Tel: +44 (0) 330 124 1230  Offices in Leeds, Belfast and Spain

Helping People With Foreign Property Debt & Negative Equity.


Posts Tagged ‘Holiday’

Spanish Property Values & Net Sale Proceeds

At the time of writing this blog on Spanish Property Values & Net Sale Proceeds, we find the Spanish property market in a state of flux. There are different sectors, but we only deal with essentially holiday homeowners struggling with:

  • Their mortgage and lender,
  • Negative Equity,
  • Repossessions, and
  • Keys that were ‘returned’ to the Bank.

Putting a valuation on a property for sale is difficult at the moment, but we have developed a quick ‘ready reckoner’ to give us here at EU Property Solutions a basis to work on. This will give our clients the best chance with unwanted holiday homes.

Reduced Prices

Our approach is:

  • Find a property on the development/urbanisation. It must be comparable in terms of size/type and number of bedrooms,
  • Apply a ‘Covid/Brexit’ discount. This is not an exact science, but we know the massive effect on travel and peoples’ opinions on buying now. Also, the attached ‘Daily Express’ headline doesn’t help: https://www.express.co.uk/news/politics/1508995/brexit-news-boris-johnson-uk-expats-spain-british-selling-homes-residency-permits 
  • Both factors bring nervousness to the marketplace. If you are looking to dispose of/sell then you will attract those looking for a bargain, these purchasers can ‘smell’ desperation, and
  • Finally, selling costs in Spain are extortionate and on average are 13% in total.

So as an example, a client approached us in September with a property value (in their opinion) roughly equating to the mortgage outstanding ie €150,000 and €150,000.

Our findings however were:

  • There were any number of properties for sale on this golf resort,
  • A comparable had been reduced to sell to €120,000, and was still on the market,
  • We applied our ‘Brexit and Covid’ discount of 20%, and
  • There would be selling costs if sold as advised, at 13% thereon.

In this instance, the clients would have ended up with net proceeds of c€83,500, creating a €66,500 issue due to the lender.

We work with dedicated legal teams and are known to all Spanish lenders. Our team will negotiate the best possible outcome.

In this instance, we will deliver a position whereby we will resolve the issue of the unwanted holiday home for c£17,500 in full, including costs.

If you are looking to dispose of a property close to, or in Negative Equity. EU Property Solutions can help, and we have genuine testimonials from happy clients waiting to talk to you if you wish.

Contact us today: https://eupropertysolutions.com/contact/

Spanish Property Repossession…HELP!

Spanish Property Repossession is an incredibly slow process but once the Banks start the process, it becomes unrelenting.

The Spanish Courts are awash with Property issues including Repossession and Deposit Reclaim hearings and the Actions can take years. Nonetheless, if you are in arrears with mortgage payments – your property can and will ultimately be repossessed. The costs involved in such Bank Actions, for which you will be responsible can be horrendous.

EU Property Solutions encourage borrowers to engage with lenders through a third party before repossession occurs, as this is when the best results can be achieved for borrowers and the lender. Nonetheless, should Spanish Property Repossession occur or have already happened we can help. See our case study below.

This brief blog sees us share what we are seeing in the subject of Spanish Property Repossessions, most notably:

  1. UK Debt Collection Agencies (DCA’s) are being used frequently and are becoming more prominent in their approach.
  2. Most borrowers with a Spanish property issue have an asset position in the UK, e.g. home and investments. These will be at risk if the DCA and/or look to enforce the debt owed.
  3. Many Banks currently looking to secure Orders Charging Land on clients’ UK assets to secure their debt position.
  4. Vulture Funds are increasingly buying non-performing loans from Spanish Banks. These funds want full repayment and are extremely aggressive in their approach. They are far more efficient in debt collection than Spanish Banks using Insolvency action against borrowers. THIS IS AN INCREASINGLY WORRYING TREND HERE.

If repossession has occurred and you are being pursued for outstanding debt, it is essential to act now and to engage with the relevant collection agent.

EU Property Solutions understand how collection agents work and how Banks operate, working with them on a daily basis.

A recent example of a Spanish Property Repossession case, EU Property Solutions settled with a core Spanish lender saw:

  • Our client owned a property in Estepona, Costa Del Sol.
  • Following a period of financial difficulty, our client fell behind on her mortgage payments.
  • Our clients’ property was repossessed and she received a letter from a UK Solicitors firm acting on behalf of the Spanish lender. They requested a full repayment of the £90,000 shortfall debt.
  • The clients’ non-engagement with the Bank saw costs rise considerably. The Bank ultimately secured a Charge on her UK home.
  • EU Property Solutions were appointed and within 6 months achieved a settlement. We achieved the settlement for £18,000 including; costs on a Full and Final Basis and the charge removed from her home.
  • The home is now safe and savings of c£72,000 achieved.

If your Spanish Property is subject to repossession or has been repossessed, call EU Property Solutions, it’s not too late – but make sure you call us today.

Phone: +44 330 124 1230

Email: [email protected]

We are the ONLY dedicated advisors who cover this subject in this way and with our confidence and knowledge, we felt compelled to write this short book for borrowers out there who are struggling with a foreign mortgage. Click here to read the full eBook!