Posts Tagged ‘Probate’
Costa Blanca has long been a popular hotspot for many people wanting to buy their dream holiday home. Over the years many have followed their dream purchasing either investment properties or holiday homes for retirement futures.
During the Spanish property boom pre-2008, many people purchased properties in this region. Our focus this week has turned to the notorious Polaris World Golf Resorts.
They were once Europe’s most ambitious holiday home developers and consisted of numerous large-scale projects. These resorts were widely advertised on TV in the UK by legendary golfer Jack Nicklaus (the designer). This was to entice investors looking for a better life in the sun.
During this period, properties sold at highly inflated prices. Some apartments going for €200,000 (£160,000). Thousands of foreign investors flocked to purchase at these resorts. However, when the financial crisis hit in 2008, the prices of these apartments declined rapidly.
Despite the slump in the property market, Polaris World continued to build and ignored the warning signs.
By 2010, they were forced to relinquish most of their assets. This included the golf courses and unsold properties, to the lender. These once-popular resorts are now best described as ghost villages.
In 2018 some apartments are struggling to sell for €60,000. This is leaving many in Negative Equity with unaffordable mortgage payments to meet.
- Do you own a property in Costa Blanca?
- Do you know someone going through a similar situation?
- Are you struggling to pay your mortgage?
- Are you having trouble selling your property due to Negative Equity?
There are solutions, do not delay and contact us today.
EU Property Solutions specialist team can offer tailored advice and solutions to end your nightmare forever.
Our legal team in Spain works effectively with borrowers to offload the negative asset and secure a significant debt write-down.
This often saves hundreds of thousands of euros for our clients. We have a dedicated team that will keep you informed every step of the way.
Other well-known golf resorts in Costa Blanca such as:
- Roda Golf
- United Golf
- Peraleja Golf
- Corvera Golf & Country Club
Have now found themselves in the same predicament and therefore are essentially mortgage prisoners with nowhere to turn.
Our success is proven, EU Property Solutions recently worked with a client who had purchased a holiday home in Peraleja Golf, Murcia, Spain. Due to the property crash, our client’s property value plummeted from €300,000 to a forced sale price of €140,000. When the clients approached us, the outstanding mortgage was €257,000.
As the clients were pensioners, they were unable to maintain the high mortgage repayments.
The property had been placed on the market for 5 months at €200,000. It had generated zero interest due to the development itself falling into a state of disrepair and the linked golf course closing indefinitely.
To make matters worse, the couple owned a mortgage-free property in the UK with significant equity. Furthermore, they also owned other assets including ISAs and bonds. Understandably, they were worried about the repercussions of this problem property on their assets in the UK.
After providing specialist assistance, we negotiated the voluntary surrender of the property along with a complete debt write-off (Only fees payable in this instance were the consultancy fees of EU Property Solutions.)
So, this was an excellent result and as such has allowed the couple to move forward with their lives and enjoy their retirements.
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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.