For immediate release
3rd July 2017
EU Property Solutions discuss options available to UK homeowners with mortgage shortfalls in Spain
EU Property Solutions, a firm dedicated to helping those with foreign property with negative equity, has extended its expert advice to UK homeowners abroad who find themselves ‘trapped in the sun’. With the recession of 2008 bringing down property prices, many overseas buyers found themselves in negative equity. European mortgage shortfalls have resulted in many Brits paying monthly instalments for a holiday home that feels more like a prison than escape to the sun. EU Property Solutions is helping those who find themselves in this situation that help is at hand and that there are other options.
“It’s tempting to jump at the first promising solution you see,” James Bell, Director of EU Property Solutions, said. “However, homeowners should look through all their options, or they will find their situation getting worse. The default course of action is often to continue paying a mortgage for a property that is no longer wanted to avoid problems overseas but, this can lead to financial trouble here in the UK. We’d advise anyone in this situation to take stock and source expert advice – there are often more sustainable solutions.”
EU Property Solutions has created a list of several options for any UK buyers who previously bought property in Spain and are now facing mortgage shortfalls. They warn against simply handing back the keys and walking away; although this may look like an attractive choice, Spanish lenders will pursue outstanding shortfall debt through the courts. In the worst-case scenario, this can even cause holiday home owners to lose their home here in the UK.
If buyers have ready cash, one option is to sell up quickly and pay off the negative equity with other funds. Many do not have the money, however, to make this a reality.
Another route is to liaise with the original lender. However, things may have changed since the mortgage was agreed, in the shape of the bank, its finances or lending policy. The prospect of dealing with a lender in another country can also be overwhelming.
EU Property Solutions recommends that buyers who find themselves in this position speak to expert consultants. They may have links to foreign lenders that the individual buyer does not, and can even potentially get the mortgage shortfall written off. EU Property Solutions have several case studies where they successfully negotiated a mortgage shortfall write-off. In one case, they freed their pension-age clients of a €258,000 mortgage debt.
As the only firm of its kind in the UK, EU Property Solutions has specialist teams in London, Northern Ireland and Spain. It offers completely impartial advice without language barriers.
To find out more visit Contact us today.