Words: Ashley Rigg
Published: 19th October 2010
*Third largest UK agent does property deal with Spanish bank
Connells, the third largest UK estate agency group, has struck a deal to sell discounted properties through its extensive network of high street branches.
The company has set up a partnership with Mediterranean CAM, the property arm of the Spanish savings bank CAM.
Connells will initially offer 3,000 of the banks properties throughout mainland Spain and the Balearic and Canary islands. Properties on offer will include both resale and new build but all units will be fully complete, with no off-plan on offer.
Balance sheet offload
CAM bank is offering Connell’s clients a compelling deal, no doubt in an effort to offload properties in negative equity from its books.
Connells clients will not only be offered 90% mortgages in a tight credit market but will also have the option of renting for up to seven years before purchase. If the option is exercised during the first two years, all the rent paid can be deducted from the purchase price.
The properties will be offered through over 100 Connells and Sequence branded branches across the UK.
Stuart Flavell, Connells chief executive, comments:
“Now is a great time to purchase a Spanish property and we believe there is an increasing number of people looking to buy in this market.
“Our customers can now purchase a property abroad, safe in the knowledge that they have the backing of a recognised and respected UK estate agent, together with guidance and advice from a well-established and successful Spanish Bank.”
Alfredo Millá Ferrero, international commercial director for CAM Mediterranean, said: “The Spanish market has a lot of exceptionally good-value property to offer the UK market at the moment as a consequence of the need for Spanish banks to reduce the volume of properties on their balance sheets.”
The deal appears to be a good one for both sides. Although it is not necessarily good news for smaller agents on the Spanish Costas selling into the UK market, it is a positive sign that the Spanish banks have begun working with agents
rather than competing against them.
Source: Global edge
User Comments
Interesting comments. CAM bank have properties on our golf resort and the prices are well below the original offer price, and around half those I've seen in Portugal and Cadiz resorts.
Having a good offer from a bank is one thing but clients need to see the properties and organise a good solicitor, and Connels are in UK not Spain!
Malcolm Maxwell,
Life on the Luz
The "rent to own" side can work well, but as with all these things, there is still the caveat emptor to be applied.
On the whole, prices do appear to be a bit better than they were, and yes, the banks are doing what they can, but it will still be down to buyers to check out whether they are getting the deal they believe they are.
As has been said, it will be interesting to see the quality of the properties made available to Connells, will it be most of the inventory, or the remainder they cannot shift?
Peter Mindenhall,
IPINGlobal (Global Prospects SL)
For several years now CAM and other banks have been trying to offload the repossessed properties by means of different channels. They all failed, mainly because a bank has no clue about real estate and secondly and most important, as they have no clue, most of the properties they own are the worst and overvalued of every complex. It is a hard fight for small agents when CAM automaticly offer 90% mortgage on their properties and not on others. All this is just an other financial trick to recover the large amounts they hat to deposit with the Spanish national bank. The smaller agents have to "walk tall" as they will always have their "niche" market. They sould be aware though, that when listing properties they are the one who have to establish the realistic price and not the seller. This will give proof of professionalism. If not in agreemend with the seller, than wish him goodluck and walk out.
Fred ,
ELITE Inmobiliaria
On the face of this it sounds great!
However has Cam Bank gave mortgages of up to 125% to any man and his dog 5-7 years ago with very little checks and no official bank vaulation!
The propertis that Cam are now trying to sell due to repossession are greatly over valued in the current market. ie an apartment in Villamartin, Costa Blanca Spain (2 bed, 2 bath) real valuation now 80k, Cam will have this for 120k - 170k.
For this amount of money now you can pick up a detached with private pool. It seems that Cam Bank are trying very hard to get rid of bad debt properties with good publicity, however all buyers now are concious of prices due to the power of the search engines. We could sell 90% of Cam Banks Repo's on the Costa Blanca very quickly if they reduced the prices to reflect the actual market in 2010. Bad desicion mortgages are the fault of the bank and the bank alone should take responsibility for this,not new buyers.
John,
Costa Blanca Live
One of the larger Spanish based UK agents had a similar agreement a couple of years ago with the same Bank and they were flooded with enquiires in the begining ...... then once word got around as to the 'questionable quality' and highly debatable 'bargain' on offer the deal just fizzled out.
I think with as many outlets as Connells has to promote this they will undoubtadly do some business, but i think once they get a good look at what Cam are giving them to play with (or more to the point their clients) then it may not be so appealing?
Watch this space.
Rob,
Deal Hunter Spain
I wonder what other partnerships will emerge over the coming months and 2011?
It will be interesting to see the quality of the properties offered through this partnership. Perhaps this synergy between banks and big estate agents will spell the end for some of the smaller agencies.
Again it really does depend on the quality of stock these banks are offloading.
Mark,
First Property Choice