EU Property Solutions Archives

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9 Tips to Improve Your Foreign Mortgage Issues

Here at EU Property Solutions, we have used our 8 years of experience to compile our 9 tips to improve your foreign mortgage issue.

1) Acknowledge your problem.

Burying your head in the sand or being unrealistic helps nobody. To be able to solve your problem, you need to accept it. You need to know precisely what your current situation is and every aspect of it, and say to yourself: “Hi, my name is XXX, and my house in Spain is in negative equity.”

2) Quantify your problem.

Ok, let’s explain. If you have a £100,000 shortfall on your property, you have to pay every penny back. However, do bear in mind that to make the problem disappear actually involves paying back c£140,000 when adding tax to the equation. Basically, you have to earn c£140,000 before tax to leave you with the £100,000 after-tax you need to pay your debt. Therefore, it is not a £100,000 problem, but a c£140,000 problem!

3) Be realistic in terms of time and money.

To manage your situation in the best way possible, be patient and understand that it will take longer than you think or want and it will cost more than you hope.

4) Look at the emotional toll.

Understand that resolving your property nightmare is not just about time and money, but also the emotional effect it can have on you and those around you. It will be stressful, so choose an approach with the best outcome and the least emotional cost. Do you really want to create a situation that potentially jeopardises your health, wellbeing, and relationships?

5) Don’t try to deal with your situation in isolation.

Consider the bigger picture and your financial standing overall. Take into account how financially fragile you are. If you’re financially strained, don’t make silly decisions that only fuel your debt and escalate your situation even further. Evaluate all the risks and be sensible within your means.

6) Appoint the right advisors.

Despite what you may think, you can’t do this on your own. It’s too much of a minefield without professional help. However, less able experts will use the persuasive power of numbers and impressive statistics to wow you. At EU Property Solutions, we’ve 8 years of experience in resolving foreign mortgage issues. We know the facts, the truth, and can see through the bank deception!

7) Presentation is everything!

If you do decide to go full steam ahead to resolve your issues alone, prepare well. Your presentation must have up-to-date financials and critical information or it will end in disaster. This is where we at EU Property Solutions come in. We are adept at compiling financials, untangling property situations, and fully explaining every stage. By presenting a realistic and clear case to the Banks, they are more likely to settle with us.

8) Taking the problem to the lender.

If you’ve tried in the past to resolve your situation and failed, it does not mean you will fail again. Suppose you did previously try to engage your lender for a resolution, it could be that they didn’t have the enthusiasm or inclination to do so. They simply avoided it. However, when they have experts, like EU Property Solutions, coming at them, they don’t have a choice!

9) Last, you need stamina and patience.

Ok, not just a little bit but bucket loads of the stuff. This whole property resolution challenge is not for the faint-hearted. This is our official warning sign to you, without tons of stamina and patience, you will find the journey even tougher than it is!

If you or anyone you know is looking to improve their foreign mortgage issue, get in touch with our team at [email protected] or call us on 0044 330 124 1230!

Don’t forget to check out our YouTube page for the most up-to-date information & advice from our team. Click HERE to watch.

Buying or selling property in Spain?

This blog will be providing you with tailored advice on how to avoid these pitfalls when buying or selling property in Spain.

The Spanish property market has been through a turbulent period over the last decade. EU Property Solutions work with borrowers assisting them out of difficult situations often not caused by themselves as they fell victim to the Property Crash.

The 2007-2008 crash has led to people looking to sell and get out of the property burden and those looking for a bargain investment.

We have a few pointers if you’re considering buying or selling a property in Spain.

SELLING:

Price the Property to Sell

The property market in Spain has masses of supply currently, especially in the British/Foreign investor market.
Your property needs to be priced to sell, or it will sit on the market for a long time.

Will you clear any outstanding mortgage and debts?

Will your sales proceeds (sales price less costs) clear your outstanding mortgage?
Do you owe any debts for IBI taxes or Community Fees?
If you do not clear the mortgage your lender will not release their charge on the property and the sale cannot complete.

Sales Costs

3% Capital Gains tax if you are a non-Spanish Resident.
Estate Agent fees are 3-6% of the sales price.
Energy Efficiency Certificate typically €150-€300.
Plus Valia Tax – this is a local tax on the increase in the value of the rateable value of the land.

BUYING:

Purchase Costs

Legal conveyancing fees
Land Registry Fees
Notary Fees
Income Tax Provision when purchasing from non-residents.
Bank fees for money transfers and mortgage fees.

Future Costs of Ownership

IBI Taxes
Community Fees
Utilities
Insurance
Non-resident tax

It all adds up.

Understand what you are buying.

Research is essential
Is your mortgage affordable in the long term? Does the rate change?
What rental yield can you achieve – be careful if you have been promised a yield. These often don’t materialise.

Brexit and your registrations.

Have your NIE number ready well before starting the purchase process
Open a Spanish Bank account well before the purchase process.
Brexit implications for use of property need to be understood.

If you’re interested in hearing first-hand from our Chairman Terry Bell elaborate on any of the above, you can sign up for our free webinar that we’re hosting on Thursday 16th September at 6PM ‘FREE WEBINAR | Brexit and Covid-19 | What does this mean for property values?’ Click HERE to sign up!

PS: Don’t forget to visit our YouTube channel to access a full library of our free videos & webinars. CLICK HERE

Title Deeds In Cyprus: Can I Sell Without Title Deeds?

There are more than a few issues with the way property development and sales are handled in Cyprus. This was most prominent in the lead up to and aftermath of 2008. One of the biggest issues has been the fiasco surrounding Title Deeds for Cypriot holiday properties or should we say – the lack of…

So, what are the issues with Title Deeds in Cyprus? Read on to find out more.

What are Title Deeds and why do you need them?

Officially known as a “Certificate of Registration of Immovable Property” this is an official document that shows property ownership. It also contains details about its location, size and more.

They are particularly important when it comes to the sale of property, as they are needed to transfer ownership to any buyer.

When the problems arise…

In Cyprus, the developer, central government departments, and local government/councils are all involved in the process of issuing Title Deeds. Many developers did not correctly divide up the plots of land when they were building apartment developments. Therefore, they could not provide individual separate Title Deeds for purchasers.

If you were not issued Title Deeds, it can be an incredibly frustrating process, especially if you’re trying to find information regarding your property

Selling without Title Deeds

A lack of Title Deeds in Cyprus is not a major issue if you are happy to keep your property. The real problems arise if you’re trying to sell or if you’re property is in negative equity and you want to get rid.

Without Title Deeds, you will need to find a cash buyer to purchase your property. This makes a sale much more difficult and means you may have to sell for a lower price. This is not ideal if your property is already low in value.

There can be any number of issues if the property is in negative equity, has an interest-only mortgage or has Swiss Franc currency issues. If you fall into one of these categories, you could be ‘trapped’, unable to sell and unable to keep paying for your property.

The advertisement of specific “Properties With Deeds” shows just how much of an issue Title Deeds are in Cyprus.

Can you obtain Title Deeds?

If you have dealt with the Cypriot government or local councils you will be familiar with the frustration and red tape involved. As a result, many people will not be able to secure Title Deeds, especially for properties purchased pre-2008. In fact, there are still over 100,000 people in Cyprus are still without deeds.

Our team has to deal with the fact that many developers have now ceased to trade and are not contactable. This means the likelihood of ever obtaining complete Title Deeds is poor at best.

How can we help?

EU Property Solutions can help clients without Title Deeds in Cyprus. We have assisted with Swiss Franc issues, Negative Equity and interest-only mortgages.

EU Property Solutions and our Cypriot legal team understand how lenders work and their processes to resolve these property issues and settle mortgage debts. We aim to avoid sales procedures and assist borrowers with alleviating their Cypriot property debt burdens.

If you own a property in Cyprus and you’re experiencing any of the issues discussed above, call EU Property Solutions now on 0044 330 124 1230 to speak to one of our specialists.

Below is a settlement that EU Property Solution recently achieved for a client who thought they would never escape their nightmare because they couldn’t get their Title Deeds.

A couple approached EU Property Solutions after struggling for years with their holiday home in Mazatos, Larnaca.
They owned a 3-bedroom Townhouse, with no Title Deeds.
Their outstanding mortgage at the time of our appointment was SwFr399,000 equating to £313,000 (Sterling).
The property was worth €70,000.
EU Property Solutions negotiated the successful settlement of the mortgage account.
Including our fees and settlement with their developer, the clients saved over £200,000 and most importantly protected their UK assets.

Not convinced? We have UK clients who purchased in Cyprus who are willing to speak to you regarding their experience with EU Property Solutions. Call us today to arrange a chat.

Cypriot Vulture Funds

Since the start of 2020, we have seen a spike in enquiries, particularly from those with problematic Cypriot mortgages due to Cypriot Vulture Funds.

It has been common knowledge for some time now, but the Cypriot & Greek Banks have been lining up the sale of their NPL loan books for a while.

A recent article in the excellent ‘Cyprus Property News’ https://www.news.cyprus-property-buyers.com/, confirms a €4 billion sale by two players in the mortgage market. This will develop as the Banks look to ‘tidy up’ their loan books STILL reeling from the 2008/9 crash.

With any Foreign mortgage, trying to decipher what is truly going on, is difficult. Sometimes the teams within the Banks don’t even know, so why should you.

This niche area needs serious negotiators with strong knowledgeable legal representation on the ground in the country in question. EU Property Solutions has the complete package here – right across Europe.

Getting the right advice, from afar is difficult at best….impossible in most instances.

NPL’s can arise from any Banking covenant failure that may arise. Typically, these Banking covenant failures can arise from:

Mortgages with arrears on them,
Title and Deeds issues,
Swiss Franc mortgages,
The loan being greater than the value i.e. Negative Equity, and

Loans that revert from Interest Only to Repayment.

The issues above continue to plague mortgage holders and with over 60,000 British and Irish mortgage holders in Cyprus alone, these problems are not going away any time soon.

EU Property Solutions only ever act for the client and despite offers, would never act for banks.

That said, we recognize that the Banks of today are in an invidious position as they try to move on. They face the task of trying to unravel the awful loans written by less than scrupulous Banks and Brokers back in the day.

At best, the Banks are in zombie mode with all the pressure to bear from Bank of Cyprus, IMF etc, requiring them to sort these issues, but not providing them with the resources such as a Land Registry system that works.

EU Property Solutions and their sister company Bell & Company www.bellcomp.co.uk have over the past 10 years come across many, many debt purchasers such as the debt purchasers listed below.

The comments above are not in any way malicious about the teams in these Vulture Funds, but realistic. The teams within Vulture Funds have a job to do…and do it they will. Vulture Funds buy distressed debt/NPL’s from struggling financial institutions but get all the rights of the debt at their outstanding value i.e. the loan amount plus all costs and interest.

They are not long-term holders of this type of debt and look merely to maximize their return on the loan book and each and every loan in it.

What does this mean to those under such pressure, knowing a Vulture Fund now owns your mortgage?

If you have a problematic debt with them, they will look to resolve it from their angle a soon as possible,
This includes litigation in Cyprus and in the U.K. and Ireland,
Their due diligence process will be far more stringent than the Banks to date when determining assets and liabilities,
They will work on the premise that if a client is deemed to have sufficient assets to cover their debt…they will look to maximise their recovery from these,
These include property assets including your home, pensions, cash in the bank, investments, etc and

Any other actions they see fit to maximise the return on their loan purchase.

HOW TO AVOID THE WRATH AND FURY OF VULTURE FUNDS….

Active engagement is vital, but, be aware Vulture Funds are far more clinical in their approach. There are no friendly chats here. They will hang on your every word; unlike previous conversations, you may have had with the Banks and their debt collection teams in Cyprus.

Third-Party Representation in such cases, where Vulture Funds now own your mortgage, is absolutely vital.

Vulture Funds are very effective in their work – which could possibly put mortgage holders at serious risk with UK assets.

Our mantra in our sister company – Bell & Company is always #KnowtheWorstAchievetheBest and it is so relevant with the Vulture Funds now buying up NPL’s in Cyprus

FINAL COMMENT – DOING NOTHING IS NOT AN OPTION HERE.