The Financial Crash saw a catastrophic drop in the value of holiday homes, especially in Spain. The following recession saw many people experiencing mortgage defaults and, as a result, having their properties repossesed.
The availability of mortgages and loans pre-2008 was crazy and the ‘loans to values’ were sometimes over 100%. Since these days of madness, many homeowners have experienced drops in property values of more than 50%. In some instances, we have seen properties drop by 70% in value. This has led to high levels of ‘negative equity’ in Spain.
The resulting gap between the mortgage balance and the value of the property is known as Negative Equity. Under Spanish law, the mortgage holder will be liable for any mortgage shortfall or unpaid debt in Spain.
If you are in this position you are not alone. There are over 250,000 properties in negative equity in Spain alone.
By today’s standards, nearly all mortgages of this type would be deemed to have been mis-sold. However, there is no chance of any recompense and indeed Banks and lenders are hardening their attitudes.
In the years since the financial crash, property values have risen but never recovered, as a result, negative equity persists.
Many in this situation find themselves ‘trapped’ – unable to sell their property and unable to pay off the remaining debt.
Further to this, Spanish banks can, and will, chase you for this debt in the UK and Ireland. This can potentially put your assets at risk, including the family home and your pension.
In over 10 years of working in this niche field, EU Property Solutions has developed working relationships with all Spanish Banks. Together with our legal teams are able to achieve outstanding results from difficult positions. A recent example saw a golf-development property with a negative equity position of €120,000 settle this deficit for €17,000 including fees.
There is always a cost to resolve these situations but is marginal compared to the Spanish negative equity problem.
It is free to talk to us, so please contact us now for a friendly chat about your concerns.
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We are a UK based firm with legal teams in Spain and Cyprus who understand the market and Bank practices as they stand. We remove the language barrier and utilise law, Bank lending flaws and current client circumstances to negotiate the best feasible outcome for all our clients.
EU Property Solutions was formed following the success of our associate firm Bell & Company. An FCA registered firm of Debt Strategists, Bell & Company assist individuals in difficulty in the UK and Republic of Ireland with Personal and Business-related debt issues.
We have an excellent track record of success. Our success stories and testimonials come straight from our clients & highlight the high quality of our works and outcomes. We have individuals willing to speak to prospective clients on the telephone to offer their story and experience.
Our obligation is always to our client and that is where our strength lies. Debt is highly stressful and emotional. We deal with debt day in day out and employing an intermediary removes emotion from the situation allowing clear strategy to be implemented to get the best outcome for our clients. Understanding a firm of professionals is acting on your behalf can remove stress and focus the mind to a positive end goal.