Posts Tagged ‘expats’
Spanish Holiday Home Values to Decline
Uncertainty and the markets do not go well together, the Spanish Property market & Spanish holiday homes are no different.
NOBODY, BUT NO ONE KNOWS what is going to happen in the coming months because of Coronavirus.
For sure Spanish Property prices will decline – the extent of this drop is unknown. Spanish Property Expert, Mark Stucklin, completed a survey recently for his website which you can find on www.spanishpropertyinsight.com to get feedback as to how Covid-19 would affect Spanish Property Prices. because and or so how together and are there
Key points relating to Spanish holiday homes:
- 57% of respondents think house prices will reduce a lot (greater than 10%),
- 37% of respondents think house prices will reduce a little (up to 10%), and
- 6% of respondents think there will be no impact on house prices.
Yet another potential house price collapse, this will be alarming to borrowers as many are already self-declared “Mortgage Prisoners” in other words, with mortgage balances greater than their property value.
There are ways through this, and EU Property Solutions’ legal process can help avoid a protracted sale and the associated sales costs. It is key to respond.
So, if you have:
1. Negative equity,
2. Falling rentals,
3. Lender issues,
4. Interest-only problems, or
5. Anything that relates to your property in terms of its problematic disposal….
EU Property Solutions have options and plans for every individual case as we ensure to protect you, your income, your home, pensions, and other assets – from any potential legal threat.
SEE BELOW A TESTIMONIAL FROM A VERY HAPPY & RELIEVED CLIENT.
WE HAVE THE SOLUTIONS TO DEAL WITH SPANISH PROPERTY DEBT ISSUES AND ALLEVIATE YOUR FOREIGN PROPERTY DEBT.
We recently had a great write-up from Mark Stucklin – a Barcelona-based Spanish property market analyst, and author of the ‘Spanish Property Doctor’ column in the Sunday Times (2005 – 2008) on the Coronavirus Crisis and the downhill effect.
Spanish mortgage relief for borrowers falling victim to the coronavirus crash.
I’ve had enquiries about the mortgage repayment moratorium that the Spanish Government introduced for people struggling with mortgages due to coronavirus.
The scope of the moratorium is understandably limited to residents struggling to pay the mortgage on their main home.
Non-resident and holiday-home owners don’t qualify for relief, but anyone in those groups now struggling to pay a mortgage in Spain will find some advice at the bottom of this article.
The mortgage repayment relief was approved by royal decree in March as part of economic measures worth 200 billion Euros.
The first thing to note is that this moratorium only applies to residents of Spain so ones struggling with their main home.
Don’t expect any relief if you can’t pay the mortgage on your holiday home:
- because tourist rental bookings have collapsed, or
- you lost your job back home.
If that’s your situation, skip to the bottom of the article and receive some advice.
Borrowers who qualify for relief can apply for a temporary and interest-free mortgage repayment holiday or deferment.
An application can be submitted up to 15 days or so after the decree has expired.
Some sources report this deadline for applications as currently standing on the 3rd of May.
Spanish mortgage moratorium requirements
- Borrowers who can demonstrate they have lost their job or seen their income slashed by 40% or more
- Family income in the month prior to requesting mortgage payment relief was no higher than three times the IPREM household income reference point,
- Mortgage repayment plus expenses and monthly utility costs greater than or equal to 35% of net household income.
- Mortgage repayments as a percentage of household income have increased by at least 1.3 as a result of the Coronavirus.
You have to apply for this mortgage relief with your lender providing:
- Proof of unemployment and business distress,
- Your Family Book to accredit household members and dependents,
- Homeownership documents including the nota simple land registry filing,
- Deeds of sale and mortgage deeds, and
- A debtor’s declaration of responsibility in compliance with the requirements of this decree
Non-resident and second-home owners in financial distress
If you find yourself in financial distress as a non-resident or second-home owner due to this crisis you may see yourself miss your Spanish mortgage repayments.
You need to get hold of the situation quickly and start talking to your lender about the options.
If you feel you need professional help from experts who know how to negotiate with banks and get you the best outcome, get in touch with financial distress and negative equity experts EU Property Solutions to discuss your case.