Posts Tagged ‘mortgage’
We hosted a webinar back in July in respect of Interest-Only mortgages. We have had quite a bit of interest in this very niche subject. It is becoming more and more relevant as time goes on. Click here to watch it on demand!
We have seen and helped hundreds of clients who had taken out Interest-Only loans who are now paying the hefty price.
This type of mis-sold mortgage issue is something that we’re seeing with our clients. They come to us after realising their 15-year interest-only term is coming to an end. We had a recent client who found out that his monthly repayments would go from €250pm to €2,150pm; an extremely high spike in payments that would very quickly become unfeasible
In this Webinar; our Chairman, Terry goes through a few examples of what we have seen and the successes we have achieved for our clients. He talks about interest-only mortgages particularly in Spain but also discussed Europe as a whole.
EU Property Solutions, with our legal team, have the Bank’s gripped. But when it comes to loan sales, they are very often sold to vulture funds. They are different animals completely and these situations are becoming more prevalent. Last month a Spanish bank even sold a performing loan book. Everything was up to speed and good, but they still sold it on so be careful with that backdrop.
Undoubtedly, many people were mis-sold properties, however, it’s very difficult to win that argument or that war. There is one bank in Spain that has sold a lot of these interest-only mortgages but there are other banks involved too. If people try to do direct approaches with the Bank it very rarely works out, therefore we respectfully suggest that you don’t. In this webinar, Terry goes through why you shouldn’t do that and how we can attack the problem for you.
If your Interest-Only period is coming to the end of its term and you want to explore your options, contact EU Property Solutions today and we can help you.
📞: 0330 124 1230
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
There is currently a huge problem in Spain with ‘Squatters’ unlawfully occupying unused holiday homes.
With Covid-19 travel restrictions ongoing, many holiday homes across Europe have been sitting empty for over a year. This has made the likelihood of Squatters in Spain invading properties x10 times more likely than before the pandemic.
Squatters are moving into these empty properties, making it their home and fitting new locks. They also avail of the properties water, electricity, and bins; leaving property owners left with increased bills and bins which cannot be used.
In a recent interview with Ena Cummings, founder of GoldenKeys Property; squatters were described as “vile, evil beasts” who should be thrown out immediately. Unfortunately, due to Spain’s insufficient legal system, Community Presidents not taking action, Banks being irresponsible and the countries water and electric board turning a blind eye, therefore, this means that property owners are left to deal with these squatters themselves.
In Ena’s community, there are 8 squatters who not only have moved into the development but have displayed public indecency. They have thrown bleach and wine at homes on top of stealing water, electricity, and their bin facilities. Ena expressed that the community wanted an AGM with the community presidents.
“It was arranged in 2019 to get the removal mafia in from Madrid. This was to remove the squatters, to get a loan, and pay it through our community fees (which was agreed.) But our two so-called presidents won’t sign the forms as they don’t want to throw people out on the street.”
The only guaranteed way to get squatters removed from a property is to hire a removal mafia from Madrid. This comes at a fee of €5,000. The other option to protect an empty home is to pay €35 a month for a photographic alarm system. The alarm system will notify the Guardia Civil who can throw them out within 48hrs. Nonetheless, both options add further expense to unused holiday homes in Spain.
Ena is adamant that “Spain needs to change their law, but it’s going to get worse before it gets better.”
If you have an unused property in Europe that you no longer can maintain, this is your time to act before squatters make your home theirs!
If you would like to dispose of your foreign property, there are options available for you to do so. Get in touch with EU Property Solutions today and speak with our specialist team for your FREE consultation.
It’s estimated the owners of c100,000 properties in Cyprus have not been able to obtain their Title Deeds in Cyprus. This is a massive issue for our EU Property Solutions clients, as to all intents and purposes the property can only be sold to a ‘cash buyer’ – because of the flawed Title on their property.
- The developer,
- Central Government departments, and
- Local government/councils are all involved in the process for the issuance of Title Deeds.
Undoubtedly, this gives plenty of opportunity for something to go wrong. Especially in Cyprus which it invariably does where huge delays and problems arise.
Our specialist team then works with the added factor that many developers have also now ceased to trade and are not contactable, thus the likelihood of ever obtaining complete Title Deeds is poor at best.
Many developers did not correctly divide up the plots of land when they were building apartment developments. Therefore could not provide individual separate title deeds for purchasers.
A major problem our clients face is selling without Deeds. Cypriot mortgage lenders will now not lend on properties without title deeds. Thus, the comment above your buyer must be a cash purchaser resulting in far low values/prices.
Despite the many issues for properties not having Title Deeds, the vast majority of EU Property Solutions successes in Cyprus, with Swiss Franc Currency issues and the Negative Equity arising, have been achieved for our client settlements without the right Title Deeds.
EU Property Solutions along with our Cypriot Legal Team understand how the core lenders work and their processes to resolve these property issues and settle mortgage debts. Subsequently, we often avoid sales procedures and assist borrowers with alleviating their Cyprus property debt burden which has been fuelled by the non-existant issues of Title Deeds and Swiss Franc mortgages.
A recent settlement below. This client will speak to any prospective clients about their experience with EU Property Solutions.
- A couple* approached EU Property Solutions after struggling for years with their holiday home and the mortgage thereon,
- They owned a 3-bedroom Townhouse in Paphos with no Title Deeds,
- Their outstanding mortgage at the time of our appointment was SwFr399,000 equating to £313,000 (Sterling).
- The property was valued at €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.
*This client will speak to any prospective clients about their experience with EU Property Solutions.
If you are struggling with a property with no Title Deeds and a mortgage sold to you in Swiss Francs make sure you call EU Property Solutions now: 0044 330 124 1230
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:
- UK Debt Collection Agencies (DCA’s) are being used frequently and are becoming more prominent in their approach.
- 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.
- Many Banks currently looking to secure Orders Charging Land on clients’ UK assets to secure their debt position.
- 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!
Have you fallen behind on Community Fees & IBI Taxes? If so, read on!
EU Property Solutions assist people daily who have significant mortgage arrears and missed community fee payments. Many borrowers who purchased properties in Spain were not aware of costs such as Community Fees and IBI taxes. These additional costs and Mortgage Debt in Spain can result in significant stress.
Community fees are owed to Community Presidents in Spain. These Presidents are charged with ensuring the community in which you have purchased is visibly up to scratch – for example, the maintenance of common areas, swimming pool cleaning and general upkeep of grounds.
It is important for borrowers to keep up to date with these fees as debt collection can be instructed by Presidents in Spain to the UK and Irish Debt Collection Agents.
If you cannot pay your Spanish mortgage and fall into arrears, then your mortgage balance will increase.
Missed payments are added to the balance along with penalties and interest. Furthermore, you risk legal action and ultimately you are putting your home assets and income at risk if you do not act.
If you cannot maintain payments on your Spanish property, then swift action is needed. If you act quickly through an intermediary, such as EU Property Solutions, then the matter can be brought under control and an amicable and desirable outcome achieved.
In most Spanish settlements we can achieve:
- The surrender of the property to the Bank and a complete debt write off.
- We can even negotiate Community Fees arrears and IBI tax arrears into the settlement.
Visit our YouTube channel, we publish videos on a weekly basis. This week’s video sees our client, Sue Geraghty discuss the issues she was facing before appointing our services. CLICK HERE TO WATCH.
If you are struggling with any repayments on your Spanish Property call EU Property Solutions on 0330 124 1230 for a free case review.
Spanish Banks chasing debt in the UK
Since the financial crisis in 2008, Spain has seen well over a quarter of a million properties repossessed. A staggering figure! Spanish Banks chasing debt in the UK has increased.
A large proportion of these repossessions are foreign-owned properties.
EU Property Solutions find it incredible so many British and Irish borrowers feel they can merely “hand back the keys” and walk away from the property thinking they are somehow immune to any consequences once back home.
Many borrowers post their keys through a Bank or representing solicitors’ letterbox not fully aware of the consequences.
These debtors have the impression that Spanish creditors cannot pursue their home country assets. They also think that the Banks haven’t got the time or resources to pursue overseas.
Anyone who signs a mortgage deed in Spain, including guarantors, is personally liable for the loan.
Any legal action will likely be notified to the Spanish Address on which the mortgage has been placed.
Many overseas borrowers in Ireland and the UK will be unaware of any proceedings against them until the process is gathering apace.
In terms of debt perusal in the UK or Ireland, lenders can look to recover your home assets. Many lenders will appoint UK Debt Collection agents leading to an effect on your credit report.
The Spanish lender can look to put a charge on your property even if it already has an existing mortgage and can enforce an Attachment of Earnings Order.
Spanish lenders seem to be developing a greater appetite for overseas debt perusal.
EU Property Solutions can assist anyone in this situation so please contact the team today on 0330 1241230 to arrange a free initial consultation.
Recently we have seen a large increase in enquiries from people who have mortgages overseas, specifically in Cyprus and Spain asking the question of “Can a foreign debt be collected in the UK?”. Many are concerned with some loan sales now being undertaken by Banks across Europe, as the Banks at last look to clear all problematic debt and tidy up their ‘books.’
Such problematic debt cases include:
- Those in arrears, be it one month or multiple months behind on mortgage payments.
- Unaffordable repayments brought about as mortgage products moved from interest-only to Capital repayment.
- Negative Equity on Property.
Many people think merely ignoring a foreign mortgage debt problem will see it go away. Yes – a lot of time has elapsed since the 2008 crash but like elephants, these Banks do not forget!
Banks are still relatively civil in most instances providing there is engagement in some form, but across the board – their patience is wearing thin. They are employing the following approaches to close troublesome mortgage accounts, to name but a few:
- Applying for European Enforcement Orders,
- Appointing strong legal firms to enforce in the UK,
- Making their own enquiries as the people’s worth/assets, and
- Most worryingly for our clients, the sale of loans to Vulture Funds…the name should be a clue as to how they conduct themselves…not so civil!
Foreign Banks in the main are still approachable. As ever it’s a case of the right type of engagement, usually undertaken by a trusted party.
You need someone like EU Property Solutions because:
- You need someone trusted by the Banks. They appreciate straight-talking and know we perform on cases. We only act for the client but know the different parameters that each and every Bank works within.
- Sometimes Banks are not fully truthful. EU Property Solutions cut through and call out any discrepancies from any financial institution.
- Even though we are looking to alleviate the problem here, Banks and their advisors need to be driven.
Some people believe that this ability to chase foreign debt in the UK, as provided for under Cross Border Claims EC 44/2001, will diminish with Brexit.
We do not see this happening as the EU will still be our main trading partner and such provisions ensure safer trade conditions for all.
Under law, anyone, including Bank’s and any other foreign trading entity can secure a Judgement in their country and then bring this to the UK and apply for a European Enforcement Order.
This Order when granted, and they usually are, enables the creditor to pursue clients here in the UK, which can, in turn, see UK assets such as homes, businesses and in some instance’s pensions, come under threat.
The legal costs in such recovery actions can be horrific and payable by the debtor as well.
As ever we use the mantra of #KnowtheWorstAchievetheBest.
Definitive advice is imperative. Relying on uninformed opinions is no good for those facing this sort of situation. Relying on ‘bar room’ legal opinions is dangerous – especially when these opinions that may suit your arguments, are wrong.
In conclusion, if you face foreign mortgage problems, get the best advice you can. If it goes wrong, then you will be pursued at some time. Do not ignore the issues, seek out professional help to know your options.
Welcome to today’s blog on Webinar Feedback – Mark Stucklin. As you may be aware we held our first-ever live webinar on the 27th May 2020 on Spanish & Cypriot Property Debt. If you happened to attend, we would love to hear your thoughts on it, send them over to us on [email protected]
If you are interested in watching the live webinar over again, you can do so here: https://youtu.be/E4aRc_l8Oz8
We had a great blog write-up from Property Market expert Mark Stucklin who discusses our webinar below.
The economic crisis building as a result of the coronavirus pandemic will leave some people with mortgages in Spain in financial distress, through no fault of their own.
If this happens to you, it is advisable to seek help from independent experts on how to handle the situation.
Last week I attended my first webinar (online seminar, for those that don’t know), held by Terry Bell, speaking on behalf of Bell & Co. in the UK and Ireland, and EU Property Solutions in Spain and Cyprus.
These companies specialise in helping people with business and personal debt find negotiated solutions to their financial problems.
Terry’s presentation about the typical financial problems borrowers from the UK and Ireland run into with mortgages in Spain and Cyprus was an eye-opener.
For instance, there are still many people struggling with mortgages taken on in the boom years before 2008. They are not getting any younger.
Terry explained that the “demographic” of people with mortgage problems in Spain means that time is not on their side. They need to sort out this problem before it’s too late.
There are many people in arrears on their mortgage payments who think they can walk away from their foreign debts. They think the problem won’t catch up with them back home. That is wishful thinking, even for those who did this years ago.
Slowly slowly, Spanish mortgage debts are being worked through. Debtors are pursued back home on the basis of EU directives, increasingly by vulture funds who have bought the debt.
The worst thing you can do is stick your head in the sand and hope the problem will go away. It won’t.
The best thing you can do is contact third-party experts like EU Property Solutions, who have dealt with many cases like yours, and know what to do to get the best solution for you.
Experience is key to negotiating the best terms in this complicated situation. This is probably something you have never had to deal with before. And every lender in Spain has a different approach to dealing with what they refer to as ‘delinquent debt’. Only experience of dealing with many cases helps you decide the right strategy.
Terry talked about all the problems facing borrowers in Spain and Cyprus. There’s one brutal problem in Cyprus – that we can be grateful few borrowers in Spain are having to deal with:
- Namely the Swiss Franc mortgages that were so gaily mis-sold to borrowers in Cyprus back in the boom years.
Since then, the value of property in Cyprus has plummeted:
- Whilst the Swiss Franc has appreciated, crushing borrowers financially in a vice of negative equity.
Mercifully, most borrowers in Spain have euro mortgages, but some of them will still be in negative equity more than a decade after they purchased.
And now we have a new wave of financial problems to look forward to, thanks to the coronavirus crisis.
If you find yourself in financial distress, and unable to cope with your mortgage in Spain, don’t stick your head in the sand, get in touch with EU Property Solutions.
CORONAVIRUS – NO TRAVEL, NO PROBLEM – WE HAVE THE SOLUTION FOR YOU.
The world continues to be an uncertain place. In the UK the Government has announced its stepped plan to restore normality in the midst of Coronavirus – travel restrictions. We can help you get rid of your overseas property – without visiting Spain.
One thing that has hit the headlines is a 2-week self-isolation for those returning from abroad, bar France.
This is clearly detrimental for those looking to get rid of property overseas, especially during this period. No one wants to self-isolate for 2 weeks having been on lockdown for some time.
EU Property Solutions legal process allows you to get rid of your overseas property without visiting Spain. Here is how:
- You swear a Power of Attorney allowing our Legal Team in Spain to represent you and sign documentation in the country on your behalf. This is arguably the most you will travel – to a local notary to have this document sworn.
- We will arrange access for a Lender Valuation. Just give us the keys or tell us your keyholder’s details.
- We will communicate with the Lender on your behalf. Including any face to face requirements.
- We will sign the Legal Paperwork and conclude the case on your behalf.
Trust is key in this process. Trust us to do right by you and we need to trust you will cooperate to get the desired conclusion.
If your Spanish property is detrimental, especially now during this pandemic ~ respond. Allow EU Property Solutions to resolve the matter on your behalf from the safety of your home.
EU Property Solutions have options and plans for every eventuality. We ensure we will protect you, your income, your home, pensions, and other assets – from any potential or ensuing legal threat.
WE HAVE THE SOLUTIONS TO HELP YOU DEAL WITH GETTING RID OF YOUR PROPERTY – WITHOUT VISITING SPAIN.
CORONAVIRUS – SPANISH PROPERTY OPPORTUNITY OR THREAT?
We are in unprecedented times with Coronavirus creating havoc across the world and especially in Europe.
It is a Health and Economic Emergency with thousands tragically losing their lives and millions losing their livelihoods.
Undoubtedly property markets suffer in periods of coronavirus uncertainty.
Spain is at the center of the European battle and property owners in the country face the following problems:
- There will be no sales of property in the next say 6 months – minimum.
- Even after that, we will see people’s inability to sell their property with the overhanging economic threat. The market was trying to recover before Coronavirus
- No or reduced holiday rental income due this year will be received.
- Long-term tenancies are at risk with the huge redundancies that will follow in Spain and across Europe.
- There is no Spanish Government assistance for overseas borrowers who own second homes.
- Property value will undoubtedly decline again. Negative equity will increase.
EU Property Solutions and our legal associates continue to operate in Spain under Government guidelines to progress cases with lenders and sign Settlements with Notaries. We have achieved two settlements this week.
If your property was a burden before Coronavirus, or is now, it is time to RESPOND.
EU Property Solutions have options and plans for every eventuality, ensuring we protect you, your income, your home, pensions and other assets – from any potential or ensuing legal threat.
Check out our latest settlement video to see a true reflection of our work in how we alleviate foreign property debt as well as allowing families to move on with their lives: CLICK HERE TO WATCH VIDEO
As Mark Stucklin said last week:
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.