New building purchased in the Sagrada Família neighbourhood using the right of first refusal

Housing Glossary

You will find information here on all topics relating to housing in Barcelona

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Accrued interest

The interest applied as a penalisation when the debtor does not comply with repayment obligations. The amount must be established in the contract.

Active supermortgage

This allows the client to choose their loan's benchmark index (MIBOR at three months, six months or a year) so that payment can benefit from lower interest rates sooner.

Adaptable instalment

Characteristic of UCI superloans that allow the borrower to not pay one instalment a year for the first three years if there are problems due to holidays, extraordinary expenses, etc.

Advanced cancellation fee

A commission arising from the financial risk involved in the advanced cancellation of an operation. The applied commission compensates the financial institution for its financial losses.

AEDE

Direct state aid for paying the deposit on a property.

Affordable housing

Group of social housing or dwellings from social renovation projects that are sold or rented at below-market prices.

Affordable rent

The cost of renting these dwellings is below market prices after being included in operations concerning the rented flat pool, social renovation or social housing promotions.

Amortisation

Payment made to repay a loan.

Amortisation period

The duration of the loan. The contract establishes the date of the first and last payments. The longer the period, the lower the payments are, but the higher the interest. You therefore pay more in the end. The monthly instalment should not exceed 35% of your net income.

API

Estate agent. A qualified professional who acts as an intermediary between the two interested parties to facilitate the signing of a real estate contract, which can be a rental agreement, a sales agreement or another similar contract. They usually charge a percentage of the sales price as compensation or commission.

Applicant

A citizen who makes a registration application to the Barcelona Social Housing Applicants Registry, and who represents the other members of the dwelling unit included in the application.

APR

Annual Equivalent Rate. Effective annual cost of the mortgage in terms of interest, commissions and the repayment period. To compare loans, it is not enough to just look at the lowest APR, you also have to compare the conditions, the repayment period and the distribution of instalment payments.

Arbitri municipal de plusvàlua

Former denomination of the capital gains tax on landed property.

Assessment

The value of a dwelling certified by a specialised assessment company, in accordance with the mortgage market law. This certificate not only indicates the real value of the property, it also serves as a reference for obtaining the necessary financing.

Authorisation

Document in which the owner authorises the tenant to carry out building work in the dwelling's interior.

Located on the corner of C/ València and C/ Sardenya, the building has ten homes and four commercial premises, with three properties currently unoccupied and the rest with rental contracts. This investment of 4.8 million euros, including the cost of the renovation work needed, boosts the public housing pool and will allow those living in the building to keep their homes.

The purchase comes within the context of one of the key elements of the municipal Pla Viure, which is the acquisition policy to enlarge the pool of protected public housing in the city using all possible means. Exercising the right to first refusal in these operations allows the city to gain new housing in dense areas where it is difficult to build new homes. This acquisition also helps to keep rental housing affordable and to protect permanent rentals, preventing the risk of residential exclusion in a neighbourhood where gentrification continues to occur.

The overall cost of the purchase was 4,830,500 euros: 4,017,000 euros for the acquisition and 813,500 euros for the renovation work. This total amount means the cost per square metre comes out at 3,481.19 euros/m2, almost 28% below the average prices of the Sagrada Família neighbourhood, which is 4,817.75 euros/m2.

New by-law on the right to first refusal

The City Council is working on a new by-law to regulate the right to first refusal, which was initially approved in March, the goal being to boost the city’s public housing pool and gain new homes in dense areas with little land available.

Thew new regulation prioritises the purchase of properties with more than ten homes, empty flats and buildings with vulnerable people, with disabilities or in neighbourhoods with a risk a gentrification. In the case of purchases, the maximum cost cannot exceed the average cost of sales for the neighbourhood, deducting the renovation cost where necessary.

The City Council can renounce the purchase of a property and pass the right onto third parties or public housing developers, the legal occupants of the building or private non-profit organisations promoting protected housing. Joint purchases between the City Council and these beneficiaries is also possible, providing the City Council owns at least a third of the property.

The by-law also contemplates a website with access for beneficiary organisations to consult properties subject to the right to first refusal which have not been purchased by the City Council.