Nerja: Financing a villa with a sea view for a permanent centre of life
A couple from Freiburg, both long active as pharmacists, planned complete retirement in Spain. They were not looking for a representative luxury property but for a high-quality house with enough room for family and friends and a low-maintenance plot.
At a glance
- Purchase price: 986.000 €
- Renovation: 45.700 €
- Financing required: 670.100 €
- Equity: 479.900 €
Anonymised case figure · not a binding statement for other projects · §34i GewO
Living where Andalusia has preserved its original character
Nerja is one of the most popular places to live in the eastern part of the Costa del Sol. The town combines the charm of an established Andalusian coastal place with an excellent quality of life, short distances to the sea and good infrastructure. Anyone who wants to move to Spain permanently and is looking for a quieter alternative to the large coastal cities often finds ideal conditions here.
This practical case shows how acquiring a villa for long-term owner-occupation can be financed in a structured way.
Initial situation
A couple from Freiburg, both long active as pharmacists, planned complete retirement in Spain. They were not looking for a representative luxury property but for a high-quality house with enough room for family and friends and a low-maintenance plot.
After several viewings they chose a villa in a quiet residential setting above the centre of Nerja. Decisive were the unobstructable sea view, the good accessibility of the town centre and the solid build quality.
Financing overview
- Purchase price: 986.000 €
- Additional costs: 118.300 €
- Renovation: 45.700 €
- Total investment: 1.150.000 €
- Equity: 479.900 €
- Financing required: 670.100 €
The challenge
The sale of the previous property in Germany provided sufficient equity. Even so, the buyers deliberately wanted to keep part of their assets as a reserve for retirement.
In addition, the villa was to be functionally modernised before moving in, without changing the original character of the house.
Analysis
The property was in well-kept condition and immediately habitable. The planned measures therefore focused on comfort, energy efficiency and accessibility.
Planned were the modernisation of the main kitchen, the renewal of a bathroom with a level-access shower, new windows with improved thermal protection, modern air conditioning with individual room control and the installation of electrically operable shading systems on the south-facing terraces.
As all work was defined before the purchase contract was concluded, it was fully included in the total investment.
Financing solution
The financing was set at around 68 % of the purchase price. This kept a considerable part of the equity available, while at the same time achieving durable financing.
Alongside the purchase price, all acquisition costs and the planned modernisation measures were financed together. Additional financing steps after the purchase were therefore not necessary.
Outcome
Once the work was completed, a comfortable residence was created that is optimally tuned to the buyers' needs in retirement. At the same time, sufficient financial flexibility remained for travel, leisure and unforeseen expenses.
The buyers were able to realise their permanent move to Nerja as planned.
What other buyers can learn
Even if a property is already in good condition, targeted modernisation before moving in is often worthwhile. Comfort improvements and energy measures can be implemented much more easily as long as the house is not yet permanently occupied.
Anyone who takes these costs into account already at the acquisition benefits from realistic and complete financing planning.
Frequently asked questions
Why is Nerja so popular among owner-occupiers?
Can age-appropriate conversions be taken into account directly?
Why is financing used despite sufficient equity?
Which properties are especially in demand in Nerja?
Conclusion
Nerja offers ideal conditions for people who want to spend their retirement or a new chapter of life in a quiet coastal town. Financing that takes the purchase price, additional costs and all planned modernisation into account from the start creates the basis for a long-term relaxed start to life on the Costa del Sol.
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To the case report →A similar situation in Spanien? 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 · 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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