Posts Tagged ‘pension’
EU Property Solutions receive numerous enquiries from borrowers who purchased properties in Cyprus pre-2008 and were offered Swiss Franc Loans. These mortgages were sold on the basis that the Swiss Franc was a stable currency. Unfortunately for mortgage holders, the Swiss Franc has been a very strong currency against the £ and the €.
Bizarrely pre-2008 Cyprus had the Cypriot Pound as their currency with the Euro then taking its place. At no point has the Swiss Franc ever been used other than for property purchases. Even more amazingly, Switzerland is not even an EU Country. Without doubt, these mortgages were mis-sold* and at best were deemed to be loose lending by the Cypriot Banks
Following the global financial crisis of 2008, Swiss Franc Loan balances grew due to the Swiss Franc appreciating against the Euro. Added to that there was a property crash worldwide and property prices in Cyprus plummeted. This created Negative Equity and left significant shortfalls for borrowers.
Add to this the issue of a lack of title deeds available and Land Registry issues for purchases in Cyprus, then you have a ‘heady mix’ of issues to overcome. This ‘heady mix’ manifests itself in sometimes huge Negative Equity positions.
Help is however at hand and settlements can be reached by us at EU Property Solutions ….. through our extensive knowledge, negotiating skills and together with our local legal teams, full technical understanding of all cases.
EU Property Solutions were appointed to assist a couple who purchased a holiday home in Paphos and their financial exposure position and our work saw:
- A mortgage balance was SwFr414,000 which at the time of purchase equated to £182,000,
- This ‘ballooned’ to £330,000 due to the currency fluctuation referred to above.
- The property value was only £150,000.
EU Property Solutions negotiated the sale of the property with the lender and a lump sum payment of £35,000 to close the mortgage account. Savings of c£145,000 achieved.
Furthermore, Cyprus is not the only country we have seen the use of Swiss Franc Mortgages. We have seen cases in Poland and Hungary with mortgages issued in Swiss Franc Mortgages.
If you are losing your Swiss Franc Mortgage battle and wish to discuss your options, please call EU Property Solutions today on +44 (0)330 124 1230.
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.
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.