Spain was the most prevalent place for negative equity in holiday homes. However Cyprus and Portugal are still in that position. Negative equity is a phrase regularly used to calculate the amount the loan exceeds the current market value.

In Portugal many holiday homes were sold in conjunction with golf course facilities. Some of these facilities were not fit for purpose. Or have not been maintained to the level required and have fallen into disrepair.

In both Cyprus and Portugal, lending was at best loose in the period 2004 through to 2008. The following created a situation where there is extensive negative equity or negative equity loans, in holiday homes in both Cyprus and Portugal caused by:

1. Inflated values at the time of purchase,
2. Poor quality of build,
3. ‘Dodgy’ selling promoters (a huge point),
4. Decaying developments and infrastructures, and
5. As advised, loose lending and massive LTV’s.

The holiday home type properties in Cyprus and Portugal saw huge drops in value in 2009 onwards. This left many holiday home owners facing negative equity and/or mortgage repossessions.

How we can help

We at EU Property Solutions, fully understand the emotions suffered when people are in such positions.

Negative equity especially on a Cypriot or Portuguese property can be such a burden on life. Brought about by one mistake.

The key is to attack that mistake using advisors who fully understand this niche market (that’s us!).

Usually, most things have recovered since the financial crash of 2008/09 in our home countries e.g. home and pension values have increased.

If you are facing the difficulty of negative equity in Portugal or Cyprus, then please call us now.

It is free to talk to us, so please contact us now.

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