Handed Back The Keys?
It is a common misconception that you can hand back the keys to a problematic property in Spain and hear no more about it. Unfortunately, this isn’t the case and many unsuspecting property owners have fallen victim to this rumour.
If you are thinking about doing this or if you have already handed back your keys, it is important that you get the right advice to avoid the consequences.
For many years, the main solution to Spanish property debt issues was to simply hand back the keys to the lender and forget about the property. This advice was commonly given by misinformed solicitors and other ‘advisors’ who were not qualified to give advice.
We understand how this can seem like the easiest and quickest way to escape from an extremely stressful situation. However, you need to follow the correct process, and if you have handed back the keys without following this process, you could find yourself in an even more difficult situation than before.
“Can I hand back the keys?”
There is not a yes or no answer to this question, and every case is different. There are provisions in Spanish law to allow you to surrender the property. However, you must remember that you can still be held liable for the shortfall.
After you have handed the keys back, the bank will repossess and sell the property. However, your lender will still require you to pay the difference between the sale value and the remaining mortgage. Usually, this sale will be much lower than the market value. Since the property is likely already in negative equity, this increases the amount you owe.
When it is handled properly
The process of handing back the keys to a property essentially allows your lender to take back ownership of your property. In return, your mortgage will be ‘written off’. As a result, your lender will not pursue you any further for the debt.
This involves a high level of preparation, an in-depth understanding of the rules, and difficult negotiations with lenders. As mentioned, if you make mistakes at any step of the process, your mortgage lender will pursue you in Spain and in your home country. You will require someone experienced in the Spanish legal processes and a Spanish legal representative to act on your behalf.
You can read more about the pursual techniques employed by lenders here.
How We Can Help
EU Property Solutions have been aiding those struggling with all forms of property debt for well over a decade. Whether it is a negative equity issue, an interest-only mortgage query, arrears, or any other issues, our team can always assist.
Sometimes handing back your keys may seem like your best option but our team will explore every avenue of your case to ensure we get the best outcome for you.
If you would like a free, confidential case review, please call us on 0330 124 1230 or email [email protected]
Can my solicitor deal with it?
Most of the enquiries we receive relating t the handing back of keys start the same way. With incorrect advice or a local solicitor who promises to fix everything for a low fee. These people have not experienced property debt experts. Inevitably this results in a mistake somewhere that will come back to haunt you.
Is there a way to get rid of my property?
Fortunately, the answer is yes! There are several different ways to get rid of a property that you can no longer afford. These processes do require expertise and experience in this area, however. Trying to do this yourself could actually leave you in a worse position than you started in.
Why Should I Trust EU Property Solutions?
For over a decade, we have been helping people in exactly the same situation you find yourself in. We understand that you have probably been lied to by the bank, developers and estate agents. If our amazing results don’t say enough for themselves, check out some of our testimonials or, call our office and speak to a member of the team. You can even chat with previous clients of ours over the phone!
Why not get in contact?
Like we said, the best way to hear how we can help is to contact us today.
All of our initial calls are confidential and completely obligation-free. So, if you don’t like what you hear, you don’t have to go any further.
If you want a solution to your property debt issue, click the button to talk to us.