What is a problematic property?
We define problematic property as a property which is in negative equity and causing a serious strain on your finances. Negative equity is when a property is worth less than its mortgage. For example, if you bought a house for £250,000 with a mortgage of £230,000 and now your home is worth £200,000, you are in negative equity.
I’m in negative equity abroad – what now?
If you want to sell your foreign property, negative equity can at first seem like a huge barrier. It is often very difficult to sell, as you have to get your mortgage company’s permission, and they want to get all of their money back.
If you become badly in arrears, your mortgage company may hire a UK-based debt collection company that could put your home in danger of being repossessed. Often, people feel like they are stuck paying out for foreign homes they can’t visit just to avoid hassle in the UK.
You don’t have to be lumbered with a financial burden in another country draining your money away, however. EU Property Solutions has a wealth of experience in helping people just like you.
Are there high levels of negative equity in Europe?
Everyone was hit hard by the recession of 2008. Spain has seen some quarter of a million homes repossessed over the last nine years. Although this means your case probably won’t be seen in a court quickly, it also means foreign mortgage lenders are keen to get their money back. Some have even sold these loans to private equity companies, who want to make a profit.
Are there different rules for different countries?
Depending on which country you bought your property in, different rules will apply. Not only do these countries have their own laws and regulations, mortgage lenders may well have changed shape since you took out your mortgage with them. It is imperative that you get expert advice if you want to solve your problematic property: EU Property Solutions work across the world and have contacts in plenty of different banks and lenders, saving you the hassle.
Will Brexit impact me?
Nobody can tell yet what impact Brexit will have on the global financial market, especially in regards to property. There are likely to be more rules and stricter tariffs, and foreign banks will likely still be able to pursue their debts in the UK. If you want to rid yourself of negative equity, why wait? Speak to our expert advisers today.