2-bedroom flat for sale in El Morche – Near the beach

Flat for sale in El Morche, situated in an unbeatable location just a few metres from the sea. The property is being sold as bare ownership, which allows for a sale price well below market value.

Key features:

Location: El Morche (near the beach).

Facing: North-west (gets afternoon sun).

Layout: 2 bedrooms, 1 bathroom.

Interior: Living room with fitted kitchen.

Exterior: Covered terrace.

Condition: Ready to view.

Very affordable price due to bare ownership. Ideal for investors or those looking to secure a long-term home on the coast.

What is Bare Ownership?

Bare ownership is a legal arrangement whereby the owner of a property transfers the right to use and enjoy it to another person, retaining only the title to the property. This transfer may be for life or for a fixed period.

Key Terms and Conditions

Allocation of Rights:

The buyer becomes the bare owner (owner without the right of use) and the seller becomes the usufructuary (retaining the right of use and enjoyment).

Payment: This may take the form of a one-off initial payment, a life annuity (a monthly payment for life) or a combination of both.

Property Value: The sale price is usually lower than the market value. The discount depends on the valuation, life expectancy (the seller’s age and gender) and whether the usufruct is for life or for a fixed term.

Allocation of Expenses:

-Usufructuary (Seller): Pays for utilities, refuse collection charges and service charges.

-Bare Owner (Buyer): Pays property tax (IBI) and any extraordinary community charges.

-Legal and Tax Requirements

-Ownership: The property must be free of mortgage charges and registered in the seller’s name.

-Notarial Procedures: The transaction must be formalised by means of a public deed drawn up before a notary and registered with the Land Registry to ensure that the usufruct is not lost.

-Taxation (Seller): The sale is subject to personal income tax (IRPF) on capital gains. However, if it is the seller’s main residence and the seller is over 65 years of age, the capital gain is tax-exempt.

-Taxation (Buyer): The buyer must pay Property Transfer Tax (ITP) in the case of a second-hand property, or VAT and Stamp Duty (AJD) if it is a new-build property.