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