Posts Tagged ‘Vacation Home’
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/