Posts Tagged ‘mortgage’
Recently we have seen a large increase in enquiries from people who have overseas mortgages, specifically in Cyprus and Spain, asking the question “Can a foreign debt be collected in the UK?”. Many are concerned about the rising number of loan sales being undertaken by Banks across Europe. These loan sales are a result of Banks looking to clear all ‘problematic’ debt and tidy up their books.
‘Problematic’ debt generally falls into the following categories:
- If you are in arrears, even if you are only one/two months behind
- Unaffordable repayments as a result of the end of your interest-only period
- Your property is in negative equity
Many people think that ignoring a foreign mortgage problem will see it go away. Yes, a lot of time has elapsed since the 2008 crash but unfortunately, these Banks do not forget!
Banks are still relatively civil in most instances provided that you engage in some form, but across the board, their patience is wearing thin. If you ignore your lender, they may use the following to recover money:
- Applying for European Enforcement Orders
- Appointing strong legal firms to chase you in the UK
- Making their own enquiries as to the people’s worth/assets
- Most worryingly for our clients, the sale of loans to Vulture Funds
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.
How can we help?
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 we understand how the Banks work and can communicate effectively with them.
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 pensions, come under threat.
The legal costs in such recovery actions can be horrific and you will be asked to pay these too.
Definitive advice is imperative. Relying on uninformed opinions is no good for those facing this sort of situation.
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.
Contact our team today to find out your options. You can call us on 0333 363 6442 or email us at [email protected]
Community fees and IBI taxes can be unexpected extra costs for property owners in Spain. They become a more serious issue when you are struggling to stay up to date with these payments or if you have to choose between paying these or your mortgage.
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.
IBI taxes are paid to the local authority and are used to pay for local services and infrastructure such as roads, rubbish collection, street lighting and general maintenance.
What Happens if I Can’t Pay?
If you can’t pay community fees the community president will contact you to request payment as soon as possible. If you can’t pay, the community issues a court demand for payment. In extreme cases, the community of owners can request the sale of the property to receive payment for outstanding debts.
It is important for borrowers to keep up to date with these fees as debt collection agencies can be hired to chase you in the UK and Ireland
If you don’t pay IBI taxes you will be charged a penalty fee. This can be between 5% and 20% of the total owed. Ultimately failure to pay I.B.I on a property could result in the loss of the property.
If you are struggling with community fees and IBI taxes, you may also be falling behind on your mortgage payments. 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.
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.
What are your options?
If you cannot maintain payments, 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.
Are you a victim of the 2008 financial crash with unwanted property in Costa Del Sol? If so, this post is for you.
For many, the idea of owning a holiday home on the sunny south coast of Spain was a dream come true.
Unfortunately, due to the aftermath of the 2008 property crisis, this dream quickly became a nightmare. A lot of these foreign property owners have now been lumbered with incomplete units and lost deposits. Essentially sucking them into a problem that wasn’t theirs, to begin with.
We recently took a trip to Costa Del Sol to visit the developments in the region including Duquesa Village in Manilva and Casares Golf Resort. Both of these developments are listed on our Wall of Shame.
As we are committed to standing up for you and taking the fight back to the big banks, we find that these trips are helpful to keep an eye on the status and condition of these properties.
You can take a look at some of the photos from our trip below:
So if you have an unwanted property in any of these developments please get in contact with us, help is at hand. At EU Property Solutions we know that things can look bleak for those of you still paying astronomical mortgages on unwanted foreign property.
We understand the situation all too well:
- You may not understand the Spanish laws.
- You may not understand the Spanish bureaucracy. Understanding the language can be another issue. It is very easy to feel like you have your back against the wall.
This is where we come in. Armed with our expertise and knowledge. We are your best bet in reaching a satisfactory solution.
We have helped countless ex-pats in their fight against the banks, and greedy property developers to claw back their hard-earned money.
Check out our YouTube channel to hear from our clients themselves. Our free online E-Book also does a good job of explaining our mission and how we can help you. Alternatively, you can also consult our blog for further guidance on how to navigate these issues.
This blog focuses on our recent trip to Paphos, Cyprus.
The year is 2021, well over 10 years since many of you reading this would have bought a holiday home in Cyprus.
Who would have thought that we would still be picking up the pieces from the 2008 recession? Who would have thought that we would be about to head into yet another global financial crisis in 2021?
(Thanks a bunch COVID-19!) So who in their right mind would have thought that such poor-quality loans designed to mislead the consumer could have had such long-lasting implications?
As part of our efforts to hold the banks accountable for their role in the 2008 foreign property crisis, we recently went on a trip to Paphos, Cyprus to take a look at some of the developments there.
During our visit, we paid a visit to:
- Aphrodite Hills
- Thalassa View Gardens
- Coral Bay
You can check out the photos from our trip below.
If you are having a hard time trying to sell your property or pay off your foreign mortgage at Aphrodite Hills or Thalassa View Gardens please get in touch.
Many ex-pats in your position have tried to hold the banks accountable for this disaster. However, they haven’t had much luck. Unfortunately, Cypriot courts don’t seem to have too much sympathy.
Luckily for you, EU Property Solutions has regular contact with banks across Europe and has built strong relationships over the years.
This means that we are in a strong position to assist you in resolving these issues. Believe it or not, those working at the banks are people too. In many cases, they are happy to listen to reason.
We have helped hundreds of people in your position, you can take a look at our YouTube channel to hear testimonials from many of our satisfied clients.
For more information on our background and how we operate, you can download our free e-book here. You can also check out our blog, which we frequently update with the latest news related to the EU property market.
Together we can hold the big banks accountable.
Welcome to our 4-part blog series! This blog focuses on our recent trip to Alicante.
For many of our clients, owning a holiday home in Alicante prior to 2008 was too good an opportunity to miss.
A beautiful Spanish port city just down the road from Benidorm and Murcia, what’s not to love? To make the idea more enticing, property prices were eye-wateringly affordable for your average British national making decent money.
It all seemed too good to be true. Unfortunately for many, it was, as we sit 13 years later still licking our wounds from the 2008 crisis.
Many ex-pat property owners now find themselves in the uncomfortable position of being in negative equity and under threat of repossession as they are unable to pay back the money they owe. The situation seems pretty bleak for many: they are in a hole unable to dig themselves out. Due to the sheer recklessness of the foreign banks pre-2008, it is also more difficult than ever to borrow money. How ironic…
It’s a classic David vs Goliath scenario. How can you stand a chance of defeating this beast? This is where we at EU Property Solutions come in.
As part of our fight against the big banks, we recently travelled to Alicante to check out some of the developments in the area.
During our time in Alicante, we visited developments such as:
- Corvera Golf Resort
- Hacienda Riquelme
- Hacienda del Alamo
- Polaris World Developments
- Roda Golf
You can see some pictures from our trip below.
If you have unwanted property at any of these developments get in contact with us today!
EU Property solutions have helped hundreds of people in your situation. You can hear from many of our satisfied customers on our YouTube channel.
Don’t allow the banks to leave you holding the bag while they get off scot-free.
Remember you are not in this alone in this, help is available to you.
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.
EU PROPERTY SOLUTIONS- EXPERTS IN ALL SPANISH PROPERTY ISSUES!
This blog will be focusing on the mis-selling that went on in Spain between 2004-2008. Do you think that you or one of your clients have been mis-sold a Spanish Property?
If there was a mortgage obtained in Spain between 2004 and 2008, you were undoubtedly mis-sold the mortgage by today’s standards – for sure.
A lot of people in this situation were interested in buying a property at that time but were subjected to unscrupulous methods undertaken by:
- The developers.
- Their agents.
- Mortgage Brokers.
- The Banks.
Can you get compensation, write-offs, or any other Court award? Unfortunately not!
Yes what happened was 100% wrong, and yes it was unfair, but in 99.99% of the cases, the Courts will find that there is no case to answer. People who have attempted to get what they see as justice, have spent tens of thousands of Euros and years of their life, fighting the Spanish Courts.
A lot of these Spanish property cases are ‘not fit for purpose’.
This representation of the Court system may seem rude or harsh, but on the ‘flip side,’ it applies to Banks and their actions. Typically, a repossession case takes four years to complete. In various meetings with high-level Bank officials in Spain, they echo our ‘not fit for purpose’ claim, in terms of the Courts.
That said there are other routes, plans, and solutions to deal with the disposal of holiday homes in Spain and getting rid of a troublesome mortgage.
Don’t forget to check out our YouTube page for the most up-to-date information & advice from our team. Click HERE to watch.
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.
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/
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.
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.
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.
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!
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.
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.