In this case, the client’s property was in significant negative equity and did not have title deeds. They purchased it in 2007, and when they approached us the outstanding mortgage stood at €230,000.
The property was only initially valued at approximately €70,000 so the client was facing an overall debt of €160,000.
Due to rising interest rates, our client was finding it increasingly difficult to keep up with mortgage repayments. Despite the property being tenanted, the rental income only covered enough to pay half the management fees.
Our client’s financial situation was understandably becoming more stressful and unsustainable due to this financial burden.
The fact that they did not possess proper title deeds for the property further complicated the sales process as they would have needed a cash buyer.
What we did
EU Property Solutions achieved a consensual sale of the property through negotiations with the developer and the lender. However, the sale only generated €30,000, leaving a huge shortfall of €200,000.
Our client wanted to try to settle the debt on a full and final basis. Understandly they also wanted to avoid a charge on their home in the UK.
Through extensive and laboured negotiations with the lender, developer, and client, our team at EU Property Solutions achieved a settlement figure of €10,000 on a shortfall of €200,000. This is a debt write-off of €190,000.
We were able to safeguard the client’s UK home and income. More importantly, however, the client was freed of an overhanging debt burden that was taking a massive toll on their lives.
