • Renovation (heat pump, photovoltaics, pool technology and garden): 126.000 €
  • Total investment: 1.465.050 €
  • Equity: 635.550 €
  • of which from inheritance: 390.000 €
  • Financing required: 829.500 €

The financing share corresponded to around 70 % of the purchase price.

The challenge

The house was well-kept and immediately usable. Even so, the buyers planned an energy modernisation to reduce running costs over the long term.

In addition, the use of the inherited assets was to be carefully planned. The aim was not to use as much equity as possible but to preserve a balanced asset structure.

Analysis

Before the purchase contract was concluded, all modernisation costs were calculated in detail and included, together with the purchase price and additional costs, in the total investment.

It was then examined which part of the inheritance should sensibly be used as equity. Long-term financial security was central here.

The buyers deliberately chose to keep part of the inherited assets as a reserve and investment.

Financing solution

The financing was set at around 70 % of the purchase price.

The additional costs and a considerable part of the purchase price were paid from own funds.

The planned modernisation measures were already fully part of the original financing planning. This meant all work could be carried out immediately after the transfer of ownership.

Outcome

Once the modernisation was complete, the house fully matched the buyers' ideas.

The energy improvements reduced the running energy requirement, while at the same time a considerable part of the inherited assets remained preserved and can continue to be used flexibly.

What other buyers can learn

An inheritance often opens up new possibilities in a property purchase. Even so, it is not always sensible to invest all of the assets in a property. A balanced combination of equity, financing and a liquidity reserve creates long-term stability.

FAQ

Frequently asked questions

Can inherited assets be used as equity?
Yes. An inheritance is often used to increase the equity share in a purchase. Traceable documentation of the funds is important.
Why were the modernisation costs planned before the purchase?
So that all work could be carried out immediately after the transfer of ownership and no later financing was necessary.
Why was part of the inheritance left untouched?
The buyers wanted to preserve financial reserves and keep their assets broadly positioned.

Conclusion

Buying a house in Benissa shows that a larger inheritance can ease the path to the desired property. What is decisive, however, is not the amount of equity but its sensible use. Anyone who combines modernisation, asset planning and financing early creates a stable basis for the new centre of life on the Costa Blanca.

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Anonymised individual case, not a binding statement for other projects · Siegfried Perini, BAFA-notified for the cross-border activity of the owner Olga Nikushkina · §34i GewO · no tax or legal advice · no financing commitment; conditions depend on creditworthiness, loan-to-value and bank

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